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Boeing Co Gross Margin %

: -9.92% (As of Jun. 2020)
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Gross Margin % is calculated as gross profit divided by its revenue. Boeing Co's Gross Profit for the three months ended in Jun. 2020 was $-1,171 Mil. Boeing Co's Revenue for the three months ended in Jun. 2020 was $11,807 Mil. Therefore, Boeing Co's Gross Margin % for the quarter that ended in Jun. 2020 was -9.92%.

Warning Sign:

Boeing Co gross margin has been in long term decline. The average rate of decline per year is -10.4%.


NYSE:BA' s Gross Margin % Range Over the Past 10 Years
Min: 1.83   Med: 15.72   Max: 19.42
Current: 1.83

1.83
19.42

During the past 13 years, the highest Gross Margin % of Boeing Co was 19.42%. The lowest was 1.83%. And the median was 15.72%.

NYSE:BA's Gross Margin % is ranked lower than
96% of the 240 Companies
in the Aerospace & Defense industry.

( Industry Median: 25.88 vs. NYSE:BA: 1.83 )

Boeing Co had a gross margin of -9.92% for the quarter that ended in Jun. 2020 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Boeing Co was -10.40% per year.


Boeing Co Gross Margin % Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Boeing Co Annual Data
Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19
Gross Margin % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 14.59 15.48 18.50 19.42 5.83

Boeing Co Quarterly Data
Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20
Gross Margin % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -13.07 15.27 -4.45 0.83 -9.92

Competitive Comparison
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap.


Boeing Co Gross Margin % Distribution

* The bar in red indicates where Boeing Co's Gross Margin % falls into.



Boeing Co Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Boeing Co's Gross Margin for the fiscal year that ended in Dec. 2019 is calculated as

Gross Margin % (A: Dec. 2019 )=Gross Profit (A: Dec. 2019 ) / Revenue (A: Dec. 2019 )
=4466 / 76559
=(Revenue - Cost of Goods Sold) / Revenue
=(76559 - 72093) / 76559
=5.83 %

Boeing Co's Gross Margin for the quarter that ended in Jun. 2020 is calculated as


Gross Margin % (Q: Jun. 2020 )=Gross Profit (Q: Jun. 2020 ) / Revenue (Q: Jun. 2020 )
=-1171 / 11807
=(Revenue - Cost of Goods Sold) / Revenue
=(11807 - 12978) / 11807
=-9.92 %

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


Boeing Co  (NYSE:BA) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Boeing Co had a gross margin of -9.92% for the quarter that ended in Jun. 2020 => No sustainable competitive advantage


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


Boeing Co Gross Margin % Related Terms


Boeing Co Gross Margin % Headlines

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