Is BA a safe investment?
7/30/2025 12:43am
**Boeing's financial health indicates caution is warranted**:
1. **High Debt-to-Equity Ratio**: Boeing's debt-to-equity ratio stands at -16.13%. A negative ratio suggests that the company has more liabilities than assets, which can be a red flag for investors regarding the company's financial stability.
|code|Ticker|Name|Date|Free Cash Flow|Debt-to-Equity Ratio|Operating Cash Flow|market_code|
|---|---|---|---|---|---|---|---|
|BA|BA.N|The Boeing|2024 Q3|-6.485996231E9|-2.446736270265682|-1.345E9|169|
|BA|BA.N|The Boeing|2024 Q4|-2.969499916E10|-13.76188042922841|-3.45E9|169|
|BA|BA.N|The Boeing|2025 Q1|-1.097300002E10|-16.125714285714285|-1.616E9|169|
|BA|BA.N|The Boeing|2025 Q2|-6.933999905E9|||169|
2. **Negative Free Cash Flow**: The company has a negative free cash flow of $2.29 billion and a negative operating cash flow of $1.62 billion. Negative cash flows can indicate that the company is generating more cash outflows than inflows, which could lead to liquidity issues.
3. **Low ROE and ROA**: The return on equity (ROE) and return on assets (ROA) are not provided in the available data. However, a low ROE could suggest that the company is not generating sufficient profits from its equity or assets.
4. **Dividend Yield**: The dividend yield is not provided, which makes it difficult to assess the company's dividend payments as a percentage of the stock price.
5. **Stock Price Target**: Despite the challenges, Barclays has raised its price target for Boeing to $255, which is a 12.7% premium over the current trading price. This suggests that some analysts remain optimistic about the company's future performance.
In conclusion, while there are some positive indicators, such as the revenue increase and the potential for future growth, the negative cash flows and high debt levels suggest that Boeing is not a completely safe investment at this time. Investors should closely monitor the company's financial performance and consider the associated risks before making an investment decision.