The Boeing Company (BA)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 0.00 |
| Debt-to-equity ratio | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 0.00 |
| Financial leverage ratio | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 961.67 |
The solvency ratios of Boeing Co. provide insight into the company's ability to meet its long-term financial obligations. The debt-to-assets ratio has shown a slight improvement from 0.42 in March 2022 to 0.38 in December 2023, indicating that the company's assets are now financing a lower proportion of its debt. This trend suggests a potentially stronger financial position in terms of asset coverage for its debt.
Similarly, the debt-to-capital ratio has fluctuated slightly over the period, with a peak of 1.49 in December 2023. This ratio indicates that Boeing Co. has been financing approximately 149% of its capital structure through debt, which has trended upwards in the most recent quarters. The increasing trend suggests that the company may be relying more on debt for its capital needs, which could potentially increase financial risk.
Unfortunately, the data provided does not include the debt-to-equity ratio and the financial leverage ratio, which could further enhance the analysis of Boeing Co.'s solvency. It is advisable to monitor these ratios as they would provide a broader picture of the company's financial health by incorporating the equity and leverage aspects.
Overall, the solvency ratios of Boeing Co. demonstrate some fluctuation and a mix of positive and concerning trends. Cautious attention to the debt levels and their relationship to assets, capital, and equity is advisable to ensure a balanced and sustainable financial structure.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The interest coverage ratio measures a company's ability to meet its interest obligations with its earnings. A higher ratio indicates a better ability to meet interest payments. However, a ratio below 1 indicates that the company is not generating enough operating income to cover its interest expenses.
Based on the provided data, Boeing Co.'s interest coverage has been consistently below 1 for the past eight quarters, indicating that its operating income has not been sufficient to cover its interest expenses. The trend shows a declining interest coverage ratio, suggesting a worsening ability to meet interest payments.
This consistent low interest coverage ratio raises concerns about Boeing's financial health and its ability to fulfill its debt obligations. It may indicate increased financial risk and potential challenges in managing debt. Investors and creditors may closely monitor this ratio as an indication of the company's financial stability and ability to service its debt in the future.