Financial Analysis for Boeing

Good Essays
Topics: Boeing, Airbus
History
Looking at the brief history of Boeing, the company was first founded in Puget Sound, Washington in 1916 by William Edward Boeing.
After sucessfully selling military aircrafts adapted for troop transportation in the 1950’s and introducing commercial aircrafts model 707, 727 followed by 737, Boeing has since then become a leading producer of military & commercial aircraft.
After a few number of mergers & acquisitions to become the world’s largest, most diversified aerospace company, Boeing enterprise now include: North American Aviation, McDonnell Douglas, Rockwell International, Hughes Space & Communications, and Jeppesen.
Financial Analysis
1. As you can see from the graphs, over the last three years, Boeing has achieved great performance in its revenue and profit. From 2004 to 2006, Boeing’s revenue increased by $10.13 billion while its profit increased by $3.7 billion.
Also Boeing managed to raise its total current assets, which increased by $5.6 billion over the years. We might find it alarming that Boeing has a large sum of total debts, however we note that the sum has significantly decreased by about 22% over the year span 2004 – 2006.
These healthy financial position were accomplished by soaring on the return on assets and investment. These financial figures portray effective management and business strategy carried out by Boeing.
2. The Earnings per share and dividend per share graph also showed increasing trends throughout 2004 - 2006.
Comparing the financial ratios of Boeing with the rest of its competitors, we can see that Boeing is the top company in the industry. The return on equity measures how much profit is generated on shareholders’ equity and as we can see this figure is 46.74%. This is almost 2x higher than the average of the industry and thus demonstrates that Boeing has a distinguish future ability to grow earnings compared to its competitors in the same industry.
The Net Profit Margin shows the effectiveness of Boeing’s

You May Also Find These Documents Helpful

  • Powerful Essays

    Boeing Financial Analysis

    • 6640 Words
    • 27 Pages

    Boeing Financial Analysis The Boeing Company was formed in 1916 by William E. Boeing in Seattle, Washington. The following year they had a twenty eight person payroll which included pilots, carpenters, boat builders and seamstresses. The lowest wage was fourteen cents an hour, while the company's top pilots made two to three hundred dollars a month. When the company was short on money, William Boeing used his own financial resources to guarantee a loan to cover all wages, which was a total of about…

    • 6640 Words
    • 27 Pages
    Powerful Essays
  • Powerful Essays

    Boeing Financial Analysis

    • 9354 Words
    • 38 Pages

    The Boeing Company Financial Analysis 2007-2011 Group 1 Financial Statement Analysis, FIN 506, Winter 2013 Professor Steve Ranger Table of Contents I. Introduction to Boeing 3-5 II. Overview of Industry 5-7 III. Management Analysis 7-10 IV. Presentation of Financial Reports 10-16 V. Common Sized Presentation of Restated Reports 17-22 VI. Detailed Discussion IV & V 23-30 VII. Liquidity Short-Term Ratios & Analysis 30-33…

    • 9354 Words
    • 38 Pages
    Powerful Essays
  • Powerful Essays

    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.…

    • 9007 Words
    • 37 Pages
    Powerful Essays
  • Powerful Essays

    provide overall financial statement overview of The Boeing Company using the knowledge obtained during the Financial Management course. The main question of the study is how financially well the company is at the moment and what investment expectation it generates on the market nowdays. The Boeing Company background The company was originally founded by William Boeing on July 15, 1916, as "The Pacific Aero Products Company". Two years later it was renamed into “The Boeing Company”, on May…

    • 4587 Words
    • 19 Pages
    Powerful Essays
  • Powerful Essays

    Financial Statement Analysis Western Michigan University Department of Accountancy Fall 2013 By: Adam A. Marshall Introduction: The following is a careful, financial statement analysis of two competing companies, Boeing Corporation (Boeing) and Lockheed Martin Corporation (Lockheed), in the aircraft, aerospace and defense industries. The format of the following paper coincides with the financial statement analysis process, as discussed in Financial Reporting…

    • 4648 Words
    • 16 Pages
    Powerful Essays
  • Satisfactory Essays

    The Boeing Company Analysis

    • 15807 Words
    • 64 Pages

    ADVANCED FINANCE CORPORATE ANALYSIS The Aerospace & Defense Industry The Boeing Company Table of Contents EXECUTIVE SUMMARY 4 1. PRESENTATION OF THE BOEING COMPANY 5 1.1 Industry Analysis 6 1.2 Business of The Boeing Company 7 1.3 Origin and History’s Timelines of The Boeing Company 8 1.4 Management and Organizational Structure of The Boeing Company 11 1.5 The Corporate Strategy of The Boeing Company 14 2. THE SWOT ANALYSIS OF THE BOEING COMPANY 17 2.1. Strengths 17 2.2. Weaknesses…

    • 15807 Words
    • 64 Pages
    Satisfactory Essays
  • Best Essays

    Boeing Bond Analysis

    • 3010 Words
    • 13 Pages

    Boeing Bond Analysis Presented to Dr. ----- Prepared by Filipe Ferro October 9, 2012 Table of Contents Boeing Company 3 Bond Issue 3 Unsystematic Risk 4 Principal Repayment 4 Debt to Invested Capital 4 Debt to Equity 4 Current & Quick Ratios 5 Interest Repayment 5 Times Interest Earned 5 Credit Position 6 Competitor Analysis 6 General Dynamics 6 Northrop Grumman 7 Systematic Risk 7 Market Responsiveness 7 Duration 8 Modified Duration 9 Accuracy of Rating 9…

    • 3010 Words
    • 13 Pages
    Best Essays
  • Powerful Essays

    Boeing Startegic Analysis

    • 6997 Words
    • 28 Pages

    Dynamics of Strategy Evaluation of external business environment of Boeing A critical assessment of the strategic resource capability (strategic fit) Provide detailed recommendations after assessment of the feasibility, acceptability and suitability of Boeing A detailed implementation plan NOTE: SEE APPENDICES FOR DETAILED ANALYSIS For Assignment or Dissertation Help, Please Contact: Muhammad Sajid Saeed +44 141 4161015 Email: tosajidsaeed@hotmail.com Skype ID: tosajidsaeed TABLE…

    • 6997 Words
    • 28 Pages
    Powerful Essays
  • Good Essays

    Boeing Business Analysis

    • 1109 Words
    • 5 Pages

    Boeing Business Analysis MGT/ 521 10/10/11 Boeing Business Analysis Before take the decision whether or not invest money in a company it is imperative to analyze the overall situation of the company. Boeing was selected for study because, as representing American big business at the millennium, the company was reputable an unsullied by financial scandals. Boeing is engaged in the design, development, manufacturing, sale and support of the commercial jetliners, military aircraft, satellites…

    • 1109 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    Boeing Company Analysis

    • 15956 Words
    • 64 Pages

    Boeing [pic] Presented by: Urvishkumar Patel Amitkumar Patel Bhavikkumar Patel Manojkumar Patel Vishal Patel Jonathan Mayes MG - 640 Management Policy Dr. Santanu Borah July 27, 2008 TABLE OF CONTENTS INTRODUCTION 5 Company Overview 5 Boeing Commercial Airplanes 5 Boeing Integrated Defense Systems 6 Boeing Capital Corporation 6 Background 7 Sales/Operations 9 Constituent Contributions to Corporate Portfolio and Revenue 12 Market Share, Revenues…

    • 15956 Words
    • 64 Pages
    Powerful Essays