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Boeing Financial Analysis Essay

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Boeing Financial Analysis
The Boeing Company was formed in 1916 by William E. Boeing in Seattle, Washington. The following year they had a twenty eight person payroll which included pilots, carpenters, boat builders and seamstresses. The lowest wage was fourteen cents an hour, while the company's top pilots made two to three hundred dollars a month. When the company was short on money, William Boeing used his own financial resources to guarantee a loan to cover all wages, which was a total of about seven hundred a week. ("Boeing History," n.d) In 1997, they merged with McDonnell Douglas and are currently the world's largest aerospace company and leading manufacturer of commercial airliners and defense, space and security systems. With …show more content…

A few of their major competitors are: Lockheed Martin, Honeywell, General Dynamics, Raytheon, Embraer and Rockwell Collins. Following the merger with McDonnell Douglas, Lockheed Martin could not keep up in the commercial airlines industry and now only manufactures military aircraft. Lockheed is now their largest competitor for government contracts.
Boeing vs. Industry Leaders
Statistic Industry Leader Boeing Boeing Rank
Market Capitalization Boeing 55.97B 1 of 51
P/E Ratio CPI Aerostructures 56.79 14.9 21 of 51
PEG Ratio Alliant Techsystems Inc. 4.53 1.13 17 of 51
Revenue Growth Butler Natl. Corp 28.40% 4.5% 30 of 51
EPS Growth AeroVironment Inc. 2900% 30.80% 17 of 51
Long Term Growth Rate Embraer 45.76% 13.51% 21 of 51
Return on Equity Lockheed Martin 82.23% 71.42% 2 of 51
Dividend Yield Lockheed Martin 4.9% 2.3% 5 of 51

(Yahoo finance, 2012) By comparing the above companies, Boeing is a very strong and stable company. Large cap companies have market caps of $5 billion or more. This category includes the big blue chip companies that are household names to most investors. Although investors in stocks in any market capitalization category incur risk, surprises have traditionally been less likely among these blue chip companies (Ross, 2011). Their high return on equity measures how much the shareholders earned for their investment in the company.

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