Please search 10k Report of Boeing Corporation from Sec.gov or company website.

Question

Please search 10k Report of Boeing Corporation from Sec.gov or company website.

1.What are the significant events, trends, and risk factors affecting the firm?

2.Calculate the company's financial ratios for the two most recent years, and addressing the company's liquidity, operating efficiency, debt, and profitability. Are there significant trends or changes in any of the ratios? To what do you attribute these trends or changes?

3.If the company issues bonds, what is the credit rating on the company’s debt? The company’s bonds considered investment grade or “junk”? Compare the yield on the company’s bonds to the yield on similar Treasury bonds. What is your best “guesstimate” of the estimated premium for default risk that the market is placing on these bonds?

4.Does the company pay cash dividends on its shares? What is the company’s current payout ratio, dividend yield, and dividend growth rate? Does the Dividend Growth Model do a good job of justifying the current market price of the company’s common stock? Why or why not? Does the company return capital to investors in other ways, as through a share repurchase program?

Explanation / Answer

Solution:-

1.Significant risk factors affecting the firm:-

a)Fixed price contracts:- Entering into fixed price contracts which could be subject to loss if cost overruns.

b).Carrying cost type contracts:- Enterring into cost type contracts also carries risk.

c).Inorbit incentive payments:- orbit payments may be paid over after final satellite acceptance or paid in full prior to final satellite acceptance. In both the cases, the inorbit incentive payment is at risk.

d)Dependent on sub contractors and suppliers:- rely on other companies including subcontractors and suppliers to provide and produce raw materials, integrated components and sub assemblies, and production commodities and to perform some of the services that is provided to customers. If suppliers delays in deliveryor other performance problem, unable to meet company's commitment.

e).Estimation in Accounting:- Using estimates in accounting for many contracts and programs. Changes in estimatescould adversly affect future financial results.

f).Cmpetation in Market:- Competation within markets and with respect to the product they sell may reduce future contracts and sale.

g).Outside Buyers:- Significant portion of revenue from outside country sales is subject to the risk of doing risk of doing business in outside countries.

h).Litigation Matter:- The outcome of litigation matter and of government inquiries and investigations involving business unpredictable and an adverse decesion in any such matter could have a material effect on financial position and result of operations.

2. Liquidity Ratio(dollars in millions)

(cash equivalents+marketable securities +accounts receivable)/current liablities

2015 2016

68234/50412 62488/50134

=1.3535 =1.2464

Debt Equity Ratio

Debt/equity

2015   2016

9964/6335 9952/817

1.57 12.18

Gross profit margin

(Gross profit*100)/revenue

2015 2016

14026*100/96114 13781*100/94571

14.59% 14.57%

4. yes, the company pays cash dividend on its shares.

Companies current payout ratio is 0.45(as of sept 2017).

dividend yield of boeing company is 1.98%

during the past 12 months companies dividend per share growth rate is 28% per year.

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