FINANCIAL STATEMENT AND RATIO ANALYSIS TABLES The Boeing

FINANCIAL STATEMENT AND RATIO ANALYSIS TABLES

The Boeing Company Consolidated Financial Balance Sheet TABLE T-1

The Boeing Company Consolidated Income Statement TABLE T-2

The Boeing Company Divisional Summary TABLE T-3

The Boeing Company Consolidated Financial Ratio Analysis TABLE T-4

Lockheed Martin Consolidated Financial Balance Sheet TABLE T-5

Lockheed Martin Consolidated Income Statement TABLE T-6

Lockheed Martin Divisional Summary TABLE T-7

Lockheed Martin Consolidated Financial Ratio Analysis TABLE T-8

Financial Comparisons Figures

FIGURE F-1 The Boeing Company Divisional Total Assets Trend Analysis Note: Information, Space and Defense was divided into (1) Military Aircraft and Missiles and (2) Space and Communications divisions in 1998

FIGURE F-2 The Boeing Company Divisional Sales/Revenue Trend Analysis Note: Information, Space and Defense was divided into (1) Military Aircraft and Missiles and (2) Space and Communications divisions in 1998

The Boeing Company Net Earnings Divisional Trend Analysis FIGURE F-3

The Boeing Company Net Capital Expenditures Divisional Trend Analysis FIGURE F-4

FIGURE F-5 The Boeing Company Divisional Total Liabilities Trend Analysis Note: Information, Space and Defense was divided into (1) Military Aircraft and Missiles and (2) Space and Communications divsions in 1998

The Boeing Company Research and Development Divisional Trend Analysis FIGURE F-6 Note: Information, Space and Defense was divided into (1) Military Aircraft and Missiles and (2) Space and Communications divisions in 1998

FIGURE F-7 The Boeing Company Liquidity Ratio Trend Analysis

The Boeing Company Asset Management Ratio Trend Analysis FIGURE F-8

FIGURE F-9 Lockheed Martin Divisional Total Assets Trend Analysis Electronics division is the major Total Assets contributor

Lockheed Martin Divisional Sales Trend Analysis FIGURE F-10 • Space & Missiles and Electronics Divisions equally contributing to Sales

Lockheed Martin Net Earnings Divisional Trend Analysis • Space & Missiles leading contributor to Net Earnings FIGURE F-11

Lockheed Martin Net Capital Expenditures Divisional Trend Analysis FIGURE F-12 • Space & Missiles is leading contributor to Net Capital Expenditures

Lockheed Martin Liquidity Ratio Trend Analysis FIGURE F-13

Lockheed Martin Asset Management Ratio Trend Analysis FIGURE F-14

Consolidated Total Assets Financial Comparison FIGURE F-15 • Boeing’s total Assets are 1. 30 times greater than LM • Boeing’s assets are decreasing while LM are remaining roughly the same

Consolidated Sales Financial Comparison • Boeing sales are increasing while LM remain basically flat • Boeing sales are 1. 69 x greater than LM over the last three years • Commercial aircraft division account for 63% of Total Sales FIGURE F-16

Consolidated Net Earnings Financial Comparison FIGURE F-17 • LM operations more efficient than Boeing over this three year period • Earnings are comparable to Boeing and yet Boeing has much more sales • LM earnings are decreasing

Consolidated Earnings From Operations FIGURE F-18 Financial Comparison • LM cost of operations much lower than Boeings respect to Sales • LM earnings remain consistent with flat sales receipts • Boeing needs much improvement in its cost of operations

Consolidated Earnings per Share Financial Comparison • LM has generally higher earnings per share than Boeing • More efficient cost of operations • Effectively utilizing assets and inventories • Boeing has much room for improvement FIGURE F-19

Consolidate Return on Assets(ROA) Profitability Financial Comparison • Shows that LM much more efficient at operations than Boeing FIGURE F-20

Consolidated Return on Equity (ROE) Profitability Financial Comparison • Shows that LM much more efficient at operations than Boeing FIGURE F-21

Consolidated Profit Margin Profitability Financial Comparison FIGURE F-22 • LM Profit Margins are decreasing even though Sales have remained the same • Shows LM has a more efficient operations than Boeing

Consolidated Inventories Financial Comparison FIGURE F-23 • LM inventories are increasing while Boeing’s inventory is decreasing • LM inventory to Total Assets ratio is 50% less than Boeing’s • Shows that LM operations are more efficient than Boeing’s

Consolidated Current Ratio Liquidity Financial Comparison FIGURE F-24 • Ability to meet short term obligations • Ratio is much lower than industry average • Shows the 1998 Liquidity position relatively weak • Must liquidate current assets at 97% (1/1. 03) for LM and at 61% (1/1. 22) for Boeing of book value and still payoff creditors in full

Consolidated Quick Ratio Liquidity Financial Comparison FIGURE F-25 • Ratio is decreasing compared to the industry average • Both companies would have to liquidate its inventory in order to payoff its current liabilities • Inventories are the least liquid of current assets

Consolidated Inventory Turnover Ratio FIGURE F-26 Asset Management Ratio Financial Comparison • Inventory sold out and restocked higher than the industry average • LM ratio is higher than Boeing • Shows possibly superior merchandising and/or a shortage of needed inventory to support sales for both companies

FIGURE F-27 Consolidated Fixed Asset Ratio Asset Management Ratio Financial Comparison • Shows that LM is effectively using its plant and equipment compared to the industry average and to Boeing • Boeing requires improvement to better utilize its plant and equipment

FIGURE F-28 Consolidated Total Asset Ratio Asset Management Ratio Financial Comparison • Evaluates Total Asset usage • LM is generating less sales than total asset investment • Boeing is generating more sales than total asset investment

Consolidated Day Sales Outstanding Ratio. FIGURE F-29 Asset Management Ratio Financial Comparison • Represents the average length of time after making a sale before receiving a cash payment • Boeing is approximately 2. 5 times better than industry average • LM is exceeding the industry average on collecting payments

FIGURE F-30 Consolidated Debt Ratio Debt Management Ratio Financial Comparison • Shows how the company is financed • Both companies debt ratios are higher than the industry average • Creditors have supplied approximately 67% of the total financing • May make it costly to borrow additional funds without raising more equity capital

Consolidated Times Interest Earned Ratio. FIGURE F-31 Debt Management Ratio Financial Comparison • Shows the ability to pay interest • Both companies have sufficient funds to meet annual interest costs even if operating incomes declines

Divisional Sales Military Aircraft & Space Financial Comparison FIGURE F-32 • Boeing and LM Military Aircraft and Space Divisions Sales are nearly equal • Note Boeing overall Sales exceed LM by 1. 6 times • Boeing’s Sales are increasing while LM’s are remaining flat

Divisional Net EBIT Military Aircraft & Space Financial Comparison FIGURE F-33 • Military Aircraft & Space did not contribute to the overall 1997 Earnings per share loss

Divisional Total Assets Military Aircraft & Space Financial Comparison FIGURE F-34

Divisional Net Capital Expenditures Military Aircraft & Space Financial Comparison FIGURE F-35