...American Corporate Analysis ~ Boeing Co. Sheryl Stryker, Ruthie Williams, Kareem Campbell, Tamara Loken, Evelina Delgado ACC/561 December 09, 2014 Dr. Deborah Adkins Introduction Boeing was founded in 1916 in Washington State. They are the world’s largest aerospace company and leading manufacturer of commercial jetliners, a top U.S. exporter, which services customers in 150 countries, employs more than 169,000 people across the U.S. In addition to providing there services they represent one of the most diverse and talented workforces in the world. The journey of Boeing’s history includes many strategic mergers and acquisitions to become prevalent. Boeing continues to introduce these practices in order to drive the financial results and withstand the competition. In order to conduct a comparative analysis for Boeing, and to measure its profitability and liquidity, a vertical and horizontal analysis along with financial ratios will be calculated explaining and interpreting the past two reporting years with comparison to Airbus. Horizontal Analysis A comparative analysis involves analyzing financial statements that utilize comparative and basic tools. Intercompany and intracompany horizontal analysis will be performed on both companies. In addition, an evaluation of Airbus and Boeing’s balance sheet and income sheets data for fiscal years 2012 and 2013 will be reviewed using a horizontal analysis. For instance, by using 2012 as the base...
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...Peer Benchmark Report Boeing Co, February 13, 2012 Boeing Co Financial health declining, but still very strong Financial Period: Dec 31, 2011, (fiscal YE 2011) FHR: 82 Risk Level: Low Risk Annual Delta: -1 rating points Quarterly Delta: Flat Ticker: BA Table 1: Financial Health Rating (FHR) Financial Period End Financial Health Rating Annual Delta Publication Date: February 13, 2012 Sector: Aerospace and Defense (61 firms) History 2008 12/31/08 69 -14 2009 12/31/09 66 -3 2010 12/31/10 83 17 Current 2011 12/31/11 82 -1 Sector 2011 9/30/11* 59.1 2.0 Low Risk (80 – 100) Moderate Risk (60 – 79) Medium Risk (40 – 59) * 9/30/11 represents the most frequent period end date current for companies in the sector. High Risk (20 – 39) Very High Risk (0 – 19) Figure 1: FHR Trend, YE 2008 to YE 2011 Boeing Co's Financial Health Rating (FHR™) was a very impressive 82 (0=worst, 100=best) for the four quarters ending December 31, 2011, and represents a 1 point downgrade as compared to a year earlier. 100 80 60 Sector FHR Investment Grade Threshold FHR 40 20 0 Mar-09 Sep-09 Mar-10 Sep-10 Mar-11 Sep-11 Boeing Co is currently rated higher than the sector average, at 82 compared to 59.1. The orange line in Figure 1 above represents the equal weighted average for the sector. Section 1: Boeing Co's Peer Ratio Analysis 2008 2009 17.20 1.10 2.11 1.07 0.56 5.81 6.25 19.69 109.31 45.81 32.89 n/a n/a -0.21 2010 19.38 0.94 4.82 1.15 0.46 4...
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...breaking your complex overwhelming tasks into small manageable ones –- then starting on the first one." Mark Twain Boeing was founded in 1916 by William E. Boeing (1881-1956). Currently Boeing is the world’s largest aerospace company and the principal maker of commercial jet transports. Boeing leads the way in developing the single-wing planes in the 1930s; and the first U.S. jetliner, the Boeing 707. Boeing is also a leader in space technology, defense aircraft and systems, and communication systems. According to Boeing successful startup airlines must begin with a sound business plan. Boeings established plan of action has been so successful they publish a guide for starting and running competitive business. Boeing’s detailed planning document typically includes: * Analysis of the market and competition * Brand positioning * Description of the business and opportunity * Details about the operation * Management team biographies * Discussion of risks and obstacles * Pro forma financial statements/projections * Capitalization plan * Brand development * Implementation strategy. (Business Plan, para. 1). Major Components of a Typical Startup-Airline Business Plan include an Executive summary, which covers the business concept including revenue and cost, what market is to be reached, competitive strategies and financial considerations. The Industry and Target market and Competitive analysis will examine Demographics / population, take...
