Boeing Financial Statement Analysis Essay

Words: 9000
Pages: 36

Financial Statement Analysis Project

The Boeing Company

November 11, 2004

Table of Contents

I. Firm, Industry, and Environment 4
A. Description of firm and environment 4
B. Discussion of competitive environment 6
C. Economic climate and outlook 8
D. Other relevant factors, e.g. governmental regulations, labor relations, litigation, etc. 8
II. Evaluation of Balance Sheet 10
A. Description of asset structure 11
a. Current Assets 11
b. Customer and commercial financing 12
c. Property, plant and equipment, net 12
d. Goodwill and Other acquired intangibles, net 13
e. Prepaid pension expense 13
f. Deferred income tax 13
g. Other assets 14
B. Description of liabilities 14
a. Current Liabilities 14
b. Accrued retiree
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The company changed its name to United Aircraft - Transport Corp. in 1929 and acquired Pratt & Whitney, Hamilton Standard Propeller Company, and Chance Vought. United Aircraft then purchased National Air Transport in 1930. The Air Mail Act of 1934 prohibited airlines and manufacturers from being under the same corporate umbrella, so the company split into three smaller companies - Boeing Airplane Company, United Airlines, and United Aircraft Corporation, the precursor to United Technologies. Bill Boeing sold his shares, as a result.

B. Discussion of competitive environment

This is an extraordinarily dynamic time in the aerospace industry — with distressed conditions in some areas and robust growth in others. The commercial aviation market is experiencing its most severe downturn ever, and recent airline announcements confirm that recovery in the United States will be slower than many had expected. Conversely, defense, intelligence and noncommercial space markets remain strong, with significant growth expected in several key areas. In 1996, Boeing adopted a new strategy. The new CEO wanted to excel in all principal aerospace markets to reduce dependence on the cyclical commercial airplane market. They set out to create a diversified aerospace company. And through a series of mergers and acquisitions of key defense and space businesses felt that they had accomplished that task.