Strategic Initiative Paper

Boeing Ratio Analysis al Affiliation Boeing Ratio Analysis in Comparison with the Industry Analysis Boeing is a flight company in the airline industry. When we look at financial planning, the focus is on the management of financial resources of a business, whereas strategic planning focuses on the direction to be taken by the company based on the available resources. In this discussion, I will use the company’s ratios to show the relationship between strategic and financial planning by basically comparing the company’s ratio with the industry ratios as below.
Liquidity Ratios
The company’s current ratio in the year 2013 ranged at around 1.26 (126%), which was an increment from the standard industry current ratio which was around 1.05. The higher current ratio than that of the industry implies that the company was able to improve its current assets, and reduce its current liabilities compared with the history of the industry. The company’s cash ratio remained relatively stable with other ratios recorded by companies in this industry at 0.3 (30%). This shows that the management was in a position to manage its cash assets and liabilities well, maintaining an equivalent ratio with that of the industry (Air investor 2014: A special supplement, 2014).
Profitability Ratios
The company’s operating margin ratio remained relatively stable at 0.08 (8%) compared with that of the industry which was recorded at 0.78 (7.8%). The stable operating margin meant that the company was able to generate enough income from sales that have aided the company’s business. The company’s profit margin ratio was recorded at 0.05 (5%) for the year 2012 and 2013 compared with that of the industry which was a little lower at 0.04 (4%) (2013 world airline report, 2013). This relatively higher profit margin shows that the company was able to gather reliable income from sales.
References
2013 world airline report. (January 01, 2013). Air Transport World, 50, 7.)
Air investor 2014: A special supplement. (January 01, 2014). Airfinance Journal, 2014.)