Return on Capital (ROC)
Return on capital (ROC) is after tax rate of return on net business assets. ROIC is unaffected by changes in interest rates or company debt and equity structure. It measures business productivity performance.
Return on Invested Capital (ROIC)
Boeing Co., ROIC calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net operating profit after taxes (NOPAT)1 | (10,234) | (77) | (2,910) | (2,649) | (8,306) | |
| Invested capital2 | 50,250) | 44,883) | 50,833) | 49,413) | 47,630) | |
| Performance Ratio | ||||||
| ROIC3 | -20.37% | -0.17% | -5.73% | -5.36% | -17.44% | |
| Benchmarks | ||||||
| ROIC, Competitors4 | ||||||
| Caterpillar Inc. | 18.17% | 18.02% | 13.41% | 12.58% | 6.24% | |
| Eaton Corp. plc | — | 10.48% | 8.00% | 7.84% | 5.61% | |
| GE Aerospace | 20.07% | 20.95% | 2.73% | -2.53% | 5.22% | |
| Honeywell International Inc. | 9.91% | 12.37% | 11.54% | 12.33% | 10.94% | |
| Lockheed Martin Corp. | 18.98% | 25.46% | 21.60% | 22.51% | 25.67% | |
| RTX Corp. | 5.82% | 3.68% | 4.11% | 4.41% | -1.38% | |
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).
1 NOPAT. See details »
2 Invested capital. See details »
3 2024 Calculation
ROIC = 100 × NOPAT ÷ Invested capital
= 100 × -10,234 ÷ 50,250 = -20.37%
4 Click competitor name to see calculations.
| Performance ratio | Description | The company |
|---|---|---|
| ROIC | A measure of the periodic, after tax, cash-on-cash yield earned in the business. | Boeing Co. ROIC improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024. |
Decomposition of ROIC
Boeing Co., decomposition of ROIC
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).
1 Operating profit margin (OPM). See calculations »
2 Turnover of capital (TO). See calculations »
3 Effective cash tax rate (CTR). See calculations »
Operating Profit Margin (OPM)
Boeing Co., OPM calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net operating profit after taxes (NOPAT)1 | (10,234) | (77) | (2,910) | (2,649) | (8,306) | |
| Add: Cash operating taxes2 | 508) | 736) | 588) | 676) | (3,337) | |
| Net operating profit before taxes (NOPBT) | (9,725) | 658) | (2,323) | (1,973) | (11,643) | |
| Revenues | 66,517) | 77,794) | 66,608) | 62,286) | 58,158) | |
| Profitability Ratio | ||||||
| OPM3 | -14.62% | 0.85% | -3.49% | -3.17% | -20.02% | |
| Benchmarks | ||||||
| OPM, Competitors4 | ||||||
| Caterpillar Inc. | 22.35% | 20.95% | 17.42% | 19.09% | 11.64% | |
| Eaton Corp. plc | — | 17.76% | 14.81% | 15.90% | 11.40% | |
| GE Aerospace | 24.39% | 17.53% | 4.46% | -2.35% | 12.65% | |
| Honeywell International Inc. | 20.31% | 20.28% | 19.83% | 21.58% | 20.40% | |
| Lockheed Martin Corp. | 10.03% | 13.04% | 11.60% | 11.85% | 13.19% | |
| RTX Corp. | 10.06% | 7.71% | 10.88% | 9.65% | -1.08% | |
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).
1 NOPAT. See details »
2 Cash operating taxes. See details »
3 2024 Calculation
OPM = 100 × NOPBT ÷ Revenues
= 100 × -9,725 ÷ 66,517 = -14.62%
4 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| OPM | The operating profit margin (OPM) is the ratio of pretax economic earnings, or NOPBT, to sales. | Boeing Co. OPM improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024. |
Turnover of Capital (TO)
Boeing Co., TO calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues | 66,517) | 77,794) | 66,608) | 62,286) | 58,158) | |
| Invested capital1 | 50,250) | 44,883) | 50,833) | 49,413) | 47,630) | |
| Efficiency Ratio | ||||||
| TO2 | 1.32 | 1.73 | 1.31 | 1.26 | 1.22 | |
| Benchmarks | ||||||
| TO, Competitors3 | ||||||
| Caterpillar Inc. | 1.07 | 1.15 | 1.03 | 0.87 | 0.72 | |
| Eaton Corp. plc | — | 0.74 | 0.67 | 0.67 | 0.65 | |
| GE Aerospace | 0.93 | 1.29 | 1.10 | 0.99 | 0.63 | |
| Honeywell International Inc. | 0.64 | 0.76 | 0.76 | 0.72 | 0.67 | |
| Lockheed Martin Corp. | 2.47 | 2.46 | 2.48 | 2.34 | 2.33 | |
| RTX Corp. | 0.73 | 0.62 | 0.59 | 0.56 | 0.49 | |
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).
1 Invested capital. See details »
2 2024 Calculation
TO = Revenues ÷ Invested capital
= 66,517 ÷ 50,250 = 1.32
3 Click competitor name to see calculations.
| Efficiency ratio | Description | The company |
|---|---|---|
| TO | The turnover of capital (TO) is the ratio of sales to invested capital. Capital turnover is a function of the efficiency of working capital management and of net fixed assets. | Boeing Co. TO improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024 not reaching 2022 level. |
Effective Cash Tax Rate (CTR)
Boeing Co., CTR calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net operating profit after taxes (NOPAT)1 | (10,234) | (77) | (2,910) | (2,649) | (8,306) | |
| Add: Cash operating taxes2 | 508) | 736) | 588) | 676) | (3,337) | |
| Net operating profit before taxes (NOPBT) | (9,725) | 658) | (2,323) | (1,973) | (11,643) | |
| Tax Rate | ||||||
| CTR3 | — | 111.76% | — | — | — | |
| Benchmarks | ||||||
| CTR, Competitors4 | ||||||
| Caterpillar Inc. | 23.78% | 25.26% | 25.42% | 24.06% | 25.70% | |
| Eaton Corp. plc | — | 20.06% | 19.89% | 26.02% | 24.39% | |
| GE Aerospace | 11.67% | 7.01% | 44.47% | — | 34.06% | |
| Honeywell International Inc. | 23.60% | 19.41% | 23.25% | 20.13% | 20.43% | |
| Lockheed Martin Corp. | 23.33% | 20.72% | 24.95% | 18.89% | 16.51% | |
| RTX Corp. | 20.17% | 22.52% | 36.10% | 18.64% | — | |
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).
1 NOPAT. See details »
2 Cash operating taxes. See details »
3 2024 Calculation
CTR = 100 × Cash operating taxes ÷ NOPBT
= 100 × 508 ÷ -9,725 = —
4 Click competitor name to see calculations.