Boeing Financial Statements and Financial Ratios Analyzed

Boeing Company: Brief Summary

The Boeing Company has its headquarters in Chicago, Illinois.  The organization competes in the industrial sector, specifically the aerospace and defense industry.  At present, the organization has approximately 161,000 employees and is led by David Calhoun, its CEO.

As for a financial snapshot, Boeing’s current stock price is approximately $185, and the market capitalization is about $102 billion.  The 52-week stock range is between $89-$391.  As for their beta, Boeing is at 1.45, which is moderately riskier as compared to the overall market.

Boeing Financial Report Sources

“Boeing 2021 Company Analysis… For Beginners: Financial Statements and Financial Ratios: Defined, Discussed, and Analyzed for 5 Years” was written by Paul Borosky, MBA., and owner of Quality Business Plan.  In this report, I used Boeing's 2021 10k, 2017 10k annual report, 2016 10k annual report, 2020k annual report, and 2019 10k annual report as the basis for information gathering. 

Section 1: Boeing Income Statement Analyzed

In this section, I walk through a broad definition of what an income statement is and why it is essential.  From this, I then discuss and define income statement line items, such as revenues, gross profits, etc., in detail.  After each line item is defined and discussed, I finally offer a summary analysis of Boeing's significant income statement line item trends in most cases.

Boeing Revenue Growth.

Boeing’s revenues were $94 billion in 2017.  In the next four years, the organization’s revenues would fall, ending 2021 at $62.2 billion.  The annual average revenue growth for the company was -8.4% for the last five years.  This trend indicates that the company is having difficulties in selling its products and or services.  An important economic event that may have impacted the firm was Covid-19.  From an investor’s perspective, this is a poor trend.

Analyst Grade: D

 

 

 

Boeing 2021 Summary Income Statement
Column1	2021	2020	2019	2018	2017
Revenues	62,286	58,158	76,559	101,127	94,005
COGS	59,237	63,800	72,031	81,421	76,542
Gross Profit	3,049	(5,642)	4,528	19,706	17,463
SG&A	4,157	4,817	3,909	4,567	4,095
Depreciation	2,144	2,246	2,271	2,114	2,047
R & D	2,249	2,476	3,219	3,269	3,179
Other
Total Operating Expenses	8,550	9,539	9,399	9,950	9,321
EBIT	(2,902)	(12,767)	(1,975)	11,987	10,344
Other Income
Interest Expense	2,714	2,199	784	544	430
EBT	(5,033)	(14,476)	(2,259)	11,604	10,107
Taxes	(743)	(2,535)	(1,623)	1,144	1,649
Net Income	(4,202)	(11,873)	(636)	10,460	8,458

 

Section 2: Boeing Balance Sheet Analyzed

For the Boeing balance sheet, I again go through each important line item from the balance sheet.  In reviewing each line item, I will define their balance sheet line item, such as cash, property, plant and equipment, and liabilities between 2015 to 2019.  Next, I then offer a summary analysis of their important balance sheet line items.

Boeing Cash:

Boeing’s cash holding was $8.8 billion in 2017.  As compared to sales, their cash holding was 9.4%.  In the next several years, the organization’s cash position would fall slightly to $8 billion or 12.9% of sales in 2021.  This trend indicates that the company is holding more cash as compared the sales in the long term.  This may mean that the firm does not have much faith in its short-term opportunities for revenue growth.  As a result, a higher cash position may be needed in short to moderate term.  From an investor’s perspective, this is a poor trend.

Analyst Grade: C

Boeing 2021 Summary Balance Sheet
Column1	2021	2020	2019	2018	2017
Cash	8,052	7,752	9,485	7,637	8,813
Short Term Investment	8,192	17,838	545	927	1,179
Account Receivable	11,261	9,950	12,309	13,904	10,516
Inventory	78,823	81,715	76,622	62,567	44,344
Other
Current Assets	108,666	121,642	102,229	87,830	65,161
Net PPE	10,918	11,820	12,502	12,645	12,672
Goodwill	8,068	8,081	8,060	7,840	5,559
Other
Total Assets	138,552	152,136	133,625	117,359	92,333
Accounts Payable	9,261	12,928	15,553	12,916	12,202
Accrued Expense	18,455	22,171	22,868	14,808	15,292
Accrued Taxes
Notes Payable	1,296	1,693	7,340	3,190	1,335
LT Debt - Current
Other
Total Current Liabilities	81,992	87,280	97,312	81,590	56,269
LT Debt	56,806	61,890	19,962	10,657	9,782
Other
Total Liabilities	153,398	170,211	141,925	116,949	91,921
Common Stock	14,113	12,848	11,806	11,829	11,865
Treasury	51,861	52,641	54,914	52,348	43,454
Retained Earnings	34,408	38,610	50,644	55,941	45,320
Other
Total Equity	(14,846)	18,316	(8,300)	410	412
Total Equity & Liability	138,552	152,136	133,625	117,359	92,333

 

Section 3: Boeing Financial Ratios Analyzed

For this section, I have chosen several different financial ratios to review for Boeing from 2015 to 2019.  In reviewing each of Boeing's financial ratios, I first start by defining the financial ratio.  Next, I supply the financial formula for calculating the specific ratio.  Finally, I offer a brief analysis of Boeing's Important Financial ratios. 

Boeing's Current Ratio.

Boeing’s current ratio was 1.16 in 2017.  In the next four years, the organization’s current ratio will increase to 1.3 in 2021.  This trend indicates the organization had enough short-term assets to cover its short-term liabilities for the last 12 months.  However, because the firm’s revenues are declining, additional cash holdings may be needed.  As a result, investors should expect the organization’s current ratio to increase in the short to medium term.  From an investor’s perspective, this is a below-average trend.

Analyst Grade: B

Boeing's Return on Assets.

Boeing’s return on assets ROA was 9.1% in 2017.  In 2021, the return on assets was -3.03%.  This trend indicates that the firm is managing/holding too many assets as compared to revenues.  As a result, the company needs to divest some fixed assets to better align with current and future revenue demands.  From an investor’s perspective, this is a poor trend.

Analyst Grade: C