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Financial Ratio Quarterly Trend Analysis

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Submitted By jmpapcun24
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Pages 9
FIN 6406
A Financial Ratio Quarterly Trend Analysis of:
The Boeing Company
BA
Listed on New York Stock Exchange
Prepared for:
Dr. Deanne Butchey
Corporate MBA Program
Florida International University
By:
Justin Papcun

Computations

Financial Trend Comparison

Liquidity: The Boeing Company financial data shows that the company is in place to settle up its obligations in the short term business strategy. As it appears right now, 1.20 is the current ratio and the company’s assets offset its liabilities by 1:2. The quick ratio of 0.37 is lower than the current ratio due to the variance from competition forming from the industry average. The current ratio posted a value of 1 or above consistently, but the same cannot be said for the quick ratio which posted below the value one for Q1-Q4. This decline comes from a recession, a decrease in airline traffic, and the instability of fuel cost. Despite this the current ratio was able to increase value while the quick ratio decreased while still posting a positive number. This was due to an inventory and production decrease. In current liabilities to inventory sector, the numbers did not suffer. In Q1-Q4 Boeing did not post a value below 1, varying between 1.13-1.21. The cash ratio saw numbers between 0.13 and 0.14 for Q1-Q3, and increasing to a 0.21 for Q4.

Assets Utilization: This asset ratio shows Boeing is competently generate profitable sales revenues by properly using investments. Looking at the ratio turnover, you can see the company posted a 1.94 and Boeing would like to see this number increase with future quarters. The annual ratio of 1.15 shows that the company can generate sales and double the dollar amount effectively spent in assets. Boeing with their fixed asset turnover of 8.25 was recorded for the year. In Q1 this number was 1.99 which resulted in a ratio increase of 4 times. Moving to

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