Boeing

Key Performance Metrics

  • The review of Net Profit Margin witnessed a declining trend. The Net Profit Margin declined from a negative of -0.83% in 2019 to a negative of –2.86% in 2023.
  • The average EBIT Margin for the period under analysis was –5.91%, with 2023 and 2020 performing the best and worst,
  • In the current year, Boeing was unable to cover its interest liabilities with interest over of -0.13 and also in 2019 when it was a -2.74 
  • The Asset turnover stood at 0.57 times in 2023 from 0.61 in 2019, implying a low performance of the business in relation to revenue.

Profitability

  • The revenue of Boeing has increased over the years. The revenue increased by 79% in 2023. There also occurred an increase of 6.94% between 2022 and 2023 (the current period).
  • Boeing’s performance in profitability looks bad as the return on capital employed also recorded bad performance during the period of analysis.

Liquidity

  • The company’s result in liquidity looks poor, as current ratio decreased from 1.05:1 to 1.14:1 on the last year. Which implies that the company does have enough assets to settle its current liabilities.
  • Receivables days declined over the 5-year period as it declined from 46 days to 51.92 days to recover money owed by customers. Climbed
  • Working capital steadily between 2019 and 2022, rising by 30% with a YoY growth of 1.14%.

Capital Structure

  • Boeing is both equity and debt financed.
  • The debt-to-equity (D/E) ratio has been falling year on year. The gearing position of the company appears to be high as it stood above -2.73 in the current year.

 

Source: Boeing Annual Report

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