Boeing is even worse at financial engineering than they are at aircraft engineering
Boeing is experiencing a potentially terminal slump. Between losses due to its 737 Max scandal (a self-inflicted injury), and the dropoff in travel during the pandemic, it has had to draw down its entire line of credit and institute a hiring freeze.
Obviously, Boeing can't be blamed for the pandemic.
But you know what is *absolutely* the company's fault? Its financial engineering.
Since 2013, Boeing squandered $43 *billion* on stock buybacks, whose sole purpose was to goose its share-price.
As Wolf Richter writes, Boeing, this "master of financial engineering – instead of aircraft engineering – blew, wasted, and incinerated $43.4 billion on buying back its own shares."
The company just had to borrow $13.825B. Its shares are down 46% since March 2019.
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