swot and pest analysis for Boeing and airbus and conclusion part.
RATIO ANALYSIS AND COMPARISSION:
“Boeing Vs Airbus”
INTRODUCTION OF COMPANIES:
Boeing is the world's largest aerospace company founded in 1916 in Seattle. This American company is considered not only as the leading manufacturer of commercial jetliners, defense, space and security systems, but also as a leading provider of rotorcraft, spacecraft, missiles and aerospace services. As America’s biggest manufacturing exporter, the company supports airlines in more than 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. In 2018, the company generated over 100$ billion in sales, most amount of which are split into about 70% and 30% between the commercial aircraft and defense in markets.
For the fiscal year 2018, Boeing reported earnings of US$10.460 billion, with an annual revenue of US$ 101,127 billion, a 1.25% decline over the previous fiscal cycle. Boeing's shares traded at over $ 319 per share, and its market capitalization was valued at over US$206.6 billion. Between 2010 and 2018, Boeing increased its operatin cash flow from $3 to $15.3 billion.
Airbus, European Aeronautic Defence and Space Company, is one of the biggest Boeing rivals. To wit, it is the other big name in the commercial airline space and along with Boeing company, they own 43% and 45% of the global commercial airline industry. In 2018, the annual revenue of Airbus is about €63.70 billion.
RATIOS:
· CURRENT RATIO:
Current Ratio = Current Assets ÷ Current Liabilities
The current ratio measures a company’s ability to pay off short-term liabilities with current assets. It’s a liquidity ratio.
· ROE: RETURN ON EQUITY
Return on Equity = Net Income ÷ Average Stockholders' Equity
The return on equity ratio measures how efficiently a company is using its assets to generate profit and its a profitability ratio.
· ROA: RETURN ON ASSETS
Return on Assets = Net Income ÷ Average Total Assets
The return on assets ratio measures how efficiently a company is using its assets to generate profit and its a profitability ratio.
· DEBT/EQUITY:
Debt/equity ratio = Total liabilities ÷ Total equity
The debt to equity ratio calculates the weight of total debt and financial liabilities against shareholders equity and its an leverage financial ratio
Ratio Comparison