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Boeing Financial Analysis

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Boeing Financial Analysis
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
VIII. Long-term Debt Paying Ability Ratios and Analysis 34-35
IX. Profitability/Long-term Activity/Investor Ratios and Analysis 36-38
X. Scenario Analysis 38-47
Appendix A: Competitor Restatements and Common Sized Financials 48-51
References 52-54

I – Introduction to Company The Boeing Corporation, originally Pacific Aero Products Company, was established in 1916 in the Washington Puget Sound region. The company was originally incorporated to build aircraft, air mail delivery, and pilot training, but was broken up by the government in 1934 creating United Airlines and Boeing Aircraft Company. During the first 97 years the company expanded through strategic mergers and acquisitions of storied aerospace pioneering companies into the $81.7 billion dollar company it is today. Many of the companies are household names with the older generations: North American Aviation, McDonnell Douglas, Rockwell International, Hughes Space & Communications, and Jeppesen. Through these expansions, Boeing has become the world’s largest and most diversified player in the aerospace and defense industry. Ranked in the top of U.S. exporters, Boeing supports airlines as well as the U.S. and allied government customers in 150 countries. The company is divided into two major business units supported by nine corporate functions. The two business units are Commercial Airplanes (60%) and Defense, Space & Security.
Boeing


References: Aeroweb (2011) “Boeing Debt Ratings” Retrieved from http://www.bga-aeroweb.com/firms/Liquidity/Debt-Credit-Rating-Boeing.html Airbus (2013). Company –Market Forecast. “Airbus Global Market Forecast 2012-2031”, retrieved from http://www.airbus.com/company/market/forecast/? eID=dam_frontend_push&docID=25773 AirlineReporter.com (2012) “A Letter from the CEO”, Retrieved from http://www.airlinereporter.com/2013/01/2012-was-a-good-year-for-boeing-a-letter-from-the-ceo/ Associated Press (2012) “Boeing boosts 2011 pay 34 percent for CEO Jim McNerney”, Retrieved from www.suntimes.com/business/11345861-420/boeing-boosts-2011-pay-34-percent-for-ceo-jim-mcnerney.html Boeing (2013) Boeing (2013). Commercial Airplanes – About Commercial Airplanes. Retrieved from http://www.boeing.com/commercial/overview/index.html Boeing (2013) Boeing (2013) “Boeing 2012 10-K”, Retrieved from http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=9070385-907-469872&type=sect&TabIndex=2&companyid=11757&ppu=%252fdefault.aspx%253fcompanyid%253d11757 Boeing (2012) “Boeing 2011 10-K”, Retrieved from http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=8388588-901-509063&type=sect&TabIndex=2&companyid=11757&ppu=%252fdefault.aspx%253fcompanyid%253d11757 Boeing (2012) “Boeing 2011 Proxy Statement”, Retrieved from http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=8420852-877-419023&type=sect&dcn=0001193125-12-066385 Boeing (2011) “Boeing 10-K 2007-2010”, Retrieved from http://yahoo.brand.edgar-online.com/default.aspx?cik=12927 Busch, J. (2009) “Friday Rant: Boeing’s Bad Outsourcing Dream”, Retrieved from http://spendmatters.com/2009/06/26/friday-rant-boeings-bad-outsourcing-dream/ Deloitte (2013) “Global aerospace and defense industry outlook - Expect defense to shrink while commercial aerospace sets new records”, Retrieved from www.deloitte.com/assets/DcomIceland/Local%20Assets/Documents/2013GlobalADIndustryOutlook.pdf General Dynamics (2012) “General Dynamics 2011 10-K”, Retrieved from http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=8420852-877-419023&type=sect&dcn=0001193125-12-066385 Glass Door (2013) http://glassdoor.com/salary Howstuffworks (2013) “How Much Fuel Does an International Plane Use for a Trip?”, Retrieved from Northrop Grumman (2012) “Northrop Grumman 2011 10-K”, Retrieved from http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=8383523-999-530158&type=sect&dcn=0001193125-12-045323 PricewaterhouseCoopers LLP (2013) “Aerospace & Defense, 2011 year in review and 2012 Forecast”, Retrieved from http://www.pwc.com/en_GX/gx/aerospace-defence/assets/aerospace-and-defence.pdf PricewaterhouseCoopers LLP (2013) “Gaining technological advantage A&D Insights 2nd edition”, Retrieved from Raytheon (2012) “Raytheon 2011 10-K”, Retrieved from http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=8429261-912-639970&type=sect&dcn=0001047122-12-000044 Solar Turbines (2012) “About Solar Turbines”, Retrieved from https://mysolar.cat.com/cda/layout?m=10683&x=7 Talton, J. (2013) “Boeing board of directors, where are you?”, Retrieved from seattletimes.com/html/businesstechnology/2020268550_biztaltoncol03xml.html Yahoo! Finance (2013) Summary of Boeing and Competitors, Retrieved from http://finance.yahoo.com/q?s=BA
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