Stock Analysis on Net
Stock Analysis on Net

Boeing Co. (NYSE:BA)

Analysis of Income Taxes

Microsoft Excel

Income Tax Expense (Benefit)

Boeing Co., income tax expense (benefit), continuing operations

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
U.S. federal 9 (58) (89) (3,968) (308)
Non-U.S. 179 142 147 148 169
U.S. state 19 (42) 42 21 (161)
Current tax expense (benefit) 207 42 100 (3,799) (300)
U.S. federal 6 (62) (855) 652 (953)
Non-U.S. 5 (3) (12) — (3)
U.S. state 19 54 24 612 (367)
Deferred tax expense (benefit) 30 (11) (843) 1,264 (1,323)
Income tax expense (benefit) 237 31 (743) (2,535) (1,623)

Based on: 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), 10-K (reporting date: 2019-12-31).

Item Description The company
Current tax expense (benefit) Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations. Boeing Co. current tax expense (benefit) decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.
Deferred tax expense (benefit) Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations. Boeing Co. deferred tax expense (benefit) increased from 2021 to 2022 and from 2022 to 2023.
Income tax expense (benefit) Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Boeing Co. income tax expense (benefit) increased from 2021 to 2022 and from 2022 to 2023.

Effective Income Tax Rate (EITR)

Boeing Co., effective income tax rate (EITR) reconciliation

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
U.S. federal statutory tax rate 21.00% 21.00% 21.00% 21.00% 21.00%
Valuation allowance -57.30% -23.90% -10.20% -18.00% -1.10%
Research and development credits 23.60% 4.10% 3.80% 2.00% 16.90%
State income tax provision, net of effects on U.S. federal tax 3.70% 1.80% 1.90% 1.20% 2.00%
Tax on non-U.S. activities -1.80% -1.30% -0.90% -0.10% -0.90%
Impact of subsidiary shares purchased from noncontrolling interests 1.50% 0.00% 0.00% 0.00% 0.00%
Other provision adjustments -2.50% -2.30% -0.90% 7.30% 17.50%
Audit settlements 0.00% 0.00% 0.00% 4.10% 16.40%
Effective income tax rate -11.80% -0.60% 14.70% 17.50% 71.80%

Based on: 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), 10-K (reporting date: 2019-12-31).

Item Description The company
Effective income tax rate Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Boeing Co. effective income tax rate decreased from 2021 to 2022 and from 2022 to 2023.

Components of Deferred Tax Assets and Liabilities

Boeing Co., components of deferred tax assets and liabilities

US$ in millions

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Inventory and long-term contract methods of income recognition (5,115) (4,369) (3,827) (4,313) (6,048)
Research expenditures 2,873 1,464 — — —
Federal net operating loss, credit, interest and other carryovers 2,551 2,082 1,522 317 —
Fixed assets, intangibles and goodwill (1,566) (1,641) (1,657) (1,645) (1,544)
Pension benefits 1,178 1,146 1,739 3,029 3,495
Other employee benefits 1,162 1,095 991 957 849
State net operating loss, credit, interest and other carryovers 1,137 1,021 929 777 —
Accrued expenses and reserves 956 933 763 808 628
Other postretirement benefit obligations 590 660 913 1,023 1,120
737 MAX customer concessions and other considerations 310 425 682 1,253 1,626
Other 304 179 227 (36) 262
Gross deferred tax assets (liabilities) before valuation allowance 4,380 2,995 2,282 2,170 388
Valuation allowance (4,550) (3,162) (2,423) (3,094) (118)
Net deferred tax assets (liabilities) after valuation allowance (170) (167) (141) (924) 270

Based on: 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), 10-K (reporting date: 2019-12-31).

Item Description The company
Net deferred tax assets (liabilities) after valuation allowance Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting. Boeing Co. net deferred tax assets (liabilities) after valuation allowance decreased from 2021 to 2022 and from 2022 to 2023.

Deferred Tax Assets and Liabilities, Classification

Boeing Co., deferred tax assets and liabilities, classification

US$ in millions

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Deferred tax assets 59 63 77 86 683
Deferred tax liabilities 229 230 218 1,010 413

Based on: 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), 10-K (reporting date: 2019-12-31).

Item Description The company
Deferred tax assets Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent. Boeing Co. deferred tax assets decreased from 2021 to 2022 and from 2022 to 2023.
Deferred tax liabilities Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent. Boeing Co. deferred tax liabilities increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.

Adjustments to Financial Statements: Removal of Deferred Taxes

Boeing Co., adjustments to financial statements

US$ in millions

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Adjustment to Total Assets
Total assets (as reported) 137,012 137,100 138,552 152,136 133,625
Less: Noncurrent deferred tax assets, net 59 63 77 86 683
Total assets (adjusted) 136,953 137,037 138,475 152,050 132,942
Adjustment to Total Liabilities
Total liabilities (as reported) 154,240 152,948 153,398 170,211 141,925
Less: Noncurrent deferred tax liabilities, net 229 230 218 1,010 413
Total liabilities (adjusted) 154,011 152,718 153,180 169,201 141,512
Adjustment to Shareholders’ Deficit
Shareholders’ deficit (as reported) (17,233) (15,883) (14,999) (18,316) (8,617)
Less: Net deferred tax assets (liabilities) (170) (167) (141) (924) 270
Shareholders’ deficit (adjusted) (17,063) (15,716) (14,858) (17,392) (8,887)
Adjustment to Net Loss Attributable To Boeing Shareholders
Net loss attributable to Boeing Shareholders (as reported) (2,222) (4,935) (4,202) (11,873) (636)
Add: Deferred income tax expense (benefit) 30 (11) (843) 1,264 (1,323)
Net loss attributable to Boeing Shareholders (adjusted) (2,192) (4,946) (5,045) (10,609) (1,959)

Based on: 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), 10-K (reporting date: 2019-12-31).

