StTim wrote:By every definition I was taught at Business school Boeing has a weak balance sheet. Indeed historically you could say they were insolvent,
Now I do not believe Boeing is anywhere near to going broke. Times have obviously changed.
Why could you say they were insolvent?
What is 'Insolvency'
Insolvency is when an organization, or individual, can no longer meet its financial obligations with its lender or lenders as debts become due. Before an insolvent company, or person, gets involved in insolvency proceedings, it will likely be involved in informal arrangements with creditors, such as making alternative payment arrangements. Insolvency can arise from poor cash management, a reduction in cash inflow forecasts or from an increase in expenses.
Or this definition
In legal terminology, the situation where the liabilities of a person or firm exceed its assets. In practice, however, insolvency is the situation where an entity cannot raise enough cash to meet its obligations, or to pay debts as they become due for payment. Properly called technical insolvency, it may occur even when the value of an entity's total assets exceeds its total liabilities. Mere insolvency does not afford enough ground for lenders to petition for involuntary bankruptcy of the borrower, or force a liquidation of his or her assets.
Read more: http://www.businessdictionary.com/defin ... vency.html