FINANCIAL STATEMENT AND RATIO ANALYSIS TABLES

FINANCIAL STATEMENT

AND

RATIO ANALYSIS

TABLES

The Boeing CompanyConsolidated Financial Balance Sheet

Item Description 1999 1998 1997 1996No. 3rd Qtr

(Dollars in millions except for per share Data) (Unaudited)1.0 Assets1.1 Cash and Cash equivalents 2,673.00$ 2,183.00$ 4,420.00$ 5,469.00$ 1.2 Short Term investments 100.00$ 279.00$ 729.00$ 883.00$ 1.3 Accounts Receivable 3,200.00$ 3,288.00$ 3,121.00$ 2,870.00$ 1.4 Current portion of customer and commerical financing 595.00$ 781.00$ 261.00$ 774.00$ 1.5 Deferred income taxes 1,423.00$ 1,495.00$ 1,765.00$ 1,362.00$ 1.6 Inventories, net of advances and progress bilings 8,729.00$ 8,349.00$ 8,967.00$ 9,151.00$

1.6.1 Total Current assets 16,720.00$ 16,375.00$ 19,263.00$ 20,509.00$ 1.7 Customer and Commercial financing 4,970.00$ 4,930.00$ 4,339.00$ 3,114.00$ 1.8 Property, plant,and equipment, net 8,435.00$ 8,589.00$ 8,391.00$ 8,266.00$ 1.9 Deferred income taxes 415.00$ 411.00$ 15.00$ 143.00$

1.10 Goodwill 2,250.00$ 2,312.00$ 2,395.00$ 2,478.00$ 1.11 Prepaid pension expense 3,559.00$ 3,513.00$ 3,271.00$ 3,014.00$ 1.12 Other assets 845.00$ 542.00$ 350.00$ 356.00$

1.13 Total Assets 37,194.00$ 36,672.00$ 38,024.00$ 37,880.00$

2.0 Liabilities and Equity

2.1 Accounts payable and other liabilities 11,552.00$ 10,733.00$ 11,548.00$ 9,901.00$ 2.2 Advances in excess of related costs 1,062.00$ 1,251.00$ 1,575.00$ 1,714.00$ 2.3 Income taxes payable 813.00$ 569.00$ 298.00$ 474.00$ 2.4 Short-term debt and current portion of long term debt 744.00$ 869.00$ 731.00$ 637.00$

2.4.1 Total Current liabilities 14,171.00$ 13,422.00$ 14,152.00$ 12,726.00$ 2.5 Accrued retiree health care 4,894.00$ 4,831.00$ 4,796.00$ 4,800.00$ 2.6 Long-term debt 5,909.00$ 6,103.00$ 6,123.00$ 6,852.00$ 2.7 Shareholder's equity:

Common Shares, par value-1,200,000,000 shares authorizedShares issued-1,011,870,159 and 1,000,029,538 5,059.00$ 5,059.00$ 5,000.00$ 4,967.00$

2.8 Other Equity accounts 7,161.00$ 7,257.00$ 7,953.00$ 8,535.00$ 2.9 Total Shareholder's equity 12,220.00$ 12,316.00$ 12,953.00$ 13,502.00$

2.10 Total Liabilities & Equity 37,194.00$ 36,672.00$ 38,024.00$ 37,880.00$

TABLE T-1

The Boeing CompanyConsolidated Income Statement


(Unaudited)

1 Sales and other operating revenues 42,793.00$ 56,154.00$ 45,800.00$ 35,453.00$ 2 Operating costs and expenses 37,980.00$ 50,546.00$ 40,644.00$ 29,383.00$ 3 General and administrative expense 1,509.00$ 1,993.00$ 2,187.00$ 1,819.00$ 4 Research and Development expense 1,026.00$ 1,895.00$ 1,924.00$ 1,633.00$ 5 Shared-based plans 151.00$ 153.00$ (99.00)$ 133.00$ 6 Special charges 953.00$ 1,400.00$ 7 Earnings (loss) from operations 2,200.00$ 1,567.00$ (256.00)$ 2,485.00$ 8 Other income, principally interest 501.00$ 283.00$ 428.00$ 388.00$ 9 Interest and debt expense (330.00)$ (453.00)$ (513.00)$ (393.00)$ 10 Earnings (Loss) before income taxes 2,371.00$ 1,397.00$ (341.00)$ 2,480.00$ 11 Income taxes (benefit) 724.00$ 277.00$ (163.00)$ 662.00$ 12 Net earnings(loss) 1,647.00$ 1,120.00$ (178.00)$ 1,818.00$ 13 Earnings(loss) per share