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...Boeing Corporation I am interested in Boeings newest aircraft which is the 787 Dreamliner. The Dreamliner is one of the largest planes flying today. There are 750 Dreamliners scheduled to be delivered in the coming years. It will also be interesting to follow this company for the remainder of the class to find out how this new airliner will compete against the Airbus and to find out how Boeing will deal with the immediate challenges of the battery problems on the Dreamliner. http://www.bizjournals.com/seattle/stories/2003/01/06/focus15.html Another reason I chose Boeing is that I would like to find out in how huge corporation can stay successful for so many years. I hope that I can take the lessons that I learn from studying Boeing and be able to apply them in my own job with the US Government. Boeing is a publicly traded company on the New York Stock Exchange. 7.725 9.981 If you were to sell a one share of Boeing stock today, it would be worth $9.981. This is a $2.26 increase in value from one year ago. Boeing’s Future I believe will Boeing will have a successful future because it is a major aerospace manufacturer for Commercial and Military use. Boeing is well positioned for a successful future. Its backlog exceeds six years and the 2011 to 2014 shipments are expected to grow on average 15 per cent annually. Boeing. (2013, Mar 14). Financial Times. Retrieved from http://search.proquest.com/docview/1316906108...
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...Turbulence: Boeing and the State of American Workers and Managers This is a story as much about cutting costs, avoiding failure, and raising stock value as it is about how to treat employees, their role in business decisions, and the changing employment relationship. Over ten years, Boeing employees were surveyed and interviewed, monitoring the effect of major business decisions (new ‘teams’ culture, technology, increasing roles for women, etc…). The shift by top executives to a more single-minded and short-term focus on the financial bottom line created a sense among many blue and white-collar workers alike that they are expendable resources to be used and discarded according to the calculations of distant investors and financial gurus. Overall, the effects were not positive. Thousands of workers laid off, with thousands still employed left to do even more work than before. Major Takeaways Many factors collided to create the conditions that Boeing experienced in the 90’s. However, while some factors were out of Boeing’s control (the emergence of Airbus, increased shareholder pressure, deregulation, and changing culture), how they responded to these factors is the focus of the study. Major takeaways, with each summarized below, include: • Failure of top-down decisions (new systems, technology, ‘teams’) • Irresponsible implementation of layoffs • Changing employee loyalty Failure of Top-Down Decisions In the face of changing cultural, governmental...
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...Running head: A FINANCIAL ANALYSIS FOR THE BOEING COMPANY 1 An Overview of Financial Statement Analysis for The Boeing Company. Kathleen Kelly Capella University A Financial Analysis of The Boeing Company EXECUTIVE SUMMARY: The Boeing Company is a leader in manufacturing aircraft in both commercial and military sales. The Boeing Company is the world’s largest within its industry of aerospace/defense products and services with over $90 billion in revenue at the end of 2014 (Boeing, 2015). Boeing is a top US exporter of goods and has customers in 150 countries (Boeing, 2015). Boeing is listed on the NYSE and compared to their top two competitors, Lockheed Martin and Northrup Grumman, Boeing has an operating cash flow of 7.83B while both competitors total 5.31B (Yahoo Finance, 2015). This is more than double the amount of their competitors. While Boeing clearly has a higher cash flow their profit margins are not as high as both competitors (Yahoo Finance, 2015). However, Boeing has been extremely profitable but not as profitable as recorded in 2012 (Yahoo Finance, 2015). Boeing also appears to be losing market share at the present time. A 52 week range has been 116.32-158.83 and the last day’s range has been 146.01-148.37 (Yahoo Financials, 2015). A thorough analysis will follow to compare Boeing with its major competitors as well as review Boeing’s financial data for the last 3 years to identify any noteworthy changes and...
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...Introduction : The case traces the history of Boeing, one of the two makers of commercial aircraft. At last in the year 2006 Boeing have recovered from its multi year setback in its competitive position with its competitor Airbus industries in the commercial aircraft industry. From mid 1990 Boeing had been losing in aircraft order and profit. Airbus booked more order than Boeing in its history in the year 1999 and repeated regularly until 2005. In the first half of 2006, Boeing booked 4 times more aircraft than Airbus. In 2005 Airbus repeatedly delayed in the delivery of its newest model A380, causing embarrassment, customer had also panned Airbus smallest model A350 at the drawing board stage and requiring rework on the model. Boeing two engine long haul 787 Dreamliner, a direct competitor to A380 and A350, had received rave reviews for its technological excellence, backed by firm orders from commercial airlines and aircraft leasing companies. Commercial airlines are the customer of Boeing and Airbus, had collectively losing in the early 2000. Some times the concern people were thinking of Boeing. Did the Boeing learn its lesson and the current good fortunes reflect in the long run. Could they able to ride on Airbus due to their missteps and misfortune? Boeing showing its excellence in design, solid order book position and their efficiency and production increased. The Company is almost synonymous with commercial air travel, due to the worldwide acceptance of its product...
