Benchmarking of Boeing

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Benchmarking of The Boeing Company


January 4th, 2012

Benchmarking of The Boeing Company

The intent of this benchmark study is to summarize the financial health of Boeing and its competitors through an in-depth analysis of financial statements, the technological advantages of Boeing and how globalization affects them. Although there are many different financial statements a company can produce, we’ll specifically review these three main ones; the income statement, the balance sheet and the statement of cash flows. The analysis will show the strengths, weaknesses, trends and uniqueness of these companies. Furthermore, it will show how Boeing compares to these competitors and with the aviation industry and why Boeing continues to be a market leader in world aviation. The purpose of this analysis is to prove the decision that Boeing is a great investment for this company.

Boeing’s Financial Health

“Boeing delivered strong operating performances and exceptional cash generation from core production and service businesses in 2010, which helped mitigate the impact of development program challenges,” said Jim McNerney, Boeing Chairman, President and Chief Financial Officer (Boeing Annual Report, 2011). The stakeholders of the company would be pleased to see that diversity that Boeing offers and for which keeps them both competitive and viable in the aviation industry. The future looks very good as Boeing recently was awarded a $3.48 billion U.S. Missile Defense contract after beating out rival, Lockheed Martin (Temple-West, P).

Income Statement

The income statement is just what it says. A summary of a company or management's performance over a certain period that lists the revenues and expenses of past that led to the current profit or loss. It may also provide an indication of what may be done to improve the performance (Business Dictionary, 2011).

In 2011, Boeing’s revenues were down by 6% as compared to 2009 when Boeing realized a gain of...