ipl-logo

Financial Analysis Of Giants, Boeing And Airbus

1904 Words8 Pages

Introduction Financial analysis has been completed on two aviation industry giants, Boeing and Airbus. Boeing is an American based company, Airbus is located throughout the European Union. Boeing has traditionally been the biggest player in aircraft manufacturing, recently, Airbus has been catching some of that ground. I predict that Boeing will be the financially healthier organization, and the one that I would choose in the end to be employed by.
Ratios
Gross Profit Margin: Airbus 's gross profit margin for 2015 is .137. Airbus 's gross profit margin for 2016 was .079. For Boeing, gross profit margin was .145 in 2015 and 2016.
Net Profit Margin: For 2015, Airbus had a net profit margin of .042. In 2016, that ratio dropped to .015. In 2016, net profit margin was .0517 in 2016.
Current Ratio: The current ratio for Airbus was measured at -.049 for 2015. For 2016, it was measured at -.062. For Boeing, the current ratio was 1.35 in 2015. In 2016, Boeing 's current ratio was 1.24. Quick Ratio:
Boeing 's quick ratio was .416 in 2015. In 2016, the quick ratio for Boeing was .385.
Inventory Turnover:
Inventory turnover for Airbus for 2015 was 2.28. For 2016, inventory turnover was measured at 2.48. Airbus has an average inventory of 27,029,250. For Boeing, inventory turnover was .049 in 2016. Boeing 's average inventory was 45,228,000.
Days in Inventory: Airbus 's days in inventory for 2015 was 159.87. Airbus 's days in inventory for 2016 was 147.23. Days in inventory

Show More
Related

  • Space Traders Analysis

    684 Words  | 3 Pages

    The movie Space Traders is based on Derrick Bell 's short story it 's directed by Reginald Hudlin and stars Jason Bernard, Larry Anderson, Robert Guillaume, George Wallace, Brian Reddy, Brock Peters, Edward Edwards and Bob Gunton. Space Traders is about aliens coming to America offering gold and clean air in exchange for all black people with a certain amount of melanin in their skin. I would say this movie is valid and invalid. The movie has a deeper meaning to it than what is portrayed But the graphics are horrible. I can understand why its terrible because it was made in the 90s, so technology wasn 't really developed however even due to the poor graphics they still managed to get the author 's point across.

    Read More

  • Costco Code Of Ethics Essay

    519 Words  | 3 Pages

    This calculates to total revenue of $88.915 billion. Exhibit 1 also states that the net income for the year was $1.462 billion. By dividing the 2011 net profit by that year’s total revenue we find that Costco’s net profit margin for 2011 was only 1.64%. Note that net income was less than the membership fees. The net profit margin indicates the business itself would make little or no money.

    Read More

  • Boeing Core Competencies

    1428 Words  | 6 Pages

    With product innovation strategy, Boeing is forecasting the market trends extremely well after obtaining detailed and accurate knowledge of designing and implementing customer-based needs and demands. The process innovation strategy of Boeing is based on Lean manufacturing policy that includes the efficient use of company’s assets, inventory, and supplier management in achieving high quality and low transaction costs. The key competency of Boeing commercial airplane segment is the capability to put into practice large-scale systems integration in making advanced and technology-based commercial aircrafts (Hitt et al., 2009). Also, Boeing’s operational strength is primarily based on distinctive level of leadership and management in obtaining competitive

    Read More

  • Economic Factors Affecting Qantas

    315 Words  | 2 Pages

    This article concerns various elements of the economic environment and their impact upon Qantas, such as significantly lower fuel prices. Representing its largest cost, lower oil prices as a result of oversupply and lack of demand have reduced Qantas’ fuel costs by $597 million since the previous year (O’Sullivan 2015a). Another contributing economic factor has been the Abbott government’s repeal of the carbon tax as part of its fiscal policy, which is said to have boosted Qantas’ pre tax earnings by $116 million (O’Sullivan 2015b). This article further relates to the economic environment as it discusses the impact of the falling value of the Australian dollar on Qantas. Its 25% decline since mid-2014 has encouraged Australian residents to

    Read More

  • Finance Case Study: The Wilkerson Company

    895 Words  | 4 Pages

    The last product that this company produces are the flow controllers. Flow controllers are products that are very customizable but are not as competitive on the market demanding higher prices. The planned gross margin for the flow controllers was 35% with an actual margin of 41.%. There was a significant increase without the loss of any business. The Wilkerson company have a quality leadership team; however, there are some things that needs to be changed for the company to succeed and prepare for potential price

    Read More

  • Delta Airlines Executive Summary

    1042 Words  | 5 Pages

    inventory cost is determined using the First-in, First-out method (FIFO).In which the oldest cost is matched against revenue and assigned to cost of gods sold. Delta Airlines inventory is tracked with jet fuel, refined oil product and refinery, the company owns a refinery acquired on June 2012. Spare parts also account for inventory. Spare parts related to aircrafts, which cannot be repaired economically, reconditioned or reused once removed from the aircrafts. Are carried at an average moving cost and then charged to operations as consumed.

