Similar to all large companies, Boeing operates on debt to fund their operations. When airlines and regulators parked the 737 Max airplane it had an immediate impact on Boeing. Even though Boeing has multiple earnings streams, the 737 Max was expected to the gravy train for years to come. The problem at Boeing is not a simple software fix, however next year the plane is expected to fly again. In the mean time according to an article by Sanjana Shivdas of Reuters debt rating agencies Fitch and Moody’s have lowered their outlooks to negative from stable. It may change a year after the plane flies and the order book fills up.
As of March 31, Boeing had total debt of $14.7 billion, which will now become more expensive to roll over. Another concern is what concessions will Boeing have to give to the airlines for the non use of their planes as they had to cut flights.
Linking to dividend paying stocks, while companies talk about safety and quality, every once in a while something does not add up. When they do not add up more costs including reputation amd brand awareness are added. It is easier to do it right the first time.
There are more questions than answers, till the next time- to raising questions.