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Paper About the Boeing Company (BA) Paper 4: • Introduction: Provide a general introduction to your paper  • Trend Analysis: In this section, provide an analytical summary. Provide a brief discussion of each ratios you calculated. Comments on the trends. • Cross Sectional Analysis: In this section, provide an analytical summary. Compare your company to industry/competitor. Your discussion should be focused on comparing your ratios to the industry ratio or to one of your competitors • Conclusion: In this section, provide an analytical summary. Compare your company to industry/competitor. Your discussion should be focused on comparing your ratios to the industry ratio or to one of your competitors • Reference: Provide a separate reference page. All work in your reference should be cited within the body of your work. • The report should be no less than 7 papers and well written with cover page, introduction, the body of the paper (with appropriate subheadings), conclusion, and reference page. References must be appropriately cited. Format: Double-spaced, one-inch margins, using a 12-point Times New Roman font.Running Head: BOEING COMPANY 1 BOEING COMPANY 2 Boeing Company A brief historical summary Boeing Company is a very large business entity that is recognized worldwide. It is a business that deals with business planes, security frameworks amongst many other activities. It is a top exporter business that is found in US it has clients that ranges from private sectors and government entities. The business entity is found in over 150 countries. A list of competitors The company has many competitors which are raging from Raytheon, , Lockheed Martin, Northrop Grumman, General Dynamics, Space, BAE Systems, Airbus, Bombardier, Embraer, Loral Space & Communications. However the company has got its own mechanisms of dealing with competitors and this has made it to outshine all the other competitors and make it stand amongst all of them and to continue making massive profits. The companys position within the industry The company has a higher position in the market because of its ability to come up with new strategies that it uses to outshine other competitors. The business is four fragments the first fragment is dealing with commercial airplanes and this business type has got a lot of profits that of around 60\%which constitutes a much more profit for the company. It’s also involving itself in global services, space as well as security issues. The company has engaged itself in defiance and this has made the company to purchase so many equipment that are in the line with that so as to safeguard the stock that the company bought for usage in its services(Petrescu, et al, 2017). Recent developments within the company/industry The company has made so much development in terms of goods and services that they deal with. There is more innovation that is underway being undertaken by the company. There are recent innovations for example first flights inventions amongst many other milestones that the company has made. The company as well is continuing to transform it to a new design that is used by the team in across the globe. This is a way of building products and services for the company. There has been development of systems that are enabling the company to maximize the resources that they have so as to get maximum profit. The company has also mechanisms that enable it to engage in activities which are environmental friendly. The company has invested in research and innovation so much and it invests more than $3B annually for that sake. The main aim of investing hard in research and development is so that the company will be in a position to transform the aerospace and the defense sector as well. The Boeing employees are very ingenuity and passionate and this makes them to be very productive in their work. The employees engages themselves in innovations and technologies which are helpful in solving of some real problems that happens in the world. Future goals The company has a future goal of being the best providers for the goods and servRunning Head: BOEING COMPANY-Part3 BOEING COMPANY CROSS SECTIONAL ANALYSIS 3721 Boeing Company SIC & Industrial Name – 3721, Boeing Company The Boeing Company represents one of the largest aerospace companies in the world with an in-depth specialty in jetliners, defense, security, and other space systems, as well as providing after sales support services. Currently, the company has government-based customers from over 150 countries across the world, thus showing the strategic position of the company as a global competitor within the aircraft manufacturing and services industry. However, to have a well-informed overview of the performance of the company from a multifaceted angle, there needs to be an analysis of the companys financial performance, which reflects several elements within the organization such as efficiency and profitability potential. This report aims at providing a thorough analysis of the company’s profitability, efficiency, liquidity and solvency by analyzing the various financial ratios of the company obtained from credible sources such as investors.com and ready ratios so as to gain an overview of the effectiveness of the company’s processes. These ratios will further be compared through a cross-sectional analysis with other related companies operating within the same industry so as to gain a wider view of the company’s performance. This paper is going to focus on the analysis of the companys performance based on the four aspects, which include profitability, efficiency, liquidity, and solvency using the historical financial performance ratios obtained from the company’s financial statements. Companys profitability The companys profitability can be analyzed using various financial metrics that normally create a vivid picture of the companys ability to generate profit, the general revenue and the operating costs, among other liabilities incurred within the course of the production. Some of the profitability ratios involve the Return on assets and the Return on Equity. Gross Profit Margin The gross profit margin is mainly used as an indicator of whether the sales made are sufficient enough to cover up for the production costs of those particular goods. The average gross profit margin is usually regarded as being 10\% or above as the rule of thumb when analyzing the profit margin, whereas a 20\% gross profit margin is considered a good gross profit margin. According to the analysis of The Boeing Company’s gross profit margin, the company’s profitability can be regarded as being low mainly because the company has a gross margin of -9.78, which is below the industry average of 22.71\% (About Financial Ratios, 2021). It is worth noting that a 5\% margin is usually considered as being generally low. Subsequently, a cross-sectional analysis of the company against its closest competitor, United Technologies Corporation, is an indicator of the weak capacity of the company to turn its assets into profits sRunning Head: BOEING COMPANY-Part2 1 Boeing Company Financial Statement Analysis: The Boeing Company Introduction The Boeing Company is an American company founded in July 15, 1916 by William Boeing and has its headquarters in Chicago, Illinois (Wilma, 2020). The company is rated as being among the best performing financially with the latest Fortune Magazine “Fortune 500” list rating of 2019 putting the company in the 40th position after realizing sales volume of US$ 76.6 billion. In the year 2020, Boeing Company was ranked position 121 on the “Fortune Global 500” list (Weiss & Amir, 2019) Financial statement analysis is the process where accounting information given in financial statements and reports are critically examined in detail. The process revolves around evaluating relationship between component parts of financial statements in order to obtain a better understanding of a firm’s performance (White, Sondhi & Fried, 1998). The measurement and interpretation of business performance is done through the use of ratios. A comprehensive analysis of the financial statement of Boeing Company is vital to many stakeholders in the business world. One way of doing this is through the analysis of the financial ratios related to the company. The financial rations plays vital roles which include: revealing the ability of Boeing Company to meet its short term obligations as and when they fall due, assessing the performance of the company within the period with which the financial statements covers, enabling both cross-sectional and time series analysis of the company, establishing a prediction of the future performance of the company as well as establishing the efficiency of the company with respect to the utilization of its available assets to generate revenues (Groppelli & Ehsan, 2000; Ingram, 2019). This financial ratio analysis of The Boeing Company focus on analysing various ratios including the debt ratio, gross profit margin, free cash flow ratio, times interest earned ratio, accounts receivable turnover ratio, inventory turnover ratio and the DuPont analysis of the ROE. An evaluation of the ratios will be represented to establish the overall performance of the company in as far as profitability, efficiency, liquidity and solvency are concerned. Financial Ratio Analysis for the Boeing Company (Figures are in Millions of USD except the resultant ratios and percentages) i. Debt Ratio Debt ratio= Total debt (current plus long term liabilities) Total assets For 2019 = 142,242/133,625= 1.06 For 2018 = 117,020/117,359= 1.00 ii. Gross Profit Margin Gross profit margin = Gross profit x 100 Sales For 2019 = (12,725/84,818)*100\% = 15.0\% For 2018 = (19,637/101,127)*100\% = 19.4\% iii. Free Cash Flow Free cash flow = Net operating cash flow – Investment i