13.1 Basic 1.78$ 1.16$ (0.18)$ 1.88$ 13.2 Diluted 1.76$ 1.15$ (0.18)$ 1.85$ 14 Cash dividends per share 0.42$ 0.56$ 0.56$ 0.55$

TABLE T-2

The Boeing Company Divisional Summary

Item Financial Description/ Vs Division 1999 % of 1998 % of 1997 % ofNo. 3rd Qtr Business Business Business

(unaudited)1.0 Total Assets1.1 Commerical Aircraft 12,568.00$ 34% 12,763.00$ 34%1.2 Military Aircraft and Missiles 3,560.00$ 10%1.3 Space and Communications 3,032.00$ 8%1.4 Information, Space and Defense Systems 6,592.00$ 18% 6,597.00$ 17%1.5 Customer and Commerical financing/Other 5,751.00$ 16% 4,716.00$ 12%1.6 Unallocated 11,761.00$ 32% 13,948.00$ 37%1.7 Total 36,672.00$ 100% 38,024.00$ 100%

2.0 Liabilities2.1 Commerical Aircraft 6,127.00$ 25% 6,917.00$ 28%2.2 Military Aircraft and Missiles 743.00$ 3%2.3 Space and Communications 1,335.00$ 5%2.4 Information, Space and Defense Systems 2,078.00$ 9% 2,379.00$ 9%2.5 Customer and Commerical financing/Other 301.00$ 1% 396.00$ 2%2.6 Unallocated 15,850.00$ 65% 15,379.00$ 61%2.7 Total 24,356.00$ 100% 25,071.00$ 100%

3.0 Sales/Revenues3.1 Commerical Aircraft 28,419.00$ 66% 35,545.00$ 63% 26,929.00$ 59%3.2 Military Aircraft and Missiles 8,937.00$ 21% 12,990.00$ 23%3.3 Space and Communications 4,935.00$ 12% 6,889.00$ 12%3.4 Information, Space and Defense Systems 19,879.00$ 35% 18,125.00$ 40%3.5 Customer and Commerical financing/Other 603.00$ 1% 730.00$ 1% 746.00$ 2%

Accounting differences/eliminations (101.00)$ 0%3.6 Total 42,793.00$ 100% 56,154.00$ 100% 45,800.00$ 100%4.0 Net Earnings4.1 Commerical Aircraft 1,318.00$ 80% 63.00$ 6% (1,837.00)$ 4.2 Military Aircraft and Missiles 792.00$ 48% 1,283.00$ 115%4.3 Space and Communications 292.00$ 18% 248.00$ 22%4.4 Information, Space and Defense Systems 1,531.00$ 1,317.00$ 4.5 Customer and Commerical financing/Other 330.00$ 20% 367.00$ 33% 381.00$ 4.6 Accounting differences (164.00)$ -10% 43.00$ 4% 71.00$ 4.7 Share-based plans (151.00)$ -9% (153.00)$ -14% 99.00$ 4.8 Other unallocated costs (217.00)$ -13% (284.00)$ -25% (287.00)$ 4.9 Earnings(loss) from operations 2,200.00$ 1,567.00$ (256.00)$

4.10 Other Income, principally Interest 501.00$ 30% 283.00$ 25% 428.00$ 4.11 Interest and debt expense (330.00)$ -20% (453.00)$ -40% (513.00)$ 4.12 Earnings (loss) before taxes 2,371.00$ 1,397.00$ (341.00)$ 4.13 Income tax (benefit) 724.00$ -44% 277.00$ -25% (163.00)$ 4.14 Total 1,647.00$ 100% 1,120.00$ 100% (178.00)$

