philidor
in service - 6 years
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Post by philidor on Mar 21, 2017 9:13:16 GMT 1
I believe production of the 787-10 is taking a temporary toll, even though Boeing will not say so.
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kronus
in service - 1 year
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Post by kronus on Apr 12, 2017 15:12:23 GMT 1
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Post by addasih on Apr 26, 2017 21:49:53 GMT 1
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Post by stealthmanbob on Apr 26, 2017 23:36:37 GMT 1
So they need produce another 1200 B787s to break even !
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sciing
in service - 1 year
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Post by sciing on Apr 27, 2017 6:35:36 GMT 1
So they need produce another 1200 B787s to break even ! Deffered Cost has quite nothing to do with profitability! You do not need to be at 0$ to break even! Boeing is "profitable" now and more important the 5 years ago, because they defffer Cost! The simple accounting formula for dummies: Profi=Revenue-Cost. And the same with deffered cost: "Profit"=Revenue-Planed Cost Planned Cost=Real Cost-Deffered Cost "Profit"=Revenue+Deffered Cost-Real Cost At the moment Boeing is reducing the Deffered Cost, so they make less "Profit" than their real Profit. So it is quite strange that the concerns are now! The got cash now! But if you look on the formula, you don't know the Revenue, you don't know the Planed cost, so you can say nothing about profit and profibality! But one think is sure the Planed Cost cost are much lower than the Revenue! So you clearly do not to be at 0 Deffered Cost to be profitable!
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s543
in service - 2 years
Posts: 3,957
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Post by s543 on Apr 27, 2017 9:12:36 GMT 1
Well - to put it simply - deferred cost is a cost you will pay sometimes in the future but ultimately you have to pay it - those are money already SPENT !!!!
So for us simple people - it might be better called DEBT - it is exactly the same !
So once more they have a DEBT of close to $27 bn and they work on getting rid of it.
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philidor
in service - 6 years
Posts: 8,950
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Post by philidor on Apr 27, 2017 10:37:18 GMT 1
Well - to put it simply - deferred cost is a cost you will pay sometimes in the future but ultimately you have to pay it - those are money already SPENT !!!! So for us simple people - it might be better called DEBT - it is exactly the same ! So once more they have a DEBT of close to $27 bn and they work on getting rid of it. Sorry, s543, it has NOTHING to do with a debt : all deferred costs have already been fully paid (that's a huge difference with a debt !), but not yet accounted for in Boeing's profit and loss statements. The consequences of the deferral are that Boeing's accounts in the last seven to eight years have shown much more profit than they otherwise would have, that Boeing has paid more taxes and (likely) more dividends, and that bonuses have been boosted. In the next few years, the contrary will be true : Boeing's profits will be deflated, taxes, dividends and bonuses will be reduced. In the long run, the company stands penalised by paying taxes and bonuses earlier than it should. It may also be paying out larger bonuses and (possibly) dividends than it should. More importantly, accounts presently do not show to what extent equity has been depleted. The policy of paying out dividends and buying back shares now is consensual whereas a more conservative approach might be advisable.
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s543
in service - 2 years
Posts: 3,957
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Post by s543 on Apr 27, 2017 22:08:46 GMT 1
Well - to put it simply - deferred cost is a cost you will pay sometimes in the future but ultimately you have to pay it - those are money already SPENT !!!! So for us simple people - it might be better called DEBT - it is exactly the same ! So once more they have a DEBT of close to $27 bn and they work on getting rid of it. Sorry, s543, it has NOTHING to do with a debt : all deferred costs have already been fully paid (that's a huge difference with a debt !), but not yet accounted for in Boeing's profit and loss statements. The consequences of the deferral are that Boeing's accounts in the last seven to eight years have shown much more profit than they otherwise would have, that Boeing has paid more taxes and (likely) more dividends, and that bonuses have been boosted. In the next few years, the contrary will be true : Boeing's profits will be deflated, taxes, dividends and bonuses will be reduced. In the long run, the company stands penalised by paying taxes and bonuses earlier than it should. It may also be paying out larger bonuses and (possibly) dividends than it should. More importantly, accounts presently do not show to what extent equity has been depleted. The policy of paying out dividends and buying back shares now is consensual whereas a more conservative approach might be advisable. True in the letter but in the reality where did they got the money for those HUGE expenses spent - and "paid" to employees, subcontractor etc. ... They did not had it in a pocket to spend They had to borrow them somewhere...... - and for sure they did not got them from the shareholders ! So the deferred costs were of course implemented in order to look good and pay the dividends and bonuses - no question there - but it was a shortsighted step causing for sure real pain in the future..... I am not sure such a thing is allowed in Europe ? You know probably better !
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kronus
in service - 1 year
Posts: 3,144
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Post by kronus on Jul 10, 2017 16:27:37 GMT 1
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Post by Jkkw on Jul 11, 2017 8:50:44 GMT 1
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