Financial Statements Analysis


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Financial Statements Analysis


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Discussion: Investments

Financial Statements Analysis

Directions

Using the Annual Report of your selected company (Boeing) answer the following questions in the Discussion:

  1. What depreciation method does Boeing use for reporting in its financial statements? Why do you think they chose this method?
  2. What was the amount of depreciation and amortization for the year end?
  3. Compute the asset turnover ratio for the year end.
  4. How does this ratio compare to the Aerospace industry ratio? What does this tell you about the Boeing company?
  5. What classifications of debt and/or equity security investments does the Boeing company hold?
  6. How are the Boeing Company’s available-for-sale investments reported? How are the Boeing company’s trading investments reported?

You may use a service such as Yahoo Finance to help research industry averages. The notes to the financial statements will also be of use in answering the discussion questions. For many of the ratios in the discussion, you will need 2-3 years’ worth of financial data.