Essay About Net Worth And 0124.1035.8061.90Sales

Industry Averages and Financial Ratios Learning Team C
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Industry Averages and Financial RatiosLearning Team CFIN/370July 24, 2015Thomas RiettaBoeingLocated in Chicago, Boeing is the worlds largest aerospace company and leading manufacturer of commercial jetliners and defense, space and security systems. As a top U.S. exporter, the company supports airlines and U.S., as well as allied government customers in 150 countries. Boeing products and tailored services include commercial and military aircraft, satellites, weapons, electronic and defense systems, launch systems, advanced information and communication systems, and performance-based logistics and training. (Boeing, 2015)Industry Averages and Financial RatiosThe Tables below are comparing Boeing’s ratios for 2013/2014 with industry standards of 2012.Solvency RatioRatio Boeing 2013/2014 Industry Standard 2012 ComparisonUpperMedianLowerQuick Ratio  .43/.371.60.60.30Current Ratio1.26/1.203.401.901.40Current Liabilities/Net Worth  .56/.5725.6041.20117.40Current Liabilities/ Inventory 1.20/1.21119.20127.50205.40Total Liabilities/Net Worth       1/126.6078.10335.70Fixed Assets/Net Worth Ratio  .11/.1229.9045.1071.80As you can see when it comes to solvency Boeing is well in the Upper category in every category except for quick ratio and current ratio.  Quick ratio is in the median category, which puts them at a disadvantage.  Current ratio is in the lower category but Boeing can still pay current liabilities.Efficiency RatioRatio Boeing 2013/2014Industry Standard 2012 ComparisonUpperMedianLowerCollection Period Ratio.00/.0124.1035.8061.90Sales/Inventory 2.02/1.9411.407.303.40Assets/Sales1.07/1.0947.30107.70180.40Sales/NetWorking Capital1.33/1.346.605.504.20Accounts Payable/Sales.11/.123.907.0013.00As for efficiency, Boeing is in the upper category in three out of five categories.  The two that are not in the upper category are actually in the lower category.  Sales/inventory and sales/net working capital are the two categories in the low.  Sales/inventory is in the low which means that when compared to the 2012 industry standards they are not having the sales or inventory turnover that competitors are having/doing.  Sales/net working capital shows that the company needs funds to raise sales.Profitability RatioRatio Boeing 2013/2014Industry Standard 2012 ComparisonUpperMedianLowerReturn/Sales .05/.066.604.50-0.30Return/Assets .05/.059.004.500.40Return/Net Worth .05/.0619.7013.403.40Profitability is in the lower category in every section.  This is showing that in 2012 Boeing would have not done well in profitability when put against the industry standards.ConclusionBoeing is holding their own in comparison to industry standards (2012). The can still pay the bills and maintain business. However, it also shows that they have room for improvement. Additional sales would help not only in regards to Inventory turnover, but ultimately it will assist in the improvement of company profits. As a leader in their industry we feel as though the company will improve over time. Exhibit A2013-2014 Ratios DetailsRatioEquation2013 Numbers2013- Ratio2014 Numbers2014- Ratioquick ratio current assets- inventory/current liabilities65074-42,912/514860.43067,785-46,756/56,7170.371current ratiocurrent assets/current liabilities65074/51,4861.26467785/567171.195current liabilities/net worthcurrent liabilities/net worth51486/92,6630.55656717/99,1980.572current liabilities/inventorycurrent liabilities/inventory51486/429121.20056717/467561.213total liabilities/net worthtotal liabilities/net worth92663/92,6631.00099198/991981.000fixed assets/net worthfixed assets/net worth10224/926630.11011007/926330.119      collection period ratioAccounts Receivable/Credit Sales/3656,546/3627/3650.0057729/3371/3650.006sales/inventorysales/inventory86,623/429122.01990,762/467561.941assets/salesassets/sales92663/866231.07099198/907261.093sales/ net-working capitolsales/ net-working capitol86623/65,0741.33190726/677851.338AP/salesAP/sales9498/866230.11010667/907620.118      return/salesreturn/sales4585/866230.0535446/907620.060return/assetsreturn/assets4585/926630.0495446/991980.055return/net worthreturn/net worth4585/926630.0495446/926330.059***Numbers in millionsReferencesBoeing Company Website, retrieved July 25, 2015