Boeing's got a big cash burn problem — but it's still better off than many corona-hit companies

A double, wouble-whammy... Boeing's dealing with it. The plane-making giant posted its 2nd consecutive quarterly loss and burned $4.7B in 3 months. Last year, Boeing enjoyed positive cash flow — more $$$ was coming in than out. But to start 2020 it burned a $4.7B-sized hole. Investors were actually relieved — given Boeing's 2 major issues, they were expecting losses to be even worse:

• Coronavirus: Airlines aren't ordering planes because nobody's flying. Boeing's plane deliveries dropped 66% this quarter, from 149 last year to just 50 this year.
• 737 Max: The disastrous plane model was grounded after 2 crashes and now drains Boeing's wallet, piling up in billions of losses (picture hundreds of planes stuck in a parking lot).

Feeling the (cash) burn... Spending more than you make is not sustainable forever. The more cash you burn each month, the quicker your cash pile is going to run out.

• Like people, companies have expenses that they have to pay each month, even if they're not bringing in any money. Think rent, debt payments, and "keep-the-lights-on" expenses.
• Boeing is kind of like someone who got laid off, but still has to pay rent, food, and utility bills. That's why it ditched dividends and is now cutting 10% of its 161K employees.