For the years 2005-2009, can you calculate the following for Boeing:

Debt-to-equity ratio

Times-interest-earned ratio

Times-burden-covered ratio

What percentage decline in earnings before interest and taxes could Boeing have sustained in these years before failing to cover?

Interest payments

Interest and principal payments

What do these calculations suggest about Boeing's financial leverage during this period?

Page 3 of 4 ZOOM + BALANCE SHEET ($ millions) 2005 2006 2007 2008 2009 ASSETS Cash & Short-Term Investments 5,966 6,386 9.308 3,279 11.223 Net Receivables 5,613 5.655 6,068 6.027 6,153 Inventories 7,940 8.105 9.56 5.612 16,933 Other Current Assets 2,449 2.837 2,341 1,046 966 Total Current Assets 1,968 22,983 27.280 25,964 $5,275 Gross Plant, Property & Equipment 19,692 19,310 20,18 21,042 21,579 Accumulated Depreciation 11,272 11,635 11,915 12,28 12.795 Net Plant, Property & Equipment 8,420 7,675 8,26 8,762 8,784 Investments at Equity 84 964 1,085 942 974 Other Investments 12,407 11,64 9.803 5.243 5.522 Intangibles 2,799 4,745 5.174 6.332 7.196 Deferred Charges 13,251 Other Assets 1,129 3,786 7,379 5.536 4,302 TOTAL ASSETS 60,058 51,794 58,986 53,779 62,053 LIABILITIES Long Term Debt Due In One Year 1,189 1,381 762 560 707 Accounts Payable 5.124 643 5.714 5.871 7.096 Taxes Payable 556 670 253 41 182 Accrued Expenses 6,590 6,106 6,637 6,169 2,822 Other Current Liabilities 14,729 15,901 18,172 18,28 12,076 Total Current Liabilities 28,188 29,701 31,538 30,92 32,883 Long Term Debt 9,538 3,157 7,455 6,952 12,217 Deferred Taxes 2,067 1,190 Minority Interest 97 Other Liabilities 9,206 ,19 9.799 17,196 14,728 TOTAL LIABILITIES 48,999 47,055 19.982 $5,073 59,925 EQUITY Common Stock 5,061 5.061 5,061 5,061 5,061 Capital Surplus 4.371 4.655 4.757 3.456 3,724 Retained Earnings 15,498 10,236 16,780 9.150 10.869 Less: Treasury Stock 13,871 5,21 17,594 18,961 17,526 TOTAL EQUITY 11,059 4,739 9,004 (1,294) 2,128 TOTAL LIABILITIES & EQUITY 60,058 1,794 58,986 53,77 62.053 Common Shares Outstanding 760.577 757.836 736.681 698.138 726.291 INCOME STATEMENT ($ millions) 2005 006 2007 2008 2009 Sales 54,845 61,530 66,387 50,909 68,281 Cost of Goods Sold 44,757 48,926 51,977 48,950 $5,092 Gross Profit 10,088 12,604 14,410 11,959 3,189 Selling, General, & Administrative Exp 6,433 7.428 7,381 6,852 9,870 Operating Income Before Deprec. .65 5,176 7.029 5,107 ,319 Depreciation, Depletion, & Amortization 1,092 1,158 1,130 1,179 1,273 Operating Profit 2,563 4.018 5,899 3,928 2,046 Interest Expense 713 657 608 524 604 Non-Operating Income/Expense 391 709 827 591 289 Special Items 578 876 Pretax Income 2,819 ,194 6,118 3,995 1,731 Total Income Taxes 257 988 2,060 1.341 396 Income Before Extraordinary Items & Discontinued Operations 2,562 2,206 4.058 2,654 1,335 Discontinued Operations (7 16 18 (23) Adjusted Net Income 2,555 2,215 4,074 2,672 1,312