Business Analysis of Boeing

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of Boeing

Business Overview

The Boeing Company, together with its subsidiaries, designs, develops, manufactures, sells, services, and supports commercial jetliners, military aircraft, satellites, missile defense, human space flight, and launch systems and services worldwide. It operates in five segments: Commercial Airplanes, Boeing Military Aircraft, Network & Space Systems, Global Services & Support, and Boeing Capital. The Commercial Airplanes segment develops, produces, and markets commercial jet aircraft for various passenger and cargo requirements; and provides related support services to the commercial airline industry. This segment also offers aviation services support, aircraft modifications, spare parts, training, maintenance documents, and technical advice to commercial and government customers. The Boeing Military Aircraft segment researches, develops, produces, and modifies manned and unmanned military aircraft, and weapons systems for global strike, vertical lift, and autonomous systems, as well as mobility, surveillance, and engagement. The Network & Space Systems segment researches, develops, produces, and modifies strategic defense and intelligence systems, satellite systems, and space exploration products. The Global Services & Support segment provides integrated logistics services comprising supply chain management and engineering support; maintenance, modification, and upgrades for aircraft; and training systems and government services that include pilot and maintenance training. The Boeing Capital segment offers financing services and manages financing exposure for a portfolio of equipment under operating and finance leases, notes and other receivables, assets held for sale or re-lease, and investments. The company was founded in 1916 and is headquartered in Chicago, Illinois.

Boeing

Boeing


R&P Rank: 22
Sector: Aerospace and Defense
Industry:Aerospace Products, Parts, Systems and Services
H.Q Location:Washington
Website: www.boeing.com
Company Address:
P O BOX 3707 MS 1F 31, SEATTLE WA 98124
Ph:312-544-2000

Business Analysis of Boeing

The Aerospace and Defense Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Boeing compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Boeing to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of Boeing with an interactive chart.

  1. Revenue Growth: Boeing reported a revenue growth of -1.6% year-on-year during 2016. Aerospace Products, Parts, Systems and Services Industry grew at 0.8% in the same period
  2. COGS share of Revenues: As a percentage of revenue, Boeing spent 85.4% of its total revenues on COGS. Aerospace Products, Parts, Systems and Services industry average (COGS share of revenue) in the same period was 78.4%
  3. R&D share of Revenues: As a percentage of revenue, Boeing spent 4.9% of its total revenues on R&D. Aerospace Products, Parts, Systems and Services industry average R&D spending in the same period was 2.7%
  4. SG&A share of Revenues: As a percentage of revenue, Boeing spent 3.8% of its total revenues on Sales, Marketing, and General Administration (SG&A). Aerospace Products, Parts, Systems and Services industry average SG&A spending in the same period was 8.3%
  5. Inventory share of Revenues: As a percentage of revenue, Boeing spent 45.7% of its total revenues on Inventories. Aerospace Products, Parts, Systems and Services industry average Inventory spending in the same period was 25.0%
  6. Accounts Payable share of Revenues: As a percentage of revenue, Boeing invested 11.8% of its total revenues on Accounts Payable (A/P) Aerospace Products, Parts, Systems and Services industry average Accounts Payable investment in the same period was 10.1%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, Boeing invested 13.8% of its total revenues on Accounts Receivable (A/R). Aerospace Products, Parts, Systems and Services industry average Accounts Receivable investment in the same period was 18.0%
  8. PP&E share of Revenues: As a percentage of revenue, Boeing invested 13.5% of its total revenues on Property, Plants, and Equipments (PP&E). Aerospace Products, Parts, Systems and Services industry average PPE investment in the same period was 15.2%
  9. Intangibles share of Revenues: As a percentage of revenue, Boeing invested 8.3% of its total revenues on Intangibles. Aerospace Products, Parts, Systems and Services industry average Intangibles investment in the same period was 39.7%
  10. Net Margins: Boeing Net Margins in the year 2016 were 5.2%. Aerospace Products, Parts, Systems and Services industry average Net Margins in the same period were 7.2%

Sector and Industry Association of Boeing

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries. For high-level analysis purposes, related/similar sectors are grouped into sector groups.

Boeing is associated with Industrials Sector Group, Aerospace and Defense Sector, and Aerospace Products, Parts, Systems and Services Industry.

