Boeing Financial Statements and Financial Ratios Analyzed from 2015 to 2019
Thanks for visiting my Boeing Financial Report page. On this page, you will be able to find preliminary information about Boeing's current financial performance as well as some historical track records and trends.
For a more detailed examination of Boeing financial performance, please check out the "Financial Report". In this report, written by myself, Paul Borosky, MBA., Doctoral Candidate, and published author, you will find:
- Summarized income statement for the last 5 years.
- Summarized balance sheet for the last 5 years.
- Summary analysis by myself of important income statement, balance sheet, and financial ratio trends and other happenings.
- Five year’s worth of over twenty common financial ratios presented with formulas, calculations, and analysis tips for each ratio.
- Line by line description, explanation, and analysis tip for most financial statement line items and financial ratios.
- Professional financial analysis tips provided in each section to help YOU conduct your OWN financial analysis!
- Each section includes an “in other words” segment. This is were I use plain English to explain concepts.
Enjoy the preliminary information and for a more detailed analysis, buy the financial report!
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Sample Financial Report
Boeing Company: Brief Summary
The Boeing Company has its headquarters in Chicago, Illinois. The organization competes in the industrials sector, specifically the aerospace and defense industry. At present, the organization has approximately 161,000 employees and is led by David Calhoun, their CEO.
As for 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 more risky as compared to the overall market.
Boeing Financial Report Sources
“Boeing 2019 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 2018 10k, 2017 10k annual report, 2016 10k annual report, 2015 10k annual report, and 2019 10k annual report as the basis for information gathering.
Section 1: Boeing Income Statement Analyzed 2015 to 2019
In this section, I walk through a broad definition as to what an income statement is and why it is important. 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 important income statement line item trends from 2015 to 2019, in most cases.
Boeing Revenue Growth.
Boeing’s revenue growth trend has been all over the board in the last five years. In 2015, the organization reached approximately $96.1 billion in revenues. However, in the next two years, revenues would slide to approximately $94 billion in 2017. Fortunately though, Boeing would have an excellent year in 2018, which resulted in about $101 billion in revenues. However, in 2019, the revenue growth would slow to a whopping $76.5 billion. This fluctuation indicates that investors cannot rely upon predictable revenue trends and growth for the organization. Factors impacting the company may be internal as well as external.
Boeing 2019 Income Statement
|R & D||3,219||3,269||3,179||4,627||3,331|
Section 2: Boeing Balance Sheet Analyzed from 2015 to 2019
For 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 Short-term investments.
A disturbing trend for Boeing’s short-term investment position in the last several years would be that in 2015, the organization would have approximately $750 million in short-term investments. This position will grow until 2017, where it reached $1.17 billion. However, in the next two years, their short-term investment position would fall to 545 million in 2019. This shows that the organization in the last couple of years has been needing additional cash and may have been acquiring the needed funds by shorting their short-term investment positions. If this trend continues, the company may need to seek additional debt financing, which would elevate the risk for the organization as a whole.
Boeing 2019 Summary Balance Sheet
|Short Term Investment||545||927||1,179||1,228||750|
|LT Debt - Current|
|Total Current Liabilities||97,312||81,590||56,269||50,134||50,412|
|Total Equity & Liability||133,625||117,359||92,333||89,997||94,408|
Section 3: Boeing Financial Ratios Analyzed from 2015 to 2019
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 with 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 ended 2015 at 1.35. This means that the organization had more current assets as compared to current liabilities. Investors can take away that for the short term Boeing is definitely solvent financially. However, a major concern for investors should be that the organization does not have a continuous predictable cash flow like retail stores. In other words, cash flow for the company is more unreliable as compared to reliable. This means that the firm should probably keep a higher current ratio as compared to other industries. My most humble of opinions, 2.0 ratio would not be overdoing it.
Boeing's Return on Assets.
In 2015, Boeing’s return on assets was approximately 5.48%. In the next two years, the return on assets would increase to 9.1% in 2017. In other words, the company was using their assets in a more efficient and effective manner. However, in the next two years, the return on assets would fall to a -.48%. This shows us something significant happened to the company which resulted in a significant slowdown. If this happening is a short-term issue, then no actions may be required. However, if the slowdown is expected to be lengthy, then the organization should examine liquidation opportunities for various fixed assets.
Boeing's Debt ratio.
Boeing’s debt ratio for 2015 was 9.25%. For a mature company, this seems like a significantly low debt load. Because of the minimal debt at this point, the company may have missed opportunities to exploit tax opportunities for debt payment write offs. In the next two years, they would moderately increase their deposition to 10.59% in 2017. They would further increase the deposition in 2019 to almost 15%. Investors definitely need to examine why the organization is taken out more debt in the last year. Especially when the company’s revenues are falling. From my most humble of opinions, this financing and growth of operation strategies cannot be sustained in the long term.
Boeing 2019 Liquidity Ratios
|Net Working Capital||50,952||46,359|
Boeing 2019 Asset Utilization
|Total Asset Turnover||0.57||0.86|
|Fixed Asset Turnover||6.12||8.00|
|Days Sales Outstanding||15.57||14.00|
|Accounts Receivable Turnover||23.44||26.07|
|Working Capital Turnover||1.50||2.18|
|Average Days Inventory||388.26||280.48|
|Average Days Payable||78.81||57.90|
|Cash Conversion Cycle||325.02||236.58|
Boeing 2019 Profitability Ratios
|Return on Assets||-0.48%||8.91%|
|Return on Equity||7.38%||3085.55%|
|Net Profit Margin||-0.83%||10.34%|
|Gross Profit Margin||5.91%||19.49%|
|Operating Profit Margin||-2.58%||11.85%|
|Basic Earning Power||-1.48%||10.21%|
Boeing 2019 Long-term Debt
|Times Interest Earned||(31.85)||173.72|