Boeing Financial Statement Analysis
Financial Statement Analysis Project
The Boeing Company
November 11, 2004
Table of Contents
I. Firm, Industry, and Environment 4
A. Description of firm and environment 4
B. Discussion of competitive environment 6
C. Economic climate and outlook 8
D. Other relevant factors, e.g. governmental regulations, labor relations, litigation, etc. 8
II. Evaluation of Balance Sheet 10
A. Description of asset structure 11
a. Current Assets 11
b. Customer and commercial financing 12
c. Property, plant and equipment, net 12
d. Goodwill and Other acquired intangibles, net 13
e. Prepaid pension expense 13
f. Deferred income tax 13
g. Other assets 14
B. Description of liabilities 14
a. Current Liabilities 14
b. Accrued retiree health care and Accrued Pension plan liability 14
c. Deferred lease income 14
C. Description of capital (equity) structure 15
D. Ratio Analysis of Financial Statements 15
a. Liquidity Ratios 16
b. Debt Management / Leverage Ratios 16
c. Activity Ratios 17
d. Profitability Ratios 18
III. Evaluation of Income Statement 19
A. Profitability measures (from the ratio analysis above) 19
B. Changes in accounts and categories 19
IV. Analysis of Cash Flows 20
A. Ability to generate cash flows in the future 20
B. Capacity to meet obligations for cash 20
C. External financing needs 21
D. Management of investing activities 23
E. Implementation of financing and investing strategies 24
V. Evaluation of Financial Statements 24
A. Common Size Statements 24
a. Common Size Balance Sheet 25
b. Common Size Income Statement 26
B. Short-term debt and liquidity 27
C. Capital structure and long-term solvency 27
D. Operating/sales performance 28
VI. Outlook, Summary, and Conclusions 28
A. Outlook for performance 28
B. Investment potential 28
C. Credit assessment 29
D. Strategies to improve performance 29
E. Summary and conclusions 29
VII. References 30
VIII. Appendix A Calculations 31
I. Firm, Industry, and
The Boeing Company
November 11, 2004
Table of Contents
I. Firm, Industry, and Environment 4
A. Description of firm and environment 4
B. Discussion of competitive environment 6
C. Economic climate and outlook 8
D. Other relevant factors, e.g. governmental regulations, labor relations, litigation, etc. 8
II. Evaluation of Balance Sheet 10
A. Description of asset structure 11
a. Current Assets 11
b. Customer and commercial financing 12
c. Property, plant and equipment, net 12
d. Goodwill and Other acquired intangibles, net 13
e. Prepaid pension expense 13
f. Deferred income tax 13
g. Other assets 14
B. Description of liabilities 14
a. Current Liabilities 14
b. Accrued retiree health care and Accrued Pension plan liability 14
c. Deferred lease income 14
C. Description of capital (equity) structure 15
D. Ratio Analysis of Financial Statements 15
a. Liquidity Ratios 16
b. Debt Management / Leverage Ratios 16
c. Activity Ratios 17
d. Profitability Ratios 18
III. Evaluation of Income Statement 19
A. Profitability measures (from the ratio analysis above) 19
B. Changes in accounts and categories 19
IV. Analysis of Cash Flows 20
A. Ability to generate cash flows in the future 20
B. Capacity to meet obligations for cash 20
C. External financing needs 21
D. Management of investing activities 23
E. Implementation of financing and investing strategies 24
V. Evaluation of Financial Statements 24
A. Common Size Statements 24
a. Common Size Balance Sheet 25
b. Common Size Income Statement 26
B. Short-term debt and liquidity 27
C. Capital structure and long-term solvency 27
D. Operating/sales performance 28
VI. Outlook, Summary, and Conclusions 28
A. Outlook for performance 28
B. Investment potential 28
C. Credit assessment 29
D. Strategies to improve performance 29
E. Summary and conclusions 29
VII. References 30
VIII. Appendix A Calculations 31
I. Firm, Industry, and
References: 2003 http://www.boeing.com/companyoffices/financial/finreports/annual/03annualreport/ Form 10-Q, September 30, 2004 – Boeing