Not Available

Not Available

TABLE T-3

The Boeing CompanyDivisional Summary

Item Financial Description/ Vs Division 1999 % of 1998 % of 1997 % of 1996No. 3rd Qtr Business Business Business

(unaudited)5.0 Depreciation & Amortization5.1 Commerical Aircraft 628.00$ 39% 570.00$ 39% 605.00$ 5.2 Military Aircraft and Missiles 208.00$ 13%5.3 Space and Communications 142.00$ 9%5.4 Information, Space and Defense Systems 350.00$ 22% 365.00$ 25% 299.00$ 5.5 Customer and Commerical financing/Other 135.00$ 8% 91.00$ 6% 110.00$ 5.6 Unallocated 509.00$ 31% 432.00$ 30% 252.00$ 5.7 Total 1,622.00$ 100% 1,458.00$ 100% 1,266.00$

6.0 Research and Development6.1 Commerical Aircraft 496.00$ 48% 1,021.00$ 54% 1,208.00$ 63% 1,156.00$ 6.2 Military Aircraft and Missiles 175.00$ 17% 304.00$ 6.3 Space and Communications 355.00$ 35% 570.00$ 6.4 Information, Space and Defense Systems 874.00$ 46% 716.00$ 37% 477.00$ 6.5 Total 1,026.00$ 100% 1,895.00$ 100% 1,924.00$ 100% 1,633.00$

7.0 Net Capital Expeditures7.1 Commerical Aircraft 754.00$ 48% 531.00$ 38% 336.00$ 7.2 Military Aircraft and Missiles 198.00$ 7.3 Space and Communications 273.00$ 7.4 Information, Space and Defense Systems 471.00$ 30% 463.00$ 33% 304.00$ 7.5 Customer and Commerical financing/Other 1.00$ 0% 1.00$ 0% 1.00$ 7.6 Unallocated 358.00$ 23% 396.00$ 28% 330.00$ 7.7 Total 1,584.00$ 100% 1,391.00$ 100% 971.00$

8.0 Contractural Backlog8.1 Commerical Aircraft 75.70$ 75% 86,057.00$ 76% 93,788.00$ 77% 86,151.00$ 8.2 Military Aircraft and Missiles 16.50$ 16% 17,007.00$ 15%8.3 Space and Communications 8.70$ 9% 9,832.00$ 9%8.4 Information, Space and Defense Systems 26,839.00$ 24% 27,852.00$ 23% 28,022.00$ 8.5 Total 100.90$ 100% 112,896.00$ 100% 121,640.00$ 100% 114,173.00$

Not Available

Not Available

TABLE T-3

The Boeing CompanyConsolidated Financial Ratio Analysis

Item Ratio Type Ratio Description 1999 1999 1998 1997 1996No. Industry 3rd Qtr

Average

1.0 Liquidity Ratios1.1 Current Ratio Current Assets/Current Liabilities 2.0x 1.18 1.22 1.36 1.611.2 Quick Ratio (Current Assets-Inventory)/ 0.8x 0.56 0.60 0.73 0.89

