On comparing Boeing and Airbus the last time, we still didn’t have the Airbus numbers for Q2 2019. Of course this was as interesting as the earlier periods, because of the 737Max ban, affecting Boeing heavily. The question was whether Airbus would profit from the misery of its competitor. Certainly we wouldn’t expect a heavy loss for Airbus like the one Boeing suffered, but the profit going up, that’s a different story!
Photo by adueck on Pixabay
The problem is that building an aeroplane takes a while and the impact in the books all comes down to the moment of the actual sale (or payment, but companies usually will use the accrual system). A full order-book will be in the annual report somewhere, but the income-statement will only show real purchases by customers. If there is no capacity left, it will also take time to adjust the facilities. Let’s have a look at the complete graph, now holding Q2 2019 for Airbus as well.
Double-clicking the screenshot will open the 3D-graph in your browser. For maniputalion of this 3D-graph: Clicking the right mouse-button, moving the mouse up and down will zoom the graph in and out. Clicking left and moving the mouse will tilt the graph in different directions (or move the observer’s viewpoint around a fixed graph – it’s relative of course). Double clicking in the graph translates it and moves the centre at the same time. As a result the way the graph tilts will change. Just try it. If you don’t know how to get the normal position back, just refresh the graph.
Again, Q2 2019 is in the back. It’s immediately clear that Airbus shows a profit as the “roof” is green. The roof is rather thin, but the contrast with the thick red roof for Boeing is clear. Comparing Q2 2018 and 2019 for both Boeing and Airbus would also be interesting. From the graph we can see sales are pushed a little bit at the end of the year, boosting Q4 at the expense of the next Q1. Turning the graph sidewards we can look at both revenue and profit or loss.
In the real 3D-graph the markers for the companies and periods are in the graph, but in a simple screenshot only one view is available. That’s why some information was added. Now we can see for Airbus Q2 2019 was certainly better than Q2 2018, but for Boeing the opposite applies: less revenue and a loss. Looking at the real 3D-graph the balance seems more or less unchanged and – as mentioned in the previous post – very similar for both companies. Yet the total liabilities went up a little bit for Boeing, but down for Airbus. For Boeing they even exceeded the total assets (the equity becoming negative) but for Airbus it was the other way round. The differences are really small and it’s still amazing how similar the companies are from this financial point of view.
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