Boeing

Mark and Todd agree that a ration analysis can provide a measure of the ocmpany's perfomrance. They have chosen Boeing as an aspirant company.

Would you choose Boeing as an aspirant company? Why or why not? There are other manufactors S&S Air could use as aspirant companies. Discuss whether

it is appropriate to use any of the following companies: Bombardier, Embraer, Cirrus Design Corporation, and Cessna Aircraft Company

I would not choose Beoing to be an aspirant company because there are vast differences between the two companes.

The text informs us that it is easier to evaluate a firm when the companies have comparables. In this case, Beoing is a larger operation than S&S

and they manufactor other items, therefore, obtaining data would be difficult. Of the companies that are listed, Cirrus Design is the only one that does

not manufacture both commercial and business, they are more comparable to S&S and could be used as an aspirant company

Current Ratio: Negative. The number is low in comparison to the median of 1.43. The higher the number the better

Quick Ratio: Positive. It shows that the inventory is less than half

Cash Ratio: Negative: The median is .21 and the company's is .15. The number should be higher in order to reflect

Total Asset Turnover: Postive: The company was able to generate income at a higher rate than the median of .85

Inventory Turnover: Positive: The number shows that they are turning over their inventory

Receivable Turnover: Positive: It shows that the company collected on its accounts and reloaned the money at least 54 times

Total Debt Ratio: Positive: The company is in debt $.23 for every $1

Debt-Equity Ratio: Negative. It is on the lower end.