This document provides an analysis of the business and financial performance of Boeing and Airbus between 2014-2016. It includes profiles of the industry and the two companies. Graphs show Boeing had higher sales but Airbus had better profitability ratios. Both companies faced challenges from trade wars and political decisions. The conclusion recommends Boeing rely on more customers, calculate profit per product, and form more partnerships to capture market share.

1. OXFORD BROOKES
UNIVERSITY
RESEARCH AND ANALYSIS PROJECT
“AN ANALYSIS AND EVALUATION OF BUSINESS
AND FINANCIAL PERFORMANCE OF BOEING
BETWEEN 1ST
JANUARY 2014 AND 31ST
DECEMBER
2016”
ACCA ID: 1931181
PERIOD: 36

2. THEME OF PRESENTATION
Profiles of Industry, Boeing and Airbus
Graphical analysis of financial performance
Discussion of business performance
Conclusion with Recommendations

3. PROFILES
Industr
y
Trade war between China and US
US political decision affecting industry
European industry affecting due to Brexit
Apart from all challenges, there is projection of growth
Boeing
US based aircraft maker
Donald Trump pulls out from deal with Iran
New production plant in China
Imposed the duty on steel from China to US
Acquired KLX
Airbus
European manufacturer of aircraft
Lag of deliveries is major issue
Product an aircraft which can travel up to 20 hours
C series partnership
Dealing with many airlines

4. FINANCIAL PERFORMANCE

5. SALES ANALYSIS
2014 2015 2016
-
20,000
40,000
60,000
80,000
100,000
120,000
90,762
96,114 94,571
60,713
64,450
66,581
Sales Analysis
Boeing Airbus
(Source: Boeing, 2014:2016; Airbus, 2014:2016)

6. PROFITABILITY ANALYSIS
2014 2015 2016
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
15.4%
14.6% 14.6%
14.7%
13.7%
7.9%
GPM
Boeing Airbus
(Source: Boeing, 2014:2016; Airbus, 2014:2016)
2014 2015 2016
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
6.0%
5.4% 5.2%
3.9%
4.2%
1.5%
NPM
Boeing Airbus
(Source: Boeing, 2014:2016; Airbus, 2014:2016)
2014 2015 2016
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
16.7% 16.9%
14.7%
8.3% 7.7%
4.1%
ROCE
Boeing Airbus
(Source: Boeing, 2014:2016; Airbus, 2014:2016)

7. LIQUIDITY ANALYSIS
2014 2015 2016
-
0.20
0.40
0.60
0.80
1.00
1.20
1.40
1.60
1.40
1.35
1.25
0.99 0.99 0.99
Current Ratio
Boeing Airbus
(Source: Boeing, 2014:2016; Airbus, 2014:2016)
2014 2015 2016
-
0.05
0.10
0.15
0.20
0.25
0.30
0.35
0.40
0.45
0.50
0.44
0.42
0.38
0.46
0.44
0.47
Quick Ratio
Boeing Airbus
(Source: Boeing, 2014:2016; Airbus, 2014:2016)

8. SOLVENCY ANALYSIS
2014 2015 2016
-
2.00
4.00
6.00
8.00
10.00
12.00
0.93
1.36
10.91
0.89 1.06
2.41
Gearing Ratio
Boeing Airbus
(Source: Boeing, 2014:2016; Airbus, 2014:2016)
2014 2015 2016
-
5.00
10.00
15.00
20.00
25.00
30.00
22.43
27.02
19.20
5.13 5.91
2.34
Interest Cover
Boeing Airbus
(Source: Boeing, 2014:2016; Airbus, 2014:2016)

9. EFFICIENCY ANALYSIS
2014 2015 2016
-
5
10
15
20
25
30
35
40
45
50
31
33 34
41
45 44
Debtor Days
Boeing Airbus
(Source: Boeing, 2014:2016; Airbus, 2014:2016)
2014 2015 2016
-
50
100
150
200
250
222
210
195
179
191
177
Inventory Days
Boeing Airbus
(Source: Boeing, 2014:2016; Airbus, 2014:2016)
2014 2015 2016
-
10
20
30
40
50
60
70
80
51 48 51
72 71
75
Creditor Days
Boeing Airbus
(Source: Boeing, 2014:2016; Airbus, 2014:2016)

10. INVESTOR ANALYSIS
2014 2015 2016
$0.00
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
$7.00
$8.00
$9.00
$7.47 $7.52
$7.70
€ 2.99
€ 3.43
€ 1.29
EPS
Boeing Airbus
(Source: Boeing, 2014:2016; Airbus, 2014:2016)
2014 2015 2016
$0.00
$0.20
$0.40
$0.60
$0.80
$1.00
$1.20
$1.40
$1.60
$0.49
$0.73
$0.91
€ 1.20
€ 1.30
€ 1.35
DPS
Boeing Airbus
(Source: Boeing, 2014:2016; Airbus, 2014:2016)
2014 2015 2016
0%
20%
40%
60%
80%
100%
120%
6% 10% 12%
40% 38%
105%
DPR
Boeing Airbus
(Source: Boeing, 2014:2016; Airbus, 2014:2016)

11. SWOT
Strengths Acquired KLX which is largest supplier of aerospace
Open a new plant in China for production
Different airlines approaching Boeing
Weaknesses Faced the loss on each model of 787
Heavily rely on US government contracts
Unsuccessful nuclear deal between Iran and US
Opportunities Government incentives and programs
Partnership between different players of industry
China providing opportunities for aerospace industries
Threats Trade war between US and China
Unsuccessful deal between Iran and US for nuclear
China vision Made in China 2025

12. PORTER FIVE
Threat of
Substitutes
Low
Railway and shipments are available
But there is great need of aerospace industry all over the world
Threat of New
Entrant
Very Low
Governments supporting their players
Purely capital intensive industry
Many countries have no capacity to develop aerospace industry
Rivalry
Moderate threat of rivalry
Dominance of two major players
Other players don’t have great influence
Customers
Bargaining Power
High
Paid on completion
Lag of deliveries faced financial charges
Switching cost is low
Suppliers
Bargaining Power
High
Blockchain technology
Acquired KLX
Trade war affecting relations of US

13. CONCLUSION AND
Conclusion
Business performance seems good
Utilized its strengths
Need to overcome weaknesses and threats
Recommendations
Need to reply on more number of customers
Need to calculate profit per product because one product affected
profit badly
Need to do more partnerships in industry to capture more market
share

14.  IF ANY QUESTION FOR RESEARCH PROJECT
 THANK YOU TO ALL AUDIENCE