STEP #4: (10 pts.) Calculate the following Liquidity and Efficiency ratios for The Boeing Company for both 2018 and 2019. Provide an analysis of what these ratios reveal about The Boeing Company's liquidity and efficiency. (See pgs. 506 508 of your textbook) Current Ratio Acid-Test Ratio Accounts Receivable Turnover Inventory Turnover Days' Sales Uncollected Total Asset Turnover The Boeing Company and Subsidiaries Consolidated Statements of Cash Flows 2019 2018 2017 ($636) $10,460 $8,458 212 2,271 443 250 (691) 334 202 2,114 93 (3) (75) 247 202 2,047 113 2 (21) 293 603 982 737 (12,391) (682) 1,600 7,781 (2,476) (621) (777) 419 196 (2,446) (795) (1,826) 2,636 568 98 2 1,117 (180) 87 (153) 120 610 15,322 (840) (1,600) 4,700 (1,403) (19) 130 335 656 94 (582) 1,041 (260) 13,346 (Dollars in millions) Years ended December 31, Cash flows - operating activities: Net (loss)learnings Adjustments to reconcile net earnings to net cash provided by operating activities: Non-cash items - Share-based plans expense Depreciation and amortization Investment/asset impairment charges, net Customer financing valuation adjustments Gain on dispositions, net Other charges and credits, net Changes in assets and liabilities - Accounts receivable Unbilled receivables Advances and progress billings Inventories Other current assets Accounts payable Accrued liabilities Income taxes receivable, payable and deferred Other long-term liabilities Pension and other postretirement plans Customer financing, net Other Net cash (used)/provided by operating activities Cash flows - investing activities: Property, plant and equipment additions Property, plant and equipment reductions Acquisitions, net of cash acquired Proceeds from dispositions Contributions to investments Proceeds from investments Purchase of distribution rights Other Net cash used by investing activities Cash flows - financing activities: New borrowings Debt repayments Contributions from noncontrolling interests Stock options exercised Employee taxes on certain share-based payment arrangements Common shares repurchased Dividends paid Other Net cash provided/(used) by financing activities Effect of exchange rate changes on cash and cash equivalents Net increasel(decrease) in cash & cash equivalents, including restricted Cash & cash equivalents, including restricted, at beginning of year Cash & cash equivalents, including restricted, at end of year Less restricted cash & cash equivalents, included in Investments Cash and cash equivalents at end of year (1,722) 120 (3,230) (1,739) 92 (324) (1,834) 334 (455) 464 (1,658) 1,759 (127) (13) (1,530) (2,607) 2,898 (69) (3,569) 3,607 (131) 6 (2,058) (11) (4,621) 2,077 (953) 8,548 (7,183) 35 81 (257) (9,000) (3,946) 311 (132) (9,236) (3,417) 25,389 (12,171) 7 58 (248) (2,651) (4,630) (15) 5,739 (5) 1,758 7,813 9,571 86 $9,485 (11,722) (53) (1,074) 8,887 7,813 176 $7,637 (11,350) 80 18 8,869 8,887 74 $8.813 See Notes to the Consolidated Financial Statements on pages 56 117. 54 The Boeing Company and Subsidiaries Consolidated Statements of Financial Position 2019 2018 $9,485 545 3,266 9,043 162 76,622 3,106 102,229 2,136 12,502 8,060 3,338 683 1,092 3,585 $133,625 $7,637 927 3,879 10,025 460 62,567 2,335 87,830 2,418 12,645 7,840 3,429 284 1,087 1,826 $117,359 (Dollars in millions, except per share data) December 31, Assets Cash and cash equivalents Short-term and other investments Accounts receivable, net Unbilled receivables, net Current portion of customer financing, net Inventories Other current assets Total current assets Customer financing, net Property, plant and equipment, net Goodwill Acquired intangible assets, net Deferred income taxes Investments Other assets, net of accumulated amortization of $580 and $503 Total assets Liabilities and equity Accounts payable Accrued liabilities Advances and progress billings Short-term debt and current portion of long-term debt Total current liabilities Deferred income taxes Accrued retiree health care Accrued pension plan liability, net Other long-term liabilities Long-term debt Shareholders' equity: Common stock, par value $5.00 - 1,200,000,000 shares authorized; 1,012,261,159 shares issued Additional paid-in capital Treasury stock, at cost Retained earnings Accumulated other comprehensive loss Total shareholders' equity Noncontrolling interests Total equity Total liabilities and equity $15,553 22,868 51,551 7,340 97,312 413 4,540 16,276 3,422 19,962 $12,916 14,808 50,676 3,190 81,590 1,736 4,584 15,323 3,059 10,657 5,061 6,745 (54,914) 50,644 (16,153) (8,617) 317 (8,300) $133,625 5,061 6,768 (52,348) 55,941 (15,083) 339 71 410 $117,359 See Notes to the Consolidated Financial Statements on pages 56 117. The Boeing Company and Subsidiaries Consolidated Statements of Operations (Dollars in millions, except per share data) Years ended December 31, Sales of products Sales of services Total revenues 2019 $66,094 10,465 76,559 2018 $90,229 10,898 101,127 2017 $83,740 10,265 94,005 Cost of products Cost of services Boeing Capital interest expense Total costs and expenses (72,922) (8,499) (69) (81,490) 19,637 111 (Loss)/income from operating investments, net General and administrative expense Research and development expense, net Gain on dispositions, net (Loss)learnings from operations Other income, net Interest and debt expense (Loss)learnings before income taxes Income tax benefit/(expense) Net (loss) learnings (62,877) (9,154) (62) (72,093) 4,466 (4) (3,909) (3,219) 691 (1,975) 438 (722) (2,259) 1,623 ($636) (4,567) (3,269) 75 11,987 92 (475) 11,604 (1,144) $10,460 (68,879) (7,663) (70) (76,612) 17,393 204 (4,095) (3,179) 21 10,344 123 (360) 10,107 (1,649) $8,458 Basic (loss)learnings per share ($1.12) $18.05 $14.03 Diluted (loss)learnings per share ($1.12) $17.85 $13.85 See Notes to the Consolidated Financial Statements on pages 56 - 117