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...The Organizing Function for Boeing Chiquita Daugherty MGT 330 Peter Grove July 07, 2011 The Organizing Function for Boeing Management and organizing planning is a necessary job for a corporation as enormous and confusing as Boeing Corporation. The corporations function by international points that supply manufactured goods to consumers threw out the world. The company creates elevated end to go on airplane for military organizations and commercial. The products manufactured are first and primary require to take carry cargo, customer, and achieve military operations. Referring to the most important supporting and inexpensive matters at hand in Boeing Company, estimates the business organize function of management as the company speak about knowledge, technology and human resources department. Boeing Company employment success pattern move toward while the company were departing during important business quantity augment in equally of the company major marketplaces money making military air automobile, and aircraft lining. Boeing’s seven and seven collections of aircraft lining grab a large contribute to the money making airline marketplace with healthy acknowledgement for models like seven three seven, seven four seven, seven five seven, seven six seven, and 777, and the development of seven eight seven. The company supervises regardless of strong competition from European association Airbus Industries and other American manufacturers similar to McDonnell...
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...examines The Boeing Company (BA) strategic initiatives taken in relative to the organization and operation adaptation to the developing competitive environment. Boeing operates as a global company and facing tough competition recently from Airbus, Lockheed Martin, EADS, Northrop Grumman, etc. Politics, finance, economy, and resources (to name a few) impact the global market in which Boeing operates. As a result, Boeing needs to constantly evaluate its global strategy and the tactics it uses to capture the market and maintain growth. Economic Trends Recent global events, including regional political turmoil, natural disasters, and debt crises, have affected global economic growth. While global growth is expected to recover, the risk of persistent high oil prices and debt contagion could have lasting effects on the economy (The Boeing Company, n.d.). Economic growth also could be affected by slowing trade liberalization in some regions. Reduced liberalization could prolong the recovery period, affecting the demand for air travel and new airplanes. Though recent data indicates that the global economy continues to recover, the pace of the recovery in 2011 has moderated compared to 2010. High oil prices, natural disasters (Japan earthquake) and resulting consequences in a politically unrest Middle East area pose as primary threat to a continued economy recovery. China continues to grow and outpace the world DGP growth rate compared to United States, Europe and Japan (The Boeing Company...
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...Marketing Plan Executive Summary The executive summary is to give the reader an overview of the main points in the marketing plan (Rossiter, 2011). The Boeing Company, established by William Boeing, during World War 1 era. Navy Lieutenant Conrad Westervelt and Boeing became friend’s after watching the 1910 air races at Belmont Park, New York. On July 4, 1914. Boeing enrolled in Glenn Martin’s flying school and bought a plan of his own. A former shipyard was the first home of The Boeing Company, which was founded in 1916 in Seattle, Washington (Rumerman, n.d.). Today Boeing’s headquarters is in Chicago, IL. It is the commercial airplanes leading manufacturer and largest aerospace company in the world. There are two major divisions at Boeing: Defense, Space, and Security and Commercial Airplanes. A minor division at Boeing is Capital Corporation. Boeing’s Capital Corporation makes possible the delivery and sale of Boeing services and products by providing advice on leasing and financing solutions. Recommendations * In emerging markets become a first mover by promoting new Dreamliner 787 and exploit the growing air passenger traffic in China * To avoid costly manufacturing delays, create a team able to speak several different languages to manage 24 hour supplier relationships * To make sure Boeing projects take precedent and have influence over their operations invest in your key suppliers (Crooker, Dekker, Long, Malhotra, and Stetson, 2010) Boeing’s Final...
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...Boeing Management and Leadership University of Phoenix Name MGT 330 April 7, 2012 The art of management and leadership is working with your employees and its resources to accomplish and achieve the organizations goals. In order for a manager to be successful they must be able to lead. This paper will discuss how in Boeing management and leadership are different, it will explain how managers and leaders create and maintains a healthy organization culture through it s roles and responsibilities. Across the borders I will evaluate all the effects of management and globalization. In this paper I will talk about and recommend two strategies in the organization that the managers and leaders can use to maintain and create a healthy organization culture. Also with the concepts from my own experience I will support my recommendations. Management and leadership have been used by people for years and the two words do not have the same meaning and within the structure of an organization both plays a different role. In an organization some management teams lack leadership, but successful management teams have great leadership. Management is for the positions that organizations...
