Despite the above mentioned strengths, the company has some significant weaknesses as well. The main weakness of the company that is reflective through the analysis is that the company has a declining profitability. The company has been depicting increased profits from increased sales to the customers in the aerospace market however the margin on the sales made are decreasing annually by 5-6 percent on an annual basis. This presents the weakness of the company pertaining to having a declining profitability level. While currently the company is still profitable, the continuing rates of decreasing margins on the sales can lead to disruptions and hindrances in the growth rate of the company as well as the growth plans of the Boeing Company.
The second main weakness that has been observed for the company is the unusual high level of debt that the Boeing Company tends to bear. The projects that are handled by the company are extensive and high cost and investment based. As a result the Boeing Company has been funding its research as well as its projects through gearing and taking loans from banks and financial institutions. This has made the company less liquid while carrying an unusual level of high debt burden. Additionally even the equity to debt ratio for the company is more than 150 percent which is much higher than the industry average of 55 percent. This is a disadvantage of the company as it limits the loan/ funding attaining capability of the company with an already existent significant level of debt thus putting a constraint on future projects.
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