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BA (Boeing Co) ROIC % : -24.16% (As of Sep. 2024)


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What is Boeing Co ROIC %?

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Boeing Co's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2024 was -24.16%.

As of today (2024-10-31), Boeing Co's WACC % is 10.07%. Boeing Co's ROIC % is -7.00% (calculated using TTM income statement data). Boeing Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Boeing Co ROIC % Historical Data

The historical data trend for Boeing Co's ROIC % can be seen below:

* 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.

* Premium members only.

Boeing Co ROIC % Chart

Boeing Co Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -0.79 -10.78 -2.80 -3.48 -0.91

Boeing Co Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
ROIC % Get a 7-Day Free Trial 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 -5.61 3.94 -0.59 -4.40 -24.16

Competitive Comparison of Boeing Co's ROIC %

For the Aerospace & Defense subindustry, Boeing Co's ROIC %, along with its competitors' market caps and ROIC % 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's ROIC % Distribution in the Aerospace & Defense Industry

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

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



Boeing Co ROIC % Calculation

Boeing Co's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2023 is calculated as:

ROIC % (A: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2022 ) + Invested Capital (A: Dec. 2023 ))/ count )
=-821 * ( 1 - -11.82% )/( (99280 + 101458)/ 2 )
=-918.0422/100369
=-0.91 %

where

Boeing Co's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Sep. 2024 is calculated as:

ROIC % (Q: Sep. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2024 ) + Invested Capital (Q: Sep. 2024 ))/ count )
=-22984 * ( 1 - 0.8% )/( (96385 + 92330)/ 2 )
=-22800.128/94357.5
=-24.16 %

where

Note: The Operating Income data used here is four times the quarterly (Sep. 2024) data.

* 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) ROIC % Explanation

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.

There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.

Why is ROIC % important?

Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.

As of today, Boeing Co's WACC % is 10.07%. Boeing Co's ROIC % is -7.00% (calculated using TTM income statement data).


Be Aware

Like ROE % and ROA %, ROIC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.


Boeing Co ROIC % Related Terms

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Boeing Co Business Description

Address
929 Long Bridge Drive, Arlington, VA, USA, 22202
Boeing is a major aerospace and defense firm. It operates in three segments: commercial airplanes; defense, space, and security; and Global services. Boeing's commercial airplanes segment competes with Airbus in the production of aircraft that can carry more than 130 passengers. Boeing's defense, space, and security segment competes with Lockheed, Northrop, and several other firms to create military aircraft, satellites, and weaponry. Global services provides aftermarket support to airlines.
Executives
Theodore Iii Colbert officer: CIO & SVP, Info & Analytics C/O THE BOEING COMPANY, 100 RIVERSIDE PLAZA, CHICAGO IL 60606-1596
Steven M Mollenkopf director 5775 MOREHOUSE DRIVE, SAN DIEGO CA 92121
Howard E Mckenzie officer: Chief Engineer & EVP, ET&T C/O THE BOEING COMPANY, 929 LONG BRIDGE DRIVE, ARLINGTON VA 22202
Sabrina Soussan director BUHLMATTSTRASSE 3, MEGGEN V8 6045
Stephen E Biegun officer: SVP, Global Public Policy C/O THE BOEING COMPANY, 929 LONG BRIDGE DRIVE, ARLINGTON VA 22202
Michael J Cleary officer: Controller C/O THE BOEING COMPANY, 929 LONG BRIDGE DRIVE, ARLINGTON VA 22202
Brendan J. Nelson officer: President, Boeing Intn'l C/O THE BOEING COMPANY, 929 LONG BRIDGE DRIVE, ARLINGTON VA 22202
David L Calhoun director
Brian R Besanceney officer: SVP, Chief Comm Officer C/O THE BOEING COMPANY, 100 N. RIVERSIDE, MC 5003-1001, CHICAGO IL 60606-1596
David L. Gitlin director UNITED TECHNOLOGIES CORPORATION, 10 FARM SPRINGS ROAD, FARMINGTON CT 06032
Stephanie F Pope officer: President & CEO, BGS C/O THE BOEING COMPANY, 100 RIVERSIDE PLAZA, MC 5003-1001, CHICAGO IL 60606-1596
Lawrence W Kellner director 1600 SMITH ST., HQSEO, HOUSTON TX 77002
Edward Lee Dandridge officer: SVP, Communications C/O THE BOEING COMPANY, 100 RIVERSIDE PLAZA, MC 5003-1001, CHICAGO IL 60606-1596
Ziad S Ojakli officer: EVP, Gov't Ops FORD MOTOR COMPANY, 1350 I ST. NW, WASHINGTON D.C. DC 20005
David Leon Joyce director GENERAL ELECTRIC COMPANY, 5 NECCO STREET, BOSTON MA 02210