Current Liabilities2.0 Asset Management Ratios2.1 Inventory Turnover Sales per Period/Inventories 3.4x 4.90 6.73 5.11 3.872.2 Fixed Asset Turnover Sales/Net Fixed Assets 6.9x 4.90 6.54 5.46 4.292.3 Total Assets Turnover Sales/Total Assets 1.3x 1.15 1.53 1.20 0.942.4 Day Sales Outstanding A/R/(Ave sales per Day/360) 52 days 27 21 25 29 2.5 Operating Captial Requirements Ratio Operating Capital/Sales 22.46% 17.55% 25.06% 38.55%3.0 Debt Management Ratios3.1 Debt Ratio Total Debt/Total Assets 61.4%* 67.15% 66.42% 65.93% 64.36%3.2 Times Interest Earned Ratio EBIT/Interest Expense 4.3x 8.18 4.08 0.34 7.31 4.0 Profitability Ratios4.1 Profit Margin Net Profit/Sales 3.85% 1.99% -0.74% 5.13%4.2 Basic Earning Power EBIT/Total Assets 7.26% 5.04% 0.45% 7.58%4.3 Operation Profit Margin after Taxes (EBIT(1-Tax Rate))/Sales 5.05% 2.64% 0.30% 6.48%4.5 Return on Assets Net Profit/Total Assets 2.6%* 4.43% 3.05% -0.47% 4.80%4.6 Return of Equity Net Profit/Common Equity 13.48% 9.09% -1.37% 13.46%5.0 Market Value Ratios5.1 Price Earnings Ratio Price per Share/ 37.6 31.0

Earnings per Share5.2 Book Value per Share Common Equity/ 12.62 12.95 15.18

Shares Outstanding5.3 Tax Rate 19.80% 34.20% 29.45.4 Number of employees 231000 238000 2110005.5 Beta coeffiecient 1.10

TABLE T-4

Lockheed Martin Consolidated Financial Balance Sheet


(Dollars in millions except for per share Data) (Unaudited)1.0 Assets1.1 Current assets -$

1.1.1 Cash and equivalents 285.00$ 1.1.2 Receivables 4,178.00$ 5,009.00$ 4,999.00$ 1.1.3 Inventories 4,293.00$ 3,144.00$ 2,953.00$ 1.1.4 Deferred income taxes 1,109.00$ 1,256.00$ 1,356.00$ 1.1.5 Other current assets 746.00$ 696.00$ 1,038.00$ 1.1.6 Total Current assets 10,611.00$ 10,105.00$ 10,346.00$ 1.2 Property, plant and equipment 3,513.00$ 3,669.00$ 3,721.00$ 1.3 Intangible asets related to contracts and programs acquired 1,418.00$ 1,566.00$ 1,767.00$ 1.4 Cost in excess of net assets acquired 9,521.00$ 9,856.00$ 10,394.00$ 1.5 Other assets 3,681.00$ 3,165.00$ 3,312.00$

Total Assets -$ 28,744.00$ 28,361.00$ 29,540.00$

2.0 Liabilities and Equity

2.1 Current Liabilities:2.1.1 Accounts payable 1,382.00$ 1,234.00$ 1,294.00$ 2.1.2 Customer advances and amounts in excess of costs incurred 4,012.00$ 3,644.00$ 2,600.00$ 2.1.3 Salaries, benefits, and payroll taxes 842.00$ 924.00$ 991.00$ 2.1.4 Income taxes 553.00$ 364.00$ 925.00$ 2.1.5 Short term borrowings 1,043.00$ 494.00$ 1,100.00$ 2.1.6 Current maturities of long term debt 886.00$ 876.00$ 180.00$ 2.1.7 Other current liabilities 1,549.00$ 1,653.00$ 1,582.00$ 2.1.8 Total current liabilities 10,267.00$ 9,189.00$ 8,672.00$ 2.2 Long term debt 8,957.00$ 10,528.00$ 10,188.00$ 2.3 Post-retirement benefit liabilities 1,903.00$ 1,993.00$ 2,077.00$ 2.4 Other liabilities 1,480.00$ 1,475.00$ 1,747.00$ 2.5 Stockholders' equity

2.5.1 Series A Preferred Stock 1,000.00$ 2.5.2 Common stock,$1 par value 393.00$ 194.00$ 193.00$ 2.5.3 Additional paid in capital 70.00$ 25.00$ 92.00$ 2.5.4 Retained earnings 5,856.00$ 5,173.00$ 5,823.00$ 2.5.5 Unearned ESOP shares (182.00)$ (216.00)$ (252.00)$

Total Stockholders' equity 6,137.00$ 5,176.00$ 6,856.00$ 2.6 Total Liabilities & Equity -$ 28,744.00$ 28,361.00$ 29,540.00$

