Boeing & Lockhead Martin Horizontal and Vertical Analysis

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Course Project Final Horizontal & Vertical Analysis Jane Doe Finance 382 1/08/2011 I. General information about the Industry and companies. For my course project I chose to compare Boeing Company (ticker symbol, BA) and its competitor Lockheed Martin Corporation (ticker symbol, LMT) from the Aerospace/Defense Products and Services Industry. “The aerospace and defense industry consists of several component segments: aircraft and aircraft parts manufacturers, weapons and intelligence systems manufacturers, satellite manufacturers and launch vehicle manufacturers” (Aerospace, 2009). This industry requires strong lead times as negotiations are complex, designing of new products is complicated, and technology changes are frequent. Boeing is the world’s largest aerospace company and leading manufacturer of commercial jetliners, as well as defense, space, and security systems. Boeing is a top U.S. exporter and does business in 150 countries. Boeing provides products and services including; commercial and military aircraft, satellites, weapons, electronic and defense systems, and more (Boeing, 2011). Lockheed Martin Corporation does most of its business with the U.S. Department of Defense and U.S. Federal government agencies. Lockheed Martin provides products and services such as; tactical aircraft, airlift, missile and fire control, space launch, commercial and government satellites, and much more (About, 2011). II. Current Events Currently Boeing is carrying almost 8 billion in Goodwill and other intangible assets; to some this seems like a red flag that Boeing may have some financial issues in the near future. The problem with inflating net assets with goodwill is that it is intangible and will go away if the acquisition or merger doesn't create the amount of value that was expected. It is viewed by Hewitt Heiserman writer of a book

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