The Boeing Company (BA)
Interest coverage
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -773,000 | -1,429,000 | -3,413,000 | -2,534,000 | -3,547,000 | -7,345,000 | -4,224,000 | -3,981,000 | -2,902,000 | -6,780,000 | -7,510,000 | -11,497,000 | -12,767,000 | -6,922,000 | -5,262,000 | -5,678,000 | -1,975,000 | 4,404,000 | 5,372,000 | 11,462,000 |
| Interest expense (ttm) | US$ in thousands | 2,459,000 | 2,491,000 | 2,523,000 | 2,552,000 | 2,533,000 | 2,562,000 | 2,610,000 | 2,633,000 | 2,682,000 | 2,719,000 | 2,693,000 | 2,573,000 | 2,156,000 | 1,700,000 | 1,260,000 | 861,000 | 722,000 | 638,000 | 541,000 | 496,000 |
| Interest coverage | -0.31 | -0.57 | -1.35 | -0.99 | -1.40 | -2.87 | -1.62 | -1.51 | -1.08 | -2.49 | -2.79 | -4.47 | -5.92 | -4.07 | -4.18 | -6.59 | -2.74 | 6.90 | 9.93 | 23.11 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-773,000K ÷ $2,459,000K
= -0.31
The interest coverage ratio measures a company's ability to meet its interest payment obligations. It is calculated by dividing earnings before interest and taxes (EBIT) by the interest expense. A ratio below 1 indicates that the company is not generating enough earnings to cover its interest payments, which may signal financial distress.
Based on the provided data, Boeing Co.'s interest coverage ratio has consistently been below 1 for the last eight quarters. This indicates that the company has not been able to generate sufficient earnings to cover its interest expenses. A consistently low interest coverage ratio may raise concerns about the company's financial stability and its ability to meet debt obligations.
It is essential for investors and creditors to closely monitor Boeing Co.'s interest coverage ratio over time to assess the company's financial health and its capacity to service its debt. Additionally, it may be prudent for the company to take measures to improve its earnings generation and effectively manage its interest expenses to enhance its financial position and stability.
Peer comparison
Dec 31, 2023