TABLE T-5

Lockheed Martin Consolidated Income Statement


(Dollars in millions except for per share data) (Unaudited)

1 Net Sales 26,266.00$ 28,069.00$ 26,875.00$ 2 Cost of sales 23,914.00$ 25,772.00$ 24,594.00$ 3 Earnings from operations 2,352.00$ 2,297.00$ 2,281.00$ 4 Other income and expenses, net 170.00$ 482.00$ 452.00$ 5 Earnings before Interest & taxes 1,308.00$ 2,522.00$ 2,779.00$ 2,733.00$ 6 Interest expense (583.00)$ (861.00)$ (842.00)$ (700.00)$ 7 Earnings before income taxes 725.00$ 1,661.00$ 1,937.00$ 2,033.00$ 8 Income tax expense (281.00)$ (660.00)$ (637.00)$ (686.00)$ 9 Net Earnings (1996-1998) 444.00$ 1,001.00$ 1,300.00$ 1,347.00$

Change in acounting (355.00)$ Net Earnings 89.00$

10 Earnings (loss per common share)10.1 Basic 0.23$ 2.66$ (1.56)$ 3.40$ 10.2 Diluted 0.23$ 2.63$ (1.56)$ 3.04$

TABLE T-6

Lockheed Martin Divisional Summary

Financial Description/ 1998 % of 1997 % of 1996 % of Vs Division Business Business Business

(Dollars in millions)Total Assets

Space & Strategic Missiles 5,228.00$ 4,599.00$ 3,758.00$ Electronics 10,355.00$ 10,619.00$ 11,363.00$ Aeronautics 3,890.00$ 3,757.00$ % 4,201.00$ Information & Services 4,726.00$ % 5,150.00$ 6,111.00$ Energy and Other 4,545.00$ 4,236.00$ 4,107.00$ Total 28,744.00$ 28,361.00$ 29,540.00$

Sales/RevenuesSpace & Strategic Missiles 7,461.00$ 8,303.00$ 7,904.00$ Electronics 7,342.00$ 7,069.00$ 6,675.00$ Aeronautics 5,996.00$ 6,045.00$ 5,596.00$ Information & Services 5,212.00$ 6,468.00$ 5,893.00$ Energy and Other 255.00$ 184.00$ 807.00$ Total 26,266.00$ 28,069.00$ 26,875.00$

Net EarningsSpace & Strategic Missiles 976.00$ 1,096.00$ 973.00$ Electronics 733.00$ 576.00$ 673.00$ Aeronautics 654.00$ 612.00$ 441.00$ Information & Services (25.00)$ 111.00$ 290.00$ Energy and Other 184.00$ 384.00$ 356.00$ Total 2,522.00$ 2,779.00$ 2,733.00$

Net Capital ExpedituresSpace & Strategic Missiles 271.00$ % 293.00$ 264.00$ Electronics 185.00$ 189.00$ 213.00$ Aeronautics 119.00$ 104.00$ 75.00$ Information & Services 78.00$ 137.00$ 104.00$ Energy and Other 44.00$ 27.00$ 81.00$ Total 697.00$ 750.00$ 737.00$

TABLE T-7

Lockheed MartinConsolidated Financial Ratio Analysis

Item Ratio Type Ratio Description 1999 1999 1998 1997 1996No. Industry 3rd Qtr

Average

1.0 Liquidity Ratios1.1 Current Ratio Current Assets/Current Liabilities 2.0x 1.03 1.10 1.191.2 Quick Ratio (Current Assets-Inventory)/ 0.8x 0.62 0.76 0.85

