Boeing Corporation Analysis Paper

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BOEING FINANCIAL ANALYSIS

MGT 551 - FINANCIAL MANAGEMENT

Saturday, 20th , 2013

Profile of Boeing:
Boeing is widely recognized as a leader in the commercial jet manufacturing business (Friedman, 2002). The company manufacturers a wide variety of military aircraft and weapon systems including jet fighters, helicopters, rockets, and missiles. The aerospace company provides major components and support to NASA’s Space Shuttle program (Siegel, M., 2002, p.1). Founded in 1916 (Boeing, 2002), Boeing has acquired a number of companies over the years and presently employees about 188,000 people (Siegel, M., p. 1). Boeing and Airbus Integrated Company are the only two companies manufacturing large commercial aircraft (Elia, 2002, ¶ 3).

Boeing Co. (BA) | Income Statement
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The income statement presents information on the financial results of a company's business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

Boeing Co., Consolidated Income Statement
USD $ in millions

 | 12 months ended| Dec 31, 2012| Dec 31, 2011| Dec 31, 2010| Dec 31, 2009| Dec 31, 2008| | Sales of products| 71,234 | 57,401 | 52,586 | 57,032 | 50,180 | | Sales of services| 10,464 | 11,334 | 11,720 | 11,249 | 10,729 | | Revenues| 81,698 | 68,735 | 64,306 | 68,281 | 60,909 | | Cost of products| (60,309)| (46,642)| (42,194)| (47,639)| (41,662)| | Cost of services| (8,247)| (9,097)| (9,489)| (8,726)| (8,467)| | Boeing Capital Corporation interest expense| (88)| (128)| (160)| (175)| (223)| | Costs and expenses| (68,644)| (55,867)| (51,843)| (56,540)| (50,352)| | Gross profit| 13,054 | 12,868 | 12,463 | 11,741 | 10,557 | | Income from operating investments, net| 268 | 278 | 267 | 249 | 241 | | General and administrative expense| (3,717)| (3,408)| (3,644)| (3,364)| (3,084)| | Research and development expense, net| (3,298)| (3,918)| (4,121)| (6,506)| (3,768)| | Gain (loss) on dispositions, net| 4 | 24 | 6 | (24)| 4 | | Earnings from operations| 6,311 | 5,844 | 4,971 | 2,096 | 3,950 | | Other income (expense), net| 62 | 46 | 53 | (24)| 245 | | Interest and debt expense| (463)| (498)| (516)| (339)| (202)| | Earnings before income taxes| 5,910 | 5,392 | 4,508 | 1,733 | 3,993 | | Income tax expense| (2,007)| (1,382)| (1,196)| (396)| (1,341)| | Net earnings from continuing operations| 3,903 | 4,010 | 3,312 | 1,337 | 2,652 | | Net gain (loss) on disposal of discontinued operations, net of taxes| (3)| 7 | (4)| (23)| 18 | | Net earnings| 3,900 | 4,017 | 3,308 | 1,314 | 2,670 | | Noncontrolling interest| –| 1 | (1)| (2)| 2 |

| Net earnings attributable to parent| 3,900 | 4,018 | 3,307 | 1,312 | 2,672 |

Source: Boeing Co., Annual Reports
Item| Description| The company|
Revenues| Aggregate revenue recognized during the period (derived from goods sold, services rendered, insurance premiums, or other activities that constitute an entity's earning process). For financial services companies, also includes investment and interest income, and sales and trading gains.| Boeing Co.'s revenues increased from 2010 to 2011 and from 2011 to 2012. | Earnings from operations| The net result for the period of deducting operating expenses from operating revenues.| Boeing Co.'s earnings from operations increased from 2010 to 2011 and from 2011 to 2012. |...
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