The Boeing Company (BA)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | -17,233,000 | -15,883,000 | -14,999,000 | -18,316,000 | -8,617,000 |
| Debt-to-capital ratio | — | — | — | — | — |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $-17,233,000K)
= —
The debt-to-capital ratio for Boeing Co. has fluctuated over the past five years, ranging from 1.35 in 2021 to 1.49 in 2023. This ratio represents the proportion of the company's total debt to its total capital, including both debt and equity. A higher debt-to-capital ratio indicates a higher level of financial leverage and potential risk, as the company is relying more on debt to finance its operations.
The increase in the ratio from 2021 to 2023 suggests that Boeing Co. has taken on more debt relative to its capital, which could be a result of various factors such as increased borrowing, declining equity, or a combination of both. It is important to note that while higher leverage can amplify returns during periods of growth, it also exposes the company to higher financial risk, especially in times of economic downturn or rising interest rates.
Further analysis of the company's financial statements and industry comparisons would provide more insights into the implications of Boeing Co.'s debt-to-capital ratio and its overall financial health.
Peer comparison
Dec 31, 2023