Financial Analysis for Boeing
History
Looking at the brief history of Boeing, the company was first founded in Puget Sound, Washington in 1916 by William Edward Boeing.
After sucessfully selling military aircrafts adapted for troop transportation in the 1950’s and introducing commercial aircrafts model 707, 727 followed by 737, Boeing has since then become a leading producer of military & commercial aircraft.
After a few number of mergers & acquisitions to become the world’s largest, most diversified aerospace company, Boeing enterprise now include: North American Aviation, McDonnell Douglas, Rockwell International, Hughes Space & Communications, and Jeppesen.
Financial Analysis
1. As you can see from the graphs, over the last three years, Boeing has achieved great performance in its revenue and profit. From 2004 to 2006, Boeing’s revenue increased by $10.13 billion while its profit increased by $3.7 billion.
Also Boeing managed to raise its total current assets, which increased by $5.6 billion over the years. We might find it alarming that Boeing has a large sum of total debts, however we note that the sum has significantly decreased by about 22% over the year span 2004 – 2006.
These healthy financial position were accomplished by soaring on the return on assets and investment. These financial figures portray effective management and business strategy carried out by Boeing.
2. The Earnings per share and dividend per share graph also showed increasing trends throughout 2004 - 2006.
Comparing the financial ratios of Boeing with the rest of its competitors, we can see that Boeing is the top company in the industry. The return on equity measures how much profit is generated on shareholders’ equity and as we can see this figure is 46.74%. This is almost 2x higher than the average of the industry and thus demonstrates that Boeing has a distinguish future ability to grow earnings compared to its competitors in the same industry.
The Net Profit Margin shows the effectiveness of Boeing’s
Looking at the brief history of Boeing, the company was first founded in Puget Sound, Washington in 1916 by William Edward Boeing.
After sucessfully selling military aircrafts adapted for troop transportation in the 1950’s and introducing commercial aircrafts model 707, 727 followed by 737, Boeing has since then become a leading producer of military & commercial aircraft.
After a few number of mergers & acquisitions to become the world’s largest, most diversified aerospace company, Boeing enterprise now include: North American Aviation, McDonnell Douglas, Rockwell International, Hughes Space & Communications, and Jeppesen.
Financial Analysis
1. As you can see from the graphs, over the last three years, Boeing has achieved great performance in its revenue and profit. From 2004 to 2006, Boeing’s revenue increased by $10.13 billion while its profit increased by $3.7 billion.
Also Boeing managed to raise its total current assets, which increased by $5.6 billion over the years. We might find it alarming that Boeing has a large sum of total debts, however we note that the sum has significantly decreased by about 22% over the year span 2004 – 2006.
These healthy financial position were accomplished by soaring on the return on assets and investment. These financial figures portray effective management and business strategy carried out by Boeing.
2. The Earnings per share and dividend per share graph also showed increasing trends throughout 2004 - 2006.
Comparing the financial ratios of Boeing with the rest of its competitors, we can see that Boeing is the top company in the industry. The return on equity measures how much profit is generated on shareholders’ equity and as we can see this figure is 46.74%. This is almost 2x higher than the average of the industry and thus demonstrates that Boeing has a distinguish future ability to grow earnings compared to its competitors in the same industry.
The Net Profit Margin shows the effectiveness of Boeing’s