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...* The Boeing Company’s Financial Reporting Part Two Stephen Hyde XACC/290 June 8, 2014 Dr. Regina Henry * The assets and liabilities listed on a company’s balance sheet and income statement are there to assist investors, shareholders, and employees in determining the financial state of the company. When reporting assets the financial department has a basic outline to follow but often, especially with larger companies, will add different categories to fit their specific needs. The liabilities listed on a company’s financial statement will also follow a basic outline, with added categories to suit their needs. Both the assets and liabilities listed on these financial documents will be compared to each other for anyone who would like to inquire about the company’s financial situation. * The assets stated on the Boeing Company’s balance sheet are in the proper order according to the Generally Accepted Accounting Principles (GAAP). All of the assets are listed in order of their liquidity, this means Boeing is showing the assets in the order in which they are easiest to turn to cash. These assets are listed in the current asset category and are classified as; cash and cash equivalents; short-term and other investments; accounts receivable, net; current portion of customer financing, net; deferred income taxes; inventories, net of advances and progress billings. Some of the assets listed above like accounts receivable, net and current portion of customer...
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...Current Macroeconomic Situations Professor J.Kessio December 7, 2011 Analysis of Boeing and Bombardier according to their Stock performance, current and future sales revenue, current and future profits, and labor costs and hiring decisions. I. Introduction In December 2007 the united state of America entered a recession and 1.2 million employees lost their jobs by the end of first 10 months of 2008, many businesses start going out of the market leaving many people without jobs relying on the unemployment compensation. The impact of the recession wasn’t just on U.S economy but it was spread all over the world due the heavy financial relationships and exchange with the potential markets all across the world. The monopolist firms had effected also but not as much as the other firms did but they also faced a hard times. 1.1 The Current Economic Conditions The current economic conditions are picking up due to the fall in unemployment rate by 0.4 percentage point to 8.6% in November 2011 comparing with 9.3% in 2009 and 9.6% in 2010, also the interest rate currently is 0.75%. The GDP growth was -6.8% by the beginning of 2009 and 5% by the beginning of 2010 and 3.1% by the beginning of 2011, overall the economy performance is going in positive direction that will increase consumer and businesses confidence. 1.2 The Firm The firms chosen to be analyze are Boeing and Bombardier because they hold many of the monopoly characteristics such as they are...
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...Colorado Technical University | Principles of Business | Financial Environment | | Mary | 12/9/2012 | This is a topic about an airline that has the lowest cost for transportation in the world. It has been in business for over forty years. It is a commercial airline that services thirty nine cities. The company Head Quarters is in Dallas, Texas. They recently merged with Air Tran Airways and are now working under one name. | Identify the investor’s relations link and review the company’s investor relation information. The investor relation is dedicated to the three P’s. Performance, People, and the Planet Southwest (LUV) is the symbol that was chose to represent its home base of Dallas Love Field its employees and customer relations. It is known for its excellent customer service. Southwest Airlines has endured thirty-nine years of profits. It made over 400 million in free cash Flow which means a company is able to its debt. On May 2nd, 2011 Southwest finished its purchase on all the stock of Air Tran Holdings. There are forty- one years of service and they still can be differinate from other low cost carriers. Provide a financial summary of your selected company’s financial health. Southwest airlines received a B+ by the (GRI) Global Reporting Imitative which is a standard grading of company sustainability. December 31, 2011 the company operated 698 aircrafts, 610 was Boeing 737 and 88 Boeing 717 and serve 39 states and 72 cities. It is a passenger...
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...The Boeing Company 2010 Annual Report At Boeing, we aspire to be the strongest, best and best-integrated aerospace-based company in the world — for today and tomorrow. The Boeing Company Boeing is the world’s largest aerospace company and leading manufacturer of commercial airplanes and defense, space and security systems. A top U.S. exporter, the company supports airlines and U.S. and allied government customers in more than 90 countries. Our products and tailored services include commercial and military aircraft, satellites, weapons, electronic and defense systems, launch systems, advanced information and communication systems, and performance-based logistics and training. With corporate offices in Chicago, Boeing employs more than 160,000 people across the United States and in 70 countries. Our leadership is strengthened further by hundreds of thousands of people who work for Boeing suppliers worldwide. Contents Operational Summary Message From Our Chairman The Executive Council Financial Results Form 10-K Selected Programs, Products and Services Shareholder Information Board of Directors Company Officers 1 2 7 8 9 134 141 142 142 Cover photo: 787 Dreamliner in flight test Photo above: F/A-18E/F Super Hornet strength Operational Summary Q Earned net income of $3.3 billion, or $4.46 per share, compared with $1.3 billion, or $1.87 per share, in 2009. Q Delivered 115 production military aircraft, two launch vehicles and four satellites, and increased backlog...
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