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Ratio Analysis of Boeing

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Ratio Analysis of Boeing
The Boeing Company operates in the industry of aerospace and defense. The largest aerospace company, Boeing is the #2 maker of large commercial jets (behind rival Airbus) and the #2 defense contractor behind Lockheed Martin. The aerospace and defense industry did suffer the effects of a post-9/11 society. Because of the weakened and fearful tourism market, spending on commercial aircraft did decrease. But recently, revenues have improved considerably as travelers are becoming more comfortable with flying again. Defense expenditures are the leading source of revenue for the US industry. Boeing, despite aerospace spending decreasing, has profited from projects such as the missile interception network and revamp of the US armed forces. The main players in the defense industry are Boeing, Northrop Grumman, Lockheed Martin, General Dynamics and Honeywell International. Below is a table illustrating the revenues of the lead companies in the defense industry, according to Reuters :
Name Revenue (M) Revenue Growth Revenue Growth, 3 years
Industry Average $32,313.8 13.4% 12.7%
The Boeing Company $61,530 14.7% 7.0%
Lockheed Martin Corporation $39,620 6.5% 7.6%
Honeywell International Inc. $32,167 13.4% 10.7%
Northrop Grumman Corporation $30,148 0.3% 4.5%
General Dynamics Corporation $24,063 14.7% 13.8%

As stated in the opening Boeing is the largest manufacturer of commercial jetliners and military aircraft. Boeing makes defense systems, missiles, satellites, and other space vehicles. Boeing has customers in over 90 countries around the world and is one of the largest U.S. exporters. Boeing employs about 150,000 and is based in Chicago, IL. It’s business operations are broken down into two units: Boeing Commercial Airplanes and the other is Boeing Integrated Defense Systems. Boeing Historical Data6
1916
1927
1934

1944
1958
1970

1983
1994
1996
2001

2003

2004

2005 Boeing is created by William E. Boeing in Seattle, Washington



Bibliography: “Aerospace and Defense: Company Rankings” http://www.investor.reuters.com/business/BusRankingsCompanies.aspx?industry=AIRDEF&target=busrankcomp&rankcategory=2. (accessed 24 April 2007). “Aerospace and Defense: Overview.” http://www.investor.reuters.com/business/IndustryOverview.aspx?industry=AIRDEF&target=%2fbusiness%2fbussecindustry%2fbussecindfake%2fbussecindoverview. (accessed 24 April 2007). “Analysts Opinion” http://finance.yahoo.com/q/ao?s=BA. (accessed 24 April 2007). Bryant, James. “The Boeing Company.” http://www.hoovers.com/company-information/--ID__10221--/free-co-factsheet.xhtml. (accessed 24 April 2007). “Yahoo Finance” http://finance.yahoo.com/q?s=LMT. (accessed 24 April 2007). Holmes, Stanley. “Boeings Global Strategy Takes off.” http://www.businessweek.com/magazine/content/06_05/b3969417.htm (24 April 2007). “Boeing Timeline” http://seattletimes.nwsource.com/html/boeingaerospace/2002199799_webtimeline07.html

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