BOEING AND AIRBUS

Boeing and Airbus

Table of Contents

Executive Summary2

Introduction2

Profitability Ratios3

Gross Margin3

Net Margin4

Return on Capital employed4

Efficiency Ratios5

Debtor turnover5

Creditor turnover5

Liquidity ratios6

Current Ratio6

Quick Ratio6

Gearing Ratios7

Debt/Equity7

Horizontal Analysis7

Boeing7

Airbus8

Vertical Analysis8

Comparative Analysis9

Conclusion12

Boeing and Airbus

Executive Summary

This research paper deals with the competition analysis between Boeing and Airbus. It is well known fact that these two airplane manufacturer have enjoyed duopoly for a long period of time, and this is way most the times they are compared to each other, as both of them are giants of their industry. In this research paper, we discussed both the companies in detail along with their competition analysis and ratio analysis. The ratio analysis was carried out in detail along with its profitability efficiency, liquidity, gearing ratios. The feature of this analysis also includes the comprehensive details of both horizontal analysis and vertical analysis.

Introduction

Over the next 20 years, the market of civil aviation will represent a turnover of over $ 3000 billion (billion) to about 28,600 aircraft. The cumulative backlog of Airbus and Boeing is well over $ 550 billion in early 2009.In this context, we can suspect that the situation in which strong competitiveness are the two manufacturers is further enhanced by their duopoly: there are only two major manufacturers in the world. So we can say that there is a war on three commercial marketing but also in diplomacy, this is where commercial competition could turn into an international dispute of a legal nature. 

The two giant aircraft, the Airbus and Boeing, are in a real battle in height. The competition between these two giants of the air is enormous, both in volume sales of appliances and in the struggle for political subsidies and grants. With the launch of his new star aircraft, the giant A380 , the European company Airbus has just made ??public its financial results for 2004. For the second consecutive year, the aircraft manufacturer exceeds its U.S. rival Boeing in aircraft deliveries, with 320 units versus the 285 of the latter. According to these data, Airbus stands as a leader in the civil aviation industry, says its president and CEO, Noel Forgeard.

The fact of the matter is that it is at times very hard to choose or single out the best one between both of them, but still there is a lot that can be analyzed and compared. In this research paper we will be doing that.

Profitability Ratios

Cover all the ratios that compare the earnings of a period with certain items of Income Statement and Balance Sheet. The results of these ratios indicate the profitable management of the company, where managers have used the resources of the company, to yield maximum profits or gains.

Gross Margin

The gross margin - is the gross profit divided by sales, which shows how much of total sales revenue remains after deducting cost of goods sold. If we look at the gross margin ratio for Airbus, it has increased from 10.37 to 13.6 in the span of one year from 2009 to 2010. Last year, it further increased from ...