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Boeing stock has a very important fundamental key metric that is negative

Boeing stock news

At 2:56 PM, Tuesday, April 7, 2020, Eastern Time (ET) Boeing stock price is at 140.63-8.14 (-5.47%). The Boeing Company (BA) stock has a very important fundamental key metric that many investors and traders seem to ignore. What is this fundamental key metric?

A negative total stockholders’ equity. Total stockholders’ equity for Boeing stock is -8,617,000 (All numbers in thousands) as of 12/30/2019, shown on the balance sheet.

Source: Yahoo Finance

Why is this negative total stockholders’ equity important for Boeing stock?

“Shareholders’ equity represents a company’s net worth (also called book value) and measures the company’s financial health. If total liabilities are greater than total assets, the company will have a negative shareholders’ equity. A negative balance in shareholders’ equity is a red flag that investors should investigate the company further before purchasing its stock.”


Why Does Negative Shareholder Equity Happen?

“When shareholder equity turns negative, frequently this is a sign of trouble. Generally you see negative equity most often when there are accrued losses that sit on the balance sheet.”


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