Aerospace and Defense sector is comprised of the following industries: Aerospace Products, Parts, Systems and Services; Military and Defense. The definitions for each of the industries is as follows:

  • Aerospace Products, Parts, Systems and Services industry includes manufacturers, assemblers, distributors and service providers of aerospace and aircraft parts primarily used in the commercial or private air transport.
  • Military and Defense industry includes producers of components and equipment for the defense industry, including military aircraft, radar equipment and weapons, drones, space and security systems. Military and Defense companies also offer military shipbuilding, submarines, amphibious assault ships and nuclear services. Arms and weapon companies offering consumer firearms are included in the specialized consumer goods.

Industry Ranking of Boeing

With $94.6 billion revenues, Boeing ranked number 1 of all the companies in the US Aerospace Products, Parts, Systems and Services industry. There were a total of 32 public companies in the US Aerospace Products, Parts, Systems and Services industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Aerospace Products, Parts, Systems and Services industry by revenues during 2016 were:

  1. Boeing ($94.6 billion)
  2. United Technologies ($57.2 billion)
  3. General Dynamics ($31.4 billion)
  4. Northrop Grumman ($24.5 billion)
  5. Raytheon ($24.1 billion)
  6. Textron ($13.8 billion)
  7. Spirit AeroSystems ($6.8 billion)
  8. Rockwell Collins ($5.3 billion)
  9. Triumph Group ($3.9 billion)
  10. TransDigm Group ($3.2 billion)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of Boeingand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of boeing

United Technologies (UTX) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

United Technologies Corp with $57 billion revenues in the year 2016 was the number 2 Aerospace Products, Parts, Systems and Services company. Read this report to know the top competitors of United Technologies and identify growth and cost optimization opportunities of United Technologies

General Dynamics (GD) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

General Dynamics Corp with $31 billion revenues in the year 2016 was the number 3 Aerospace Products, Parts, Systems and Services company. Read this report to know the top competitors of General Dynamics and identify growth and cost optimization opportunities of General Dynamics

Northrop Grumman (NOC) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Northrop Grumman Corp with $25 billion revenues in the year 2016 was the number 4 Aerospace Products, Parts, Systems and Services company. Read this report to know the top competitors of Northrop Grumman and identify growth and cost optimization opportunities of Northrop Grumman

Raytheon (RTN) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Raytheon Co with $24 billion revenues in the year 2016 was the number 5 Aerospace Products, Parts, Systems and Services company. Read this report to know the top competitors of Raytheon and identify growth and cost optimization opportunities of Raytheon

Textron (TXT) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Textron Inc with $14 billion revenues in the year 2016 was the number 6 Aerospace Products, Parts, Systems and Services company. Read this report to know the top competitors of Textron and identify growth and cost optimization opportunities of Textron

Spirit AeroSystems (SPR) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Spirit AeroSystems Holdings, Inc. with $7 billion revenues in the year 2016 was the number 7 Aerospace Products, Parts, Systems and Services company. Read this report to know the top competitors of Spirit AeroSystems and identify growth and cost optimization opportunities of Spirit AeroSystems

Revenues Analysis

Boeing (BA) Revenues And Revenue Growth From 2012 To 2016

This report provides the last five years revenues and revenue growth of Boeing Co (BA) from 2012 to 2016. Boeing generated a total of $94.6 billion revenues during 2016. Boeing reported a revenue growth of -1.6% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Boeing (BA) Revenues And Revenue Growth From 2002 To 2016

This report provides the last fifteen years revenues and revenue growth of Boeing Co (BA) from 2002 to 2016. Boeing generated a total of $94.6 billion revenues during 2016. Boeing reported a revenue growth of -1.6% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Boeing (BA) Revenue Growth Comparison With Industry Growth From 2012 To...

This report provides a comparison of Boeing Co (BA) revenue growth with Aerospace Products, Parts, Systems and Services industry growth during the last five years from 2012 to 2016. Boeing reported a revenue growth of -1.6% year-over-year during 2016. The Aerospace Products, Parts, Systems and Services industry growth was 0.8% year-over-year during 2016. Boeing growth was slower than the industry during 2016.

Profit Analysis