Boeing Co.

LOCKHEED MARTIN

Analyze these two companies and determine which one is better and why.

in Miions Are we generating enough returns on revenues and investments? Profit Margin 15,42% 5,29% 4,95% 15,44% 6,00% 5,49% 14,59% 5,39% 5,48% 14,57% 5,18% 5,44% 18,55% 8,78% 8,88% Net Profit Margin, Return on Assets (ROA per Share (EPS) 5,98 1S 13,43 y of Earnings ratio 1,63 181 1,63 Are we using the firm's resources effldently? 0,93 0,30 11,74 7.20 1218,13 31,08 50,73 1198,48 0,30 0,32 13,23 7,71 1172,81 27,58 47,32 1153,08 10,71 Payables Turnover Days Inventory Outstanding (DIO Days Sales Outstanding (DSO) Days Payables Outstanding (DPO) Cash Conversion Cycle 1229,77 33,09 48,02 121484 1144,16 34,09 50,56 1127,69 934,18 58,55 916,73 Are we meeting our current obWgatlons? Capital $13588 110681782212354 $ 8.892 1,26 1,20 1,35 1,25 Are we handing debt approprlately? Finandal LEVerage 14,90 93,29% $10417 11.094 11813 $13.11215.214 260,09 83,95% 91,26% 99,09% 99,62% How do we appear to our shareholders? (2,87) (3,58) 4,29) 5,60) Market Value per ield Return on Sales (OS 5,29% Return on Assets (ROA Finandal LEVerage Return on Equity (IDE 6,00% 091 5,49% 5,39% 1,02 5,48% 14,90 81,70% 5,18% 105 5,44% 8,78% 1,01 8,88% 260.09 2309,01% 4,95% 30,82% 62,85% 599,14% in Millions 31/12/2013 31/12/2014 31/12/2015 31/12/2016 Are we generating enough returns on revenues and investments ? 31/12/2017 PROFITABILITY Ratios Gross Profit Margin Net Profit Margin, 9,23% 6,57% 8,24% 10,27% 7,93% 9,76% 9,74% 7,81% 7,31% 10,71% 11,22% 11,09% 10,87% 3,92% 4.30% also known as Return on Sales (ROS) Return on Assets (RDA) Earnings per Share (EPS) [Diluted) Quality of Earnings ratio EFFICIENCY Ratios Asset Turnover Inventory Turnover Receivables Turnover Payables Turnover Days Inventory Outstanding (DIO) Days Sales Outstanding (DSO) Days Payables Outstanding (DPO) Cash Conversion Cycle 9,29 11,41 $ 11,62$ 17,71 $ 6,96 1,52 1,07 1,41 0,98 3,23 Are we using the firm's resources efficiently? 1,25 13,83 7,77 29,47 26,39 46,95 12,39 60,95 1,23 14,20 7,75 26,06 25,71 47,10 14,01 58,80 0,94 8,39 5,72 21,09 43,49 63,78 17,30 89,97 0,99 9,03 5,76 25,52 40,41 63,36 14,30 89,47 1,10 10,14 5,93 31,02 35,99 61,51 11,77 85,74 Are we meeting our current obligations? IQUIDITY Ratios Working Capital Current Ratio SOLVENCY Ratios Financial LEVerage Debt ratio Free Cash Flow INVESTMENT Ratios Dividends per share Market Value per share Dividend Yield 2.209 $ 1.210 $ 655 $ 2.566 $ 4.824 1,20 1,11 1,05 1,20 1,38 Are we handling debt appropriately? 7,36 10,90 15,92 31,64 68,11 86,41% 90,90% 93,72% 96,64% 101,31% 5.382 $ 6.040 $ 6.366 $ 7.802 How do we appear to our shareholders ? $(168,67157,00$(168,59)$(123,67 $(333,38) Price-to-Earnings (P/E) ratio Price-to-Sales (P/S) ratio Price-to-Book (P/B) ratlo DuPont Analysis of ROE Return on Sales (ROS as Net Profit Margin Asset Turnover ROS x Asset turnover ROA x Financial LE ROE also known Return on Assets (RDA) Financial LEVerage Return on Equity (RDE) 6,57% 1,25 8,24% 7,36 60,61% 7,93% 1,23 9,76% 10,90 106,29% 7,81% 0,94 7,31% 15,92 116,40% 11,22% 0,99 11,09% 31,64 350,89% 3,92% 1,10 4,30% 68,11 293,12% in Miions Are we generating enough returns on revenues and investments? Profit Margin 15,42% 5,29% 4,95% 15,44% 6,00% 5,49% 14,59% 5,39% 5,48% 14,57% 5,18% 5,44% 18,55% 8,78% 8,88% Net Profit Margin, Return on Assets (ROA per Share (EPS) 5,98 1S 13,43 y of Earnings ratio 1,63 181 1,63 Are we using the firm's resources effldently? 