Boeing And Airbus : Organizational Structures

1855 WordsDec 7, 20158 Pages
With this complete analysis, it is easy to see that Boeing and Airbus actually have identical organizational structures. The only difference between the two companies is that Airbus adds an additional departmental classification of location. Financial Ratios Financial ratios are used as a tool help investors, creditors, and the internal company management to understand the organizations performance and areas in need of improvement. These ratios can also help compare different firms in different industries. Ratios can measure operational efficiency, liquidity, stability and profitability (Loth, 2015). This portion of the report will analyze Boeing and Airbus’ financial health. Boeings free cash flow (FCF) was 6.62 billion dollars in 2014 (Boeing Co MarketWatch, 2015). Airbus’ free cash flow in 2014 was 155 million dollars (Boeing Co MarketWatch, 2015). There is a tremendous difference in Boeing and Airbus’ free cash flow. This allows Boeing many more opportunities than Airbus to invest in research and development. Additionally, Boeing has more chances at creating better-innovated products and services. This cash could also be used for expansion, reducing debt, and enhancing Boeings shareholder value. Overall, the health of Boeing is exceeding Airbus and is thriving in its current environment. However, Airbus has the ability to generate cash, which helps the firm maintain operations and keep them a top leader in the market. Boeing and Airbus each have spent 3

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