Current Liabilities2.0 Asset Management Ratios2.1 Inventory Turnover Sales per Period/Inventories 3.4x 6.12 8.93 9.102.2 Fixed Asset Turnover Sales/Net Fixed Assets 6.9x 7.48 7.65 7.222.3 Total Assets Turnover Sales/Total Assets 1.3x 0.91 0.99 0.912.4 Day Sales Outstanding A/R/(Ave sales per Day/360) 52 days 57 64 67 2.5 Operating Captial Requirements Ratio Operating Capital/Sales 20.86% 20.15% 21.82%3.0 Debt Management Ratios3.1 Debt Ratio Total Debt/Total Assets 61.4%* 66.88% 69.52% 63.85%3.2 Times Interest Earned Ratio EBIT/Interest Expense 4.3x 3.82 4.36 3.98 4.0 Profitability Ratios4.1 Profit Margin Net Profit/Sales 3.81% 4.63% 5.01%4.2 Basic Earning Power EBIT/Total Assets 8.77% 9.80% 9.25%4.3 Operation Profit Margin after Taxes (EBIT(1-Tax Rate))/Sales 5.86% 6.04% 6.20%4.5 Return on Assets Net Profit/Total Assets 2.6%* 3.48% 4.58% 4.56%4.6 Return of Equity Net Profit/Common Equity 6.60% 16.31% 25.12% 19.65%5.0 Market Value Ratios5.1 Price Earnings Ratio Price per Share/ 17.0 15.7 15.5

Earnings per Share5.2 Book Value per Share Common Equity/ 15.60 13.31 15.19

Shares Outstanding5.3 Tax Rate 37.50% 32.90% 39.50%

5.4 Number of employees 165,000 173,000 190,000

5.5 Beta Coefficient 0.80

TABLE T-8

Financial Comparisons

Figures

The Boeing CompanyDivisional Total Assets Trend Analysis

05

10152025303540

Dollars(in Millions)

1996 1997 1998

Commercial Aircraft

Military Aircraft &MissilesSpace andCommunicationsInformation, Space andDefense SystemsCustomer &Commercial FinancingUnallocated

Note: Information, Space and Defense was divided into (1) Military Aircraft and Missiles and (2)Space and Communications divisions in 1998

FIGURE F-1

The Boeing CompanyDivisional Sales/Revenue Trend Analysis

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0


1996 1997 1998 19993rdQtr

Commerical Aircraft

Military Aircraft andMissilesSpace andCommunicationsInformation, Space &DefenseCustomer & commercialFinancing


FIGURE F-2

The Boeing CompanyNet Earnings

Divisional Trend Analysis

-80-60-40-20

020406080

100120


1996 1997 1998 19993rdQtr

Commercial Aircraft

Military Aircraft &MissilesSpace andCommunicationsInformation, Space andDefense SystemsCustomer &Commercial FinancingUnallocated

FIGURE F-3

The Boeing CompanyNet Capital ExpendituresDivisional Trend Analysis

05

101520253035404550


1996 1997 1998

Commercial Aircraft

Military Aircraft andMissilesSpace andCommunicationsInformation, Space &DefenseCustomer andCommercial FinancingUnallocated

FIGURE F-4

The Boeing CompanyDivisional Total Liabilities Trend Analysis

0

10

20

30

40

50

60

70


1996 1997 1998

Commerical Aircraft

Military Aircraft andMissilesSpace andCommunicationsInformation, Space &Defense Customer andCommercial FinancingUnallocated

Note: Information, Space and Defense was divided into (1) Military Aircraft and Missiles and (2)Space and Communications divsions in 1998

