Comparative Financial Leverage Analysis of Boeing and Airbus: Evaluating Risk and Resilience through Key Coverage Ratios

This study explores the financial leverage strategies of Boeing Commercial Airplanes and Airbus, two dominant players in the global aerospace industry, over a five-year period (2020–2024). The analysis is centered on three key financial ratios: Debt-to-Equity Ratio, Interest Coverage Ratio, and Fixed Charge Coverage Ratio. These metrics offer insights into each company's capital structure, debt management, and overall financial resilience. The findings reveal a contrast in financial approaches: Boeing’s higher debt levels and fluctuating interest coverage signal a more aggressive leverage strategy, while Airbus demonstrates more stability and cautious debt utilization. The Fixed Charge Coverage Ratio further highlights differences in the ability to meet fixed financial obligations, such as leases and debt payments. By comparing these leverage indicators, the study provides valuable insights into how financial structure influences strategic decision-making and risk tolerance in the aerospace sector.