Mod 6.5

Total Revenue - Cost of Sales = Profit Margin

2009 2010 2011

Total Revenue $68,281 $64,306 $68,735

Cost of Sales $56,540 $51,843 $55,867

Profit Margin $11,741 $12,463 $12,868

Gross Profit / Total Revenue = Gross Margin

Gross Margin 17% 19% 18%

Boeing currently ranks 35 out of 40 for the aerospace and defense products and services industries. Information obtained from: http://ycharts.com/rankings/industries/Aerospace%20&%20Defense%20Products%20&%20Services/gross_profit_margin on October 2, 2012.

From looking at their reports their total revenues dipped in 2010 but rebounded in 2011. Boeing’s total costs and expenses dipped as well in 2010 but rebounded in 2011. To increase their total revenues Boeing might want to advertise and push their services. This seems to stay consistently low through all three years. To decrease Boeing’s expenses they might want to look at their cost of products. This seems to have went higher in 2011. Boeing’s cost of services and capitol corporation went down from 2010 to 2011.

Looking at Boeing’s consolidated statement of financial position it appears that their total assets went up by a little over $11,000. Their total current liabilities went up about $6,000 from 2010 to 2011. The liabilities were mostly affected by advances and billings in excess of related costs. This figured jumped up a little under $7,000 from 2010 to 2011.

The financial reports for Boeing was taken from: http://phx.corporate-ir.net/phoenix.zhtml?c=85482&p=irol-sec filed on 2/9/2012.