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Boeing Co (NYSE:BA) Financial Strength

: 3 (As of Sep. 2022)
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Boeing Co has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.

Warning Sign:

Boeing Co displays poor financial strength. Usually, this is caused by too much debt for the company.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Boeing Co did not have earnings to cover the interest expense. Boeing Co's debt to revenue ratio for the quarter that ended in Sep. 2022 was 0.90. As of today, Boeing Co's Altman Z-Score is 1.18.


Boeing Co (NYSE:BA) Financial Strength Competitive Comparison

For the Aerospace & Defense subindustry, Boeing Co's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* 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. Note that "N/A" values will not show up in the chart.

   

Boeing Co (NYSE:BA) Financial Strength Distribution

For the Aerospace & Defense industry and Industrials sector, Boeing Co's Financial Strength distribution charts can be found below:

* The bar in red indicates where Boeing Co's Financial Strength falls into.



Boeing Co Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Boeing Co's Interest Expense for the months ended in Sep. 2022 was $-621 Mil. Its Operating Income for the months ended in Sep. 2022 was $-2,775 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2022 was $51,788 Mil.

Boeing Co's Interest Coverage for the quarter that ended in Sep. 2022 is

Boeing Co did not have earnings to cover the interest expense.

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Boeing Co's Debt to Revenue Ratio for the quarter that ended in Sep. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Sep. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(5431 + 51788) / 63824
=0.90

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Boeing Co has a Z-score of 1.18, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 1.18 is in distress zone. This implies bankruptcy possibility in the next two years.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Boeing Co  (NYSE:BA) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Boeing Co has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.


Boeing Co Financial Strength Related Terms

Thank you for viewing the detailed overview of Boeing Co's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


Boeing Co (NYSE:BA) Business Description

Boeing Co logo
Address
100 North Riverside Plaza, Chicago, IL, USA, 60606-1596
Boeing is a major aerospace and defense firm. With headquarters in Chicago, the firm operates in four segments, commercial airplanes, defense, space & security, global services, and Boeing capital. Boeing's commercial airplanes segment generally produces about 60% of sales and two-thirds of operating profit, and it competes with Airbus in the production of aircraft ranging from 130 seats upwards. Boeing's defense, space & security segment competes with Lockheed, Northrop, and several other firms to create military aircraft and weaponry. The defense segment produces about 25% of sales and 13% of operating profit, respectively. Boeing's global services segment provides aftermarket servicing to commercial and military aircraft and produces about 15% of sales and 21% of operating profit.
Executives
Pope Stephanie F officer: President & CEO, BGS C/O THE BOEING COMPANY 100 RIVERSIDE PLAZA, MC 5003-1001 CHICAGO IL 60606-1596
Ojakli Ziad S officer: EVP, Gov't Ops FORD MOTOR COMPANY 1350 I ST. NW WASHINGTON D.C. DC 20005
Joyce David Leon director GENERAL ELECTRIC COMPANY 5 NECCO STREET BOSTON MA 02210
West Brian officer: EVP & Chief Financial Officer 770 BROADWAY NEW YORK NY 10003
Dohnalek David A officer: Interim CFO C/O THE BOEING COMPANY 100 RIVERSIDE PLAZA, MC 5003-1001 CHICAGO IL 60606-1596
Harris Stayce D. director 1999 S. BASCOM AVE. SUITE 700 CAMPBELL CA 95008
Hibbard Carol J. officer: Controller C/O THE BOEING COMPANY 100 RIVERSIDE PLAZA, MC 5003-1001 CHICAGO IL 60606-1596
Doughtie Lynne M director C/O THE BOEING COMPANY 100 RIVERSIDE PLAZA, MC 5003-1001 CHICAGO IL 60606-1596
Dandridge Edward Lee officer: SVP, Communications C/O THE BOEING COMPANY 100 RIVERSIDE PLAZA, MC 5003-1001 CHICAGO IL 60606-1596
D Ambrose Michael officer: EVP, Human Resources 77 W. WACKER DR., SUITE 4600 CHICAGO IL 60601
Doniz Susan officer: CIO & SVP, IT & Data Analytics C/O THE BOEING COMPANY 100 RIVERSIDE PLAZA, MC 5003-1001 CHICAGO IL 60606-1596
Johri Akhil director UNITED TECHNOLOGIES CORPORATION 10 FARM SPRINGS ROAD FARMINGTON CT 06032
Mollenkopf Steven M director 5775 MOREHOUSE DRIVE SAN DIEGO CA 92121
Golightly Niel L officer: SVP, Communications C/O THE BOEING COMPANY 100 RIVERSIDE PLAZA, MC 5003-1001 CHICAGO IL 60606-1596
Richardson John M director 10 S. DEARBORN STREET 54TH FLOOR CHICAGO IL 60603

Boeing Co (NYSE:BA) Headlines

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