Analysis of Debt
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- Balance Sheet: Assets
- Common-Size Income Statement
- Common-Size Balance Sheet: Assets
- Analysis of Short-term (Operating) Activity Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Capital Asset Pricing Model (CAPM)
- Present Value of Free Cash Flow to Equity (FCFE)
- Debt to Equity since 2005
- Price to Book Value (P/BV) since 2005
- Price to Sales (P/S) since 2005
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Total Debt (Carrying Amount)
Boeing Co., balance sheet: debt
US$ in millions
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
- Short-term debt and current portion of long-term debt
- The short-term debt and current portion of long-term debt demonstrate notable volatility over the reported periods. Initial figures decreased from 1,693 million USD at the end of 2020 to 1,296 million USD at the end of 2021. However, a significant increase occurred in 2022, peaking at 5,190 million USD, which was sustained at a similar level of 5,204 million USD in 2023. The amount sharply declined again in 2024 to 1,278 million USD. This pattern suggests fluctuations in short-term financing needs or refinancing activities during the period.
- Long-term debt, excluding current portion
- The long-term debt exhibited a consistent downward trend from 61,890 million USD at the end of 2020 to 47,103 million USD in 2023, reflecting a structured effort in debt reduction or maturity of long-term liabilities. However, in 2024, this trend reversed with an increase to 52,586 million USD, indicating new long-term borrowing or reclassification of debt components.
- Total debt, including finance lease obligations and commercial paper (carrying amount)
- Total debt mirrored the movements in both short-term and long-term debt. It declined gradually from 63,583 million USD in 2020 to 52,307 million USD in 2023, consistent with the observed reduction in long-term debt. In 2024, total debt rose slightly to 53,864 million USD, aligning with the uptick in long-term debt. The overall pattern displays a controlled reduction in total liabilities over the four-year span, interrupted by a modest increase in the final year.
Total Debt (Fair Value)
| Dec 31, 2024 | |
|---|---|
| Selected Financial Data (US$ in millions) | |
| Debt, excluding finance lease obligations and commercial paper | |
| Finance lease obligations | |
| Total debt, including finance lease obligations and commercial paper (fair value) | |
| Financial Ratio | |
| Debt, fair value to carrying amount ratio | |
Based on: 10-K (reporting date: 2024-12-31).
Weighted-average Interest Rate on Debt
Weighted-average interest rate on debt:
| Interest rate | Debt amount1 | Interest rate × Debt amount | Weighted-average interest rate2 |
|---|---|---|---|
| Total | |||
Based on: 10-K (reporting date: 2024-12-31).
1 US$ in millions
2 Weighted-average interest rate = 100 × ÷ =
Interest Costs Incurred
Boeing Co., interest costs incurred
US$ in millions
| 12 months ended: | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest expense, including Boeing Capital | |||||||||||
| Interest capitalized | |||||||||||
| Interest incurred, including amounts capitalized |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
- Interest expense, including Boeing Capital
- The interest expense shows an overall increasing trend from 2020 to 2024. It starts at $2199 million in 2020, rises sharply to $2714 million in 2021, then slightly decreases to $2561 million in 2022 and further to $2459 million in 2023. However, it rises again to $2725 million by the end of 2024, indicating fluctuating but generally elevated interest costs.
- Interest capitalized
- The interest capitalized exhibits a steady upward trajectory over the years. Beginning at $81 million in 2020, this figure remains relatively stable in 2021 with $76 million before gradually increasing to $89 million in 2022, $101 million in 2023, and markedly up to $149 million in 2024. This trend suggests an increasing portion of interest costs being added to the capital base rather than immediately expensed.
- Interest incurred, including amounts capitalized
- Total interest incurred, which combines expense and capitalized interest, mirrors the overall ascending pattern observed. Starting at $2280 million in 2020, it peaks at $2790 million in 2021, then declines to $2650 million in 2022, and further to $2560 million in 2023. Subsequently, there is a significant increase to $2874 million in 2024, representing the highest level in the period analyzed. This reflects rising borrowing costs or increased debt levels over the five years.
- Overall analysis
- The data reveals a general rise in the company’s annual interest costs over the five-year span. Despite some periodic decreases in the middle years, both interest expense and interest incurred exhibit higher values at the end of 2024 compared to the starting point in 2020. Additionally, the consistent growth in interest capitalized suggests an increasing investment in capital projects funded through borrowing. This pattern may imply greater leverage or more extensive financing activities, resulting in elevated interest obligations.
Adjusted Interest Coverage Ratio
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
2024 Calculations
1 Interest coverage ratio (without capitalized interest) = EBIT ÷ Interest and debt expense
= ÷ =
2 Adjusted interest coverage ratio (with capitalized interest) = EBIT ÷ Interest incurred, including amounts capitalized
= ÷ =
- Interest Coverage Ratio (without capitalized interest)
-
The interest coverage ratio demonstrates a fluctuating trend over the five-year period. Beginning at a significantly negative level of -5.71 in 2020, it improves substantially in 2021 to -0.88 and remains relatively stable in 2022 at -0.98. There is a minor positive shift in 2023 to 0.18, indicating a brief period where earnings before interest and taxes (EBIT) sufficiently cover interest expenses. However, this improvement is not sustained, as the ratio declines sharply once again to -3.48 in 2024. The overall pattern suggests volatility in the company’s ability to cover interest costs, with intermittent improvement but an overall persistence of financial stress related to interest obligations.
- Adjusted Interest Coverage Ratio (with capitalized interest)
-
The adjusted interest coverage ratio, which accounts for capitalized interest, follows a trend similar to the unadjusted ratio. Starting at -5.4 in 2020, it improves to -0.84 in 2021 and slightly declines to -0.94 in 2022. Like the unadjusted ratio, it reaches 0.18 in 2023, indicating a temporary recovery in interest coverage capability. However, in 2024, the ratio again declines substantially to -3.3. This parallel movement to the unadjusted ratio suggests that capitalizing interest has a consistent but limited impact on improving coverage. The continuing negative ratios after 2023 indicate ongoing challenges in generating sufficient operating earnings to cover interest expenses, even when capitalized interest is considered.