Boeing Co., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Boeing Co., adjusted financial ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Net Profit Margin
Reported net profit margin -2.86% -7.41% -6.75% -20.42% -0.83%
Adjusted net profit margin -2.82% -7.43% -8.10% -18.24% -2.56%
Total Asset Turnover
Reported total asset turnover 0.57 0.49 0.45 0.38 0.57
Adjusted total asset turnover 0.57 0.49 0.45 0.38 0.58
Financial Leverage
Reported financial leverage — — — — —
Adjusted financial leverage — — — — —
Return on Equity (ROE)
Reported ROE — — — — —
Adjusted ROE — — — — —
Return on Assets (ROA)
Reported ROA -1.62% -3.60% -3.03% -7.80% -0.48%
Adjusted ROA -1.60% -3.61% -3.64% -6.98% -1.47%

Based on: 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), 10-K (reporting date: 2019-12-31).

Financial ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Boeing Co. adjusted net profit margin ratio improved from 2021 to 2022 and from 2022 to 2023.
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Boeing Co. adjusted total asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Boeing Co. adjusted ROA improved from 2021 to 2022 and from 2022 to 2023.

Boeing Co., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net loss attributable to Boeing Shareholders (2,222) (4,935) (4,202) (11,873) (636)
Revenues 77,794 66,608 62,286 58,158 76,559
Profitability Ratio
Net profit margin1 -2.86% -7.41% -6.75% -20.42% -0.83%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net loss attributable to Boeing Shareholders (2,192) (4,946) (5,045) (10,609) (1,959)
Revenues 77,794 66,608 62,286 58,158 76,559
Profitability Ratio
Adjusted net profit margin2 -2.82% -7.43% -8.10% -18.24% -2.56%

Based on: 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), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 Net profit margin = 100 × Net loss attributable to Boeing Shareholders ÷ Revenues
= 100 × -2,222 ÷ 77,794 = -2.86%

2 Adjusted net profit margin = 100 × Adjusted net loss attributable to Boeing Shareholders ÷ Revenues
= 100 × -2,192 ÷ 77,794 = -2.82%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Boeing Co. adjusted net profit margin ratio improved from 2021 to 2022 and from 2022 to 2023.

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Revenues 77,794 66,608 62,286 58,158 76,559
Total assets 137,012 137,100 138,552 152,136 133,625
Activity Ratio
Total asset turnover1 0.57 0.49 0.45 0.38 0.57
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Revenues 77,794 66,608 62,286 58,158 76,559
Adjusted total assets 136,953 137,037 138,475 152,050 132,942
Activity Ratio
Adjusted total asset turnover2 0.57 0.49 0.45 0.38 0.58

Based on: 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), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 Total asset turnover = Revenues ÷ Total assets
= 77,794 ÷ 137,012 = 0.57

2 Adjusted total asset turnover = Revenues ÷ Adjusted total assets
= 77,794 ÷ 136,953 = 0.57

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Boeing Co. adjusted total asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Total assets 137,012 137,100 138,552 152,136 133,625
Shareholders’ deficit (17,233) (15,883) (14,999) (18,316) (8,617)
Solvency Ratio
Financial leverage1 — — — — —
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets 136,953 137,037 138,475 152,050 132,942
Adjusted shareholders’ deficit (17,063) (15,716) (14,858) (17,392) (8,887)
Solvency Ratio
Adjusted financial leverage2 — — — — —

Based on: 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), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 Financial leverage = Total assets ÷ Shareholders’ deficit
= 137,012 ÷ -17,233 = —

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted shareholders’ deficit
= 136,953 ÷ -17,063 = —

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net loss attributable to Boeing Shareholders (2,222) (4,935) (4,202) (11,873) (636)
Shareholders’ deficit (17,233) (15,883) (14,999) (18,316) (8,617)
Profitability Ratio
ROE1 — — — — —
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net loss attributable to Boeing Shareholders (2,192) (4,946) (5,045) (10,609) (1,959)
Adjusted shareholders’ deficit (17,063) (15,716) (14,858) (17,392) (8,887)
Profitability Ratio
Adjusted ROE2 — — — — —

Based on: 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), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 ROE = 100 × Net loss attributable to Boeing Shareholders ÷ Shareholders’ deficit
= 100 × -2,222 ÷ -17,233 = —

2 Adjusted ROE = 100 × Adjusted net loss attributable to Boeing Shareholders ÷ Adjusted shareholders’ deficit
= 100 × -2,192 ÷ -17,063 = —

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net loss attributable to Boeing Shareholders (2,222) (4,935) (4,202) (11,873) (636)
Total assets 137,012 137,100 138,552 152,136 133,625
Profitability Ratio
ROA1 -1.62% -3.60% -3.03% -7.80% -0.48%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net loss attributable to Boeing Shareholders (2,192) (4,946) (5,045) (10,609) (1,959)
Adjusted total assets 136,953 137,037 138,475 152,050 132,942
Profitability Ratio
Adjusted ROA2 -1.60% -3.61% -3.64% -6.98% -1.47%

Based on: 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), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 ROA = 100 × Net loss attributable to Boeing Shareholders ÷ Total assets
= 100 × -2,222 ÷ 137,012 = -1.62%

2 Adjusted ROA = 100 × Adjusted net loss attributable to Boeing Shareholders ÷ Adjusted total assets
= 100 × -2,192 ÷ 136,953 = -1.60%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Boeing Co. adjusted ROA improved from 2021 to 2022 and from 2022 to 2023.