The Boeing Company (BA)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -773,000 | -3,547,000 | -2,902,000 | -12,767,000 | -1,975,000 |
| Interest expense | US$ in thousands | 2,560,000 | 2,650,000 | 2,790,000 | 2,280,000 | 867,000 |
| Interest coverage | -0.30 | -1.34 | -1.04 | -5.60 | -2.28 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $-773,000K ÷ $2,560,000K
= -0.30
The interest coverage ratio measures a company's ability to meet its interest obligations with its operating income. A higher interest coverage ratio indicates a greater ability to cover interest expenses. However, in the case of Boeing Co., the interest coverage ratio has been negative for the past five years, indicating that the company's operating income was insufficient to cover its interest expenses.
The negative values suggest that Boeing Co. faced challenges in generating enough operating income to cover its interest payments during these periods. This may raise concerns about the company's financial stability and ability to meet its debt obligations. It's important for investors and stakeholders to closely monitor Boeing Co.'s financial performance and debt management strategies in light of these consistently negative interest coverage ratios.
Peer comparison
Dec 31, 2023