FIGURE F-5

The Boeing CompanyResearch and DevelopmentDivisional Trend Analysis

01020304050607080


1996 1997 1998 19993rdQtr

Commercial Aircraft

Military Aircraft andMissilesSpace andCommunicationsInformation, Space &Defense


FIGURE F-6

The Boeing CompanyLiquidity Ratio Trend Analysis

0

0.5

1

1.5

2

2.5

1996 1997 1998 1999 3rdqtr

Current Ratio

Quick Ratio

Industry Average-CurrentIndustry Average-Quick

FIGURE F-7

The Boeing CompanyAsset Management Ratio Trend Analysis

0

1

2

3

4

5

6

7

8

1996 1997 1998 1999 3rdQtr

Inventory Turnover

Total AssetsTurnoverFixed Asset Turnover

Industry Average-InventoryIndustry Average-TotalIndustry Average-Fixed

FIGURE F-8

Lockheed MartinDivisional Total Assets Trend Analysis

0

2000

4000

6000

8000

10000

12000

1996 1997 1998

Space & Missiles

Electronics

Aeronautics

Information &ServicesEnergy and Other

Electronics division is the major Total Assets contributor

FIGURE F-9

Lockheed MartinDivisional Sales Trend Analysis

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

1996 1997 1998

Space & Missiles

Electronics

Aeronautics


• Space & Missiles and Electronics Divisions equally contributing to Sales

FIGURE F-10

Lockheed MartinNet Earnings

Divisional Trend Analysis

-200

0

200

400

600

800

1000

1200

1996 1997 1998

Space & Missiles

Electronics

Aeronautics


• Space & Missiles leading contributor to Net Earnings

FIGURE F-11

Lockheed MartinNet Capital ExpendituresDivisional Trend Analysis

0

50

100

150

200

250

300

1996 1997 1998

Space & Missiles

Electronics

Aeronautics


• Space & Missiles is leading contributor to Net Capital Expenditures

FIGURE F-12

Lockheed MartinLiquidity Ratio Trend Analysis

0

0.5

1

1.5

2

2.5

1996 1997 1998

Current Ratio

Quick Ratio

Current RatioIndustry Ave.Quick Ratio IndustryAve.

FIGURE F-13

Lockheed MartinAsset Management Ratio Trend Analysis

0123456789

10

1996 1997 1998

Inventory TurnoverRatioInventory TurnoverIndustry Ave.Fixed Asset TurnoverRatioFixed Asset TurnoverIndustry Ave.Total Assets TurnoverRatioTotal Assets TurnoverIndustry Ave.

FIGURE F-14

Consolidated Total AssetsFinancial Comparison

05000

10000150002000025000300003500040000


1996 1997 1998

The Boeing Company Lockheed Martin

•Boeing’s total Assets are 1.30 times greater than LM•Boeing’s assets are decreasing while LM are remaining roughly the same

FIGURE F-15

Consolidated SalesFinancial Comparison

0

10000

20000

30000

40000

50000

60000

Dollars(in

Millions)

1996 1997 1998


•Boeing sales are increasing while LM remain basically flat•Boeing sales are 1.69x greater than LM over the last three years

•Commercial aircraft division account for 63% of Total Sales

FIGURE F-16

Consolidated Net EarningsFinancial Comparison

-2000

200400600800

100012001400160018002000


1996 1997 1998


•LM operations more efficient than Boeing over this three year period•Earnings are comparable to Boeing and yet Boeing has much more sales

•LM earnings are decreasing

FIGURE F-17

Consolidated Earnings From OperationsFinancial Comparison

-500

0

500

1000

1500

2000

2500


1996 1997 1998


•LM cost of operations much lower than Boeings respect to Sales•LM earnings remain consistent with flat sales receipts•Boeing needs much improvement in its cost of operations

FIGURE F-18

Consolidated Earnings per ShareFinancial Comparison

-2-1.5

-1-0.5

00.5

11.5

22.5

33.5

Dollars(per Share)

1996 1997 1998


FIGURE F-19

•LM has generally higher earnings per share than Boeing•More efficient cost of operations•Effectively utilizing assets and inventories

•Boeing has much room for improvement

Consolidate Return on Assets(ROA)Profitability Financial Comparison

0 1 2 3 4 5 6 7

1996

1997

1998

%


• Shows that LM much more efficient at operations than Boeing

FIGURE F-20

Consolidated Return on Equity (ROE)Profitability Financial Comparison

-5 0 5 10 15 20 25 30

1996

1997

1998

%


• Shows that LM much more efficient at operations than Boeing

FIGURE F-21

Consolidated Profit MarginProfitability Financial Comparison

-2 -1 0 1 2 3 4 5 6

1996

1997

1998

%


• LM Profit Margins are decreasing even though Sales have remained the same• Shows LM has a more efficient operations than Boeing

