Boeing Financial Statement Analysis
Essay Preview: Boeing Financial Statement Analysis
Report this essay
Financial Statement Analysis Project
The Boeing Company
November 11, 2004
Table of Contents
Firm, Industry, and Environment
Description of firm and environment
Discussion of competitive environment
Economic climate and outlook
Other relevant factors, e.g. governmental regulations, labor relations, litigation, etc.
Evaluation of Balance Sheet
Description of asset structure
Current Assets
Customer and commercial financing
Property, plant and equipment, net
Goodwill and Other acquired intangibles, net
Prepaid pension expense
Deferred income tax
Other assets
Description of liabilities
Current Liabilities
Accrued retiree health care and Accrued Pension plan liability
Deferred lease income
Description of capital (equity) structure
Ratio Analysis of Financial Statements
Liquidity Ratios
Debt Management / Leverage Ratios
Activity Ratios
Profitability Ratios
Evaluation of Income Statement
Profitability measures (from the ratio analysis above)
Changes in accounts and categories
Analysis of Cash Flows
Ability to generate cash flows in the future
Capacity to meet obligations for cash
External financing needs
Management of investing activities
Implementation of financing and investing strategies
Evaluation of Financial Statements
Common Size Statements
Common Size Balance Sheet
Common Size Income Statement
Short-term debt and liquidity
Capital structure and long-term solvency
Operating/sales performance
Outlook, Summary, and Conclusions
Outlook for performance
Investment potential
Credit assessment
Strategies to improve performance
Summary and conclusions
References
VIII.
Appendix A – Calculations
Firm, Industry, and Environment
Description of firm and environment
The Boeing Company is the worlds leading aerospace company and a top US exporter in terms of sales. Boeing provides products and services to customers in 145 countries.
The Boeing Company (Boeing Corporation) is, perhaps, best known for its line of civilian aircraft, the most famous being the Boeing 747 Boeing is the worlds second leading weapons manufacturer and the main contractor for the Space Shuttle.
The Boeing Company operates in four principal segments: Commercial Airplanes, Military Aircraft and Missile Systems, Space and Communications and Boeing Capital Corporation (BCC). Commercial Airplanes operations principally involve development, production and marketing of commercial jet aircraft and providing related support services. Military Aircraft and Missile Systems operations principally involve research, development, production, modification and support of military aircraft, both land-based and aircraft-carrier-based, as well as helicopters and missiles. Space and Communications operations principally involve research, development, production, modification and support of space systems, missile defense systems, satellites and satellite launching vehicles, rocket engines and information and battle management systems. BCC is primarily engaged in the financing of commercial and private aircraft and commercial equipment.
Among the models Boeing has produced are the B-17 Flying Fortress, 1935; the B-52 Stratofortress (1952); the Chinook helicopter (1961); the first jetliner, the Boeing 707 (1957); the jumbo jet or Boeing 747 (1969); the jetfoil (1975); and the 777-300 jetliner (1997).
The company was founded in 1916 near Seattle, Washington, by William E Boeing, as the Pacific Aero Products Company. Renamed the following year, the company built its first seaplane and in 1919 set up an airmail service between Seattle and Victoria, Canada.
Boeing bought US aircraft manufacturers McDonnell Douglas in 1997 for $16.3 billion, to create the worlds largest aerospace company, manufacturing about three-quarters of the worlds commercial airliners. The same year it unveiled its 777-300 jetliner, the worlds longest and largest twin-engine aircraft of its kind. The company employed 198,900 people worldwide in 2001.
The Boeing Company is the 800-pound gorilla of US aerospace. The worlds largest aerospace company, Boeing is neck-and-neck with Airbus as the #1 maker of large commercial jets, and is the #3 defense contractor behind Lockheed Martin and Northrop Grumman. It has two major segments: Commercial Airplanes and Integrated Defense Systems. Boeings commercial