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Financial Analysis: Boeing Raytheon Lockheed Martin

Create common size statements for Boeing, Raytheon and Lockheed Martin for 2007, 2008 and 2009.

Prepare a financial analysis, computing all the classic ratios (see list below).
Prepare an executive summary with overall assessment.
Characterize the strength of the company, along with the level of risk assumed.

Discussion = 672 with much of it in bullet format so student can create their own paper from the ideas.
Discussion is given from two points of view (a discussion only of Boeing and the others are the "competitor" to compare) and from looking at all three and selecting the strongest.

Includes an excel template that is "linked" to the ratios so you can substitute data of other companies and the ratios will update.

These ratios are computed:

gross margin (product)=

gross margin (service) =

operating margin =

net margin =

return on operating assets =

return on assets =

return on equity =

asset turnover =

accounts receivable turnover =

average days in accounts receivables =

inventory turnover =

average days held in inventory =

accounts payable turnover =

accounts payable days outstanding =

property plant & equipment turnover =

Average useful life =

Percent used up =

Solution Preview

I have completed an excel spreadsheet. All the financial statement amounts are linked ...

Solution Summary

This is the classic assignment! Select a firm and then find two competitors, common size them, run the ratios and then figure out what this all tells you! The original post wanted everything from Boeing's view (with the other two as comparisons) but there is also a response that just compares all three. The solution is given in Excel with the ratios linked to the data cells so that they automatically re-compute when new data is entered. This provide a template to learn and then re-use with other firms.

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