    Read More

  • Analysis Of Metro Inc. And Loblaw Companies Limited

    552 Words  | 3 Pages

    Metro’s profit margin is also about double the percentage of Loblaws which demonstrates that Metro is better at taking revenue and turning it into profit than Loblaws. This company’s net earnings had a large increase of 12.9% from the previous year. The profit margin is important for shareholders because it shows them that the company is efficient and profitable. In addition, food deflation should ease in the next quarters so this will help grocery retailers, like Metro, to increase their profits and

    Read More

  • United Technologies Corporation Case Analysis

    2221 Words  | 9 Pages

    The company has signed an 80-year long partnership with Boeing Company that is a step forward compared to the previous one. Boeing Company needs the investment and expertise of United Technologies and by this long-term contract it ensures a stable relationship with one of the main customers of the industry. By signing this contract United Technologies has decided to invest again into a new technology development and create value for the industry by new solutions, which reduce cost for end

    Read More

  • Grandma's Best Swot Analysis

    984 Words  | 4 Pages

    Their current ratio is 1.4% (total current assets/total current liabilities). According to the Risk Management Association of Financial Ratio Benchmarks, the current average ratio is 1.5%. In 2014, the current ratio for the firm was 1.46% while the average ratio in the industry (NAICS 311330) was 1.6%. The company’s net property and equipment in 2015 is worth 2.6 million dollars, a slight increase from 2014, which was 2.3 million. The company is considering taking on some debt to increase their production capabilities.

    Read More

  • Research Paper On Lockheed Martin

    1083 Words  | 5 Pages

    Lockheed Martin is an American aerospace and defense company that has played a significant role in the history of aviation and space exploration. Founded in 1995, the company has its roots in the early days of aviation and has since evolved into one of the world's largest and most diversified defense contractors. This paper provides an in-depth overview of the company, including its history, founders, offerings, unique selling propositions, and the four P's of marketing. Lockheed Martin Corporation was established in 1995 as a result of the merger of Lockheed Corporation and Martin Marietta. Lockheed Corporation was founded in 1912 by Allan Loughead and his brother Malcolm.

    Read More

  • What Is The Competitive Advantage Of Ryanair

    1490 Words  | 6 Pages

    INTRODUCTION This is the report from our evaluation of the Ryanair Holdings. Ryanair was found in 1985 and has its headquarters at the Dublin Airport Ireland. Flights began between Ireland and the United Kingdom in1986 as the new airline’s Dublin-London route challenged the British Airways-Aer-Lingus duopoly. Ryanair is the pioneer of the low-fares model in Europe and it is the largest European low fares airline. As the time changed, there are many threats come and hurt the Ryanair airline.

    Read More

  • Aviation Value Chain Analysis

    1601 Words  | 7 Pages

    Competitiveness Airports operate in a highly competitive environment and therefore encourage developments which make the airport sector more responsive to the needs of their passenger and airline customers. Competition in the airline sector has been a driver of innovation and cost reduction and has delivered major benefits for consumers in terms of increased choice and value. Effective competition between airports is clearly something to be encouraged for the same reasons. “Within the aviation industry, MRO, ground handling, catering, CRS and freight forwarding created economic profits, but these were much more than offset by economic losses by airlines and airports. Airlines were responsible for the large USD17 billion of economic losses globally.

    Read More

  • Example Of Admission Essay Sample

    488 Words  | 2 Pages

    My lifelong exposure to aerospace has given me a very strong passion for aircraft and the engineering processes behind their production and operation. My ambition is to further my knowledge in this fascinating discipline and create a career from my skill. Partially responsible for my captivation is the strong connections to this industry in my family. My Uncle is an engineer in Boeing’s space division and his line of work was what originally drove my curiosity as a child. Living in a part of England peppered with air traffic, I would often peer to the skies in awe of jets ferrying passengers to faraway destinations.

    Read More

  • Supply Chain Management In The Boeing Company

    1725 Words  | 7 Pages

    Over time, Boeing took several actions to address these challenges. [1] This effort will include an assessment of supplier progress in meeting their commitments to deliver more complete assemblies on subsequent airplanes. Additionally, Boeing 3] inserted some additional schedule margin for dealing with other issues we may uncover in testing prior to first flight and in the flight test program." [7] The Boeing Company today announced a series of executive leadership changes and a restructuring within Boeing Commercial Airplanes to better align resources across its development and production programs and strengthen oversight of its global supply chain. "The steps we are taking today will sharpen our management focus and bring our organizational structure to bear to improve execution in our supply chain, as well as on our development

    Read More

  • Project Management And Management Case Study: Boeing 767

    1338 Words  | 6 Pages

    Mid-Term Paper – Boeing Analysis MGMT 658 Abstract Unlike other manufacturing industries, aircraft manufacturing is considerably large and complicated. It is a field with high risk involvement. Losses incurred can be quite huge due to the size of the industry. Being the case, the aircraft manufacturing industry calls for intrinsic planning and comparatively larger pool of skilled and cooperative manpower for successful production.

    Read More

More about Financial Analysis Of Giants, Boeing And Airbus

Open Document