The Boeing Company (NYSE:BA) was trading at around $193 on October 5, down 11.91% over twelve months. Boeing reported net income of $2.09 billion over the past twelve months. Its EBITDA over the same period was negative $2.9 billion.
Those two figures describe the same year and point in opposite directions. Only one of them tells you what the business did.
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Start with the figure that describes the aircraft business itself. Boeing's operating margin is 0.00%. On $93.99 billion of revenue, building and selling airplanes earned nothing.
That is not a rounding problem. Gross profit was $4.43 billion on that revenue, under five percent for a manufacturer, which means the cost of building the aircraft very nearly equals what customers pay for them.
#same
Those two figures describe the same year and point in opposite directions. Only one of them tells you what the business did.
READ ALSO: GE Aerospace (GE) vs. RTX (RTX): Which Is the Better Stock to Buy?
Start with the figure that describes the aircraft business itself. Boeing's operating margin is 0.00%. On $93.99 billion of revenue, building and selling airplanes earned nothing.
That is not a rounding problem. Gross profit was $4.43 billion on that revenue, under five percent for a manufacturer, which means the cost of building the aircraft very nearly equals what customers pay for them.
#same
5 days ago