FIGURE F-22

Consolidated InventoriesFinancial Comparison

0

2000

4000

6000

8000

10000


1996 1997 1998


•LM inventories are increasing while Boeing’s inventory is decreasing•LM inventory to Total Assets ratio is 50% less than Boeing’s

•Shows that LM operations are more efficient than Boeing’s

FIGURE F-23

Consolidated Current RatioLiquidity Financial Comparison

0 0.5 1 1.5 2 2.5

1996

1997

1998

The Boeing Company Lockheed Martin Industry Average

•Ability to meet short term obligations•Ratio is much lower than industry average•Shows the 1998 Liquidity position relatively weak

•Must liquidate current assets at 97% (1/1.03) for LM and at 61% (1/1.22) for Boeing of book value and still payoff creditors in full

FIGURE F-24

Consolidated Quick RatioLiquidity Financial Comparison

0 0.2 0.4 0.6 0.8 1

1996

1997

1998


•Ratio is decreasing compared to the industry average•Both companies would have to liquidate its inventory in order to payoff itscurrent liabilities

•Inventories are the least liquid of current assets

FIGURE F-25

Consolidated Inventory Turnover RatioAsset Management Ratio Financial Comparison

0 2 4 6 8 10

1996

1997

1998


•Inventory sold out and restocked higher than the industry average•LM ratio is higher than Boeing•Shows possibly superior merchandising and/or a shortage of needed inventory to support sales for both companies

FIGURE F-26

0 2 4 6 8 10

1996

1997

1998


Consolidated Fixed Asset RatioAsset Management Ratio Financial Comparison

•Shows that LM is effectively using its plant and equipment compared to the industry average and to Boeing•Boeing requires improvement to better utilize its plant and equipment

FIGURE F-27

0 0.5 1 1.5 2

1996

1997

1998


Consolidated Total Asset RatioAsset Management Ratio Financial Comparison

•Evaluates Total Asset usage•LM is generating less sales than total asset investment•Boeing is generating more sales than total asset investment

FIGURE F-28

0 10 20 30 40 50 60 70 80

1996

1997

1998

Days


Consolidated Day Sales Outstanding RatioAsset Management Ratio Financial Comparison

•Represents the average length of time after making a sale before receiving a cash payment•Boeing is approximately 2.5 times better than industry average•LM is exceeding the industry average on collecting payments

FIGURE F-29

Consolidated Debt RatioDebt Management Ratio Financial Comparison

56 58 60 62 64 66 68 70 72

1996

1997

1998

%


• Shows how the company is financed•Both companies debt ratios are higher than the industry average

•Creditors have supplied approximately 67% of the total financing•May make it costly to borrow additional funds without raising more equitycapital

FIGURE F-30

Consolidated Times Interest Earned RatioDebt Management Ratio Financial Comparison

0 1 2 3 4 5 6 7 8

1996

1997

1998


• Shows the ability to pay interest•Both companies have sufficient funds to meet annual interest costs even ifoperating incomes declines

FIGURE F-31

Divisional SalesMilitary Aircraft & Space

Financial Comparison

0

5,000

10,000

15,000

20,000


1996 1997 1998


FIGURE F-32

•Boeing and LM Military Aircraft and Space Divisions Sales are nearly equal•Note Boeing overall Sales exceed LM by 1.6 times

•Boeing’s Sales are increasing while LM’s are remaining flat

Divisional Net EBITMilitary Aircraft & Space


0200400600800

10001200140016001800

1996 1997 1998


FIGURE F-33

•Military Aircraft & Space did not contribute to the overall 1997 Earnings per share loss

Divisional Total AssetsMilitary Aircraft & Space


0100020003000400050006000700080009000

10000


1996 1997 1998


FIGURE F-34

Divisional Net Capital ExpendituresMilitary Aircraft & Space


050

100150200250300350400450500


1996 1997 1998


FIGURE F-35

FINANCIAL STATEMENT AND RATIO ANALYSIS TABLES

Documents

Transcript of FINANCIAL STATEMENT AND RATIO ANALYSIS TABLES