0,93 0,30 11,74 7.20 1218,13 31,08 50,73 1198,48 0,30 0,32 13,23 7,71 1172,81 27,58 47,32 1153,08 10,71 Payables Turnover Days Inventory Outstanding (DIO Days Sales Outstanding (DSO) Days Payables Outstanding (DPO) Cash Conversion Cycle 1229,77 33,09 48,02 121484 1144,16 34,09 50,56 1127,69 934,18 58,55 916,73 Are we meeting our current obWgatlons? Capital $13588 110681782212354 $ 8.892 1,26 1,20 1,35 1,25 Are we handing debt approprlately? Finandal LEVerage 14,90 93,29% $10417 11.094 11813 $13.11215.214 260,09 83,95% 91,26% 99,09% 99,62% How do we appear to our shareholders? (2,87) (3,58) 4,29) 5,60) Market Value per ield Return on Sales (OS 5,29% Return on Assets (ROA Finandal LEVerage Return on Equity (IDE 6,00% 091 5,49% 5,39% 1,02 5,48% 14,90 81,70% 5,18% 105 5,44% 8,78% 1,01 8,88% 260.09 2309,01% 4,95% 30,82% 62,85% 599,14% in Millions 31/12/2013 31/12/2014 31/12/2015 31/12/2016 Are we generating enough returns on revenues and investments ? 31/12/2017 PROFITABILITY Ratios Gross Profit Margin Net Profit Margin, 9,23% 6,57% 8,24% 10,27% 7,93% 9,76% 9,74% 7,81% 7,31% 10,71% 11,22% 11,09% 10,87% 3,92% 4.30% also known as Return on Sales (ROS) Return on Assets (RDA) Earnings per Share (EPS) [Diluted) Quality of Earnings ratio EFFICIENCY Ratios Asset Turnover Inventory Turnover Receivables Turnover Payables Turnover Days Inventory Outstanding (DIO) Days Sales Outstanding (DSO) Days Payables Outstanding (DPO) Cash Conversion Cycle 9,29 11,41 $ 11,62$ 17,71 $ 6,96 1,52 1,07 1,41 0,98 3,23 Are we using the firm's resources efficiently? 1,25 13,83 7,77 29,47 26,39 46,95 12,39 60,95 1,23 14,20 7,75 26,06 25,71 47,10 14,01 58,80 0,94 8,39 5,72 21,09 43,49 63,78 17,30 89,97 0,99 9,03 5,76 25,52 40,41 63,36 14,30 89,47 1,10 10,14 5,93 31,02 35,99 61,51 11,77 85,74 Are we meeting our current obligations? IQUIDITY Ratios Working Capital Current Ratio SOLVENCY Ratios Financial LEVerage Debt ratio Free Cash Flow INVESTMENT Ratios Dividends per share Market Value per share Dividend Yield 2.209 $ 1.210 $ 655 $ 2.566 $ 4.824 1,20 1,11 1,05 1,20 1,38 Are we handling debt appropriately? 7,36 10,90 15,92 31,64 68,11 86,41% 90,90% 93,72% 96,64% 101,31% 5.382 $ 6.040 $ 6.366 $ 7.802 How do we appear to our shareholders ? $(168,67157,00$(168,59)$(123,67 $(333,38) Price-to-Earnings (P/E) ratio Price-to-Sales (P/S) ratio Price-to-Book (P/B) ratlo DuPont Analysis of ROE Return on Sales (ROS as Net Profit Margin Asset Turnover ROS x Asset turnover ROA x Financial LE ROE also known Return on Assets (RDA) Financial LEVerage Return on Equity (RDE) 6,57% 1,25 8,24% 7,36 60,61% 7,93% 1,23 9,76% 10,90 106,29% 7,81% 0,94 7,31% 15,92 116,40% 11,22% 0,99 11,09% 31,64 350,89% 3,92% 1,10 4,30% 68,11 293,12%