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SAIC and Boeing Financial Comparison

March 24, 2016 | Author: | Posted in finance, mathematics and economics

SAIC and Boeing Financial Comparison

SAIC is the largest employee-owned research and engineering company in the USA . Boeing is the largest Aerospace manufacturer and the second largest defense contractor in the world . Therefore the guideline of the is to find out which company is more successful in operating profitability , risk management and assets utilization /cash flows

Operating Profitability (2005-2006 . It is known that SAIC provided improved technology to support the United States Department of Defense SAIC has many private company clients is officially the 19th largest defense contractor . It is admitted [banner_entry_middle]

that SAIC had to team up with Boeing in to become the leading integrator on Army project with revenue of 4 billion . Revenues for the 2006 fiscal year ended in January , 31 , accounts 7 .8 billion . The revenue increase of 8 compared with previous fiscal year is apparent . The operating income of SAIC is known to be 497 million in 2006 and 488 million in 2005 . SAIC ‘s operating profit was 2 ,812 million and net profit was 2 ,562 million in 2005 (SAIC 2006 ) Concerning Boeing it is necessary to outline that it expects 36 increase in 2006 for aircraft deliveries . It is apparent that Boeing forecasts the boom , though not all its segments are enjoying earnings . Boeing ‘s operating profit increased up to 817 million and profits from delivering weapons system increased on 23 . Nevertheless the profit margin decreased on 49 . Boeing ‘s net profits after taxes are 2 ,572 billion profits from sales are 54 ,845 billion . It is seen that sales as well as net profits after taxes are considerably higher for Boeing , though the net profit margin is higher for SAIC . According to the Return on for have advantages and disadvantages , no apparent leader is presented

Assets Utilization and Cash flows (2005-2006 . The receivables turnover of SAIC is : sales – 7 ,792 billion , receivables – 1 ,517 billion and receivables turnover – 5 .14 (SAIC 2006 ) The receivables turnover of Boeing is : sales – 54 ,845 billion , receivables – 5 ,246 billion and receivables turnover is 10 .45 . It is seen that in this aspect Boeing is better managed as its receivables turnover is two times higher than that of SAIC (Boeing 2006 ) billion , 2006 ) assets – 5 ,655 billion and It is apparent that in assets utilization SAIC is more successful than Boeing and its turnover is significantly higher

The cash flows of SAIC changed for the period of 2005-2006 . SAIC ‘s cash flows from operating activities increased up to 296 million , though compared with 1602 million in 2005 . SAIC is popularized in the market and investors agree to purchase its common and stocks . It is known that the cash outflows increased up to 561 million (SAIC 2006 Boeing also has had a good fiscal year in 2005 . It means that the combined revenue increased by 5 . The cash flow was about 7 .0 billion in 2005 . In the result Boeing was able to repurchase 45 million shares of stock . Nevertheless , SAIC appears to be better… [banner_entry_footer]

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