Financial management: Boeing company

Financial management: Boeing company

Boeing is the largest aerospace organization in the world. It leads in the world in orders

and deliveries as well as revenues. It is also the world’s largest defense contractor. The company

is based in the U.S. and is mainly involved in the design, manufacture and sale of aircrafts,

rockets, rotorcrafts and satellites. Moreover, the company provides product support and leasing

services. The major divisions of Boeing Company include commercial airplanes, space and

security, defense, engineering, operations and technology, shared services and the Boeing

Capital Corporation. This paper explores Boeing’s financial management and its performance in

the last five years. Boeing’s future prospects are also explored.

Financial Management of Boeing Company

The continued growth in Boeing’s revenues is a result of sound financial management.

Financial management at Boeing includes effective working capital management. This involves

minimizing the short term and long term liabilities and ensuring appropriate levels of inventories.

It also involves keeping up with outstanding accounts receivables’ collections (Boeing 1). The

company also makes appropriate investment decisions with the assets. Boeing also manages its

cash flow effectively. The company also effectively manages cash on hand which is used to pay

suppliers, employees, taxes and dividends (Boeing 39). The company’s financial standing is

strong and this is important to investors and customers. Effective financial management in the

company also involves being able to set an accurate budget. Boeing has numerous divisions

including Aviation, Space, Defense and network and it has been able to set appropriate operating

budgets for each and make proper investment decisions.

Initially, Boeing Company measured its financial success by considering the economic

profit. However, the company adopted a balanced financial management approach which

involves the consideration of four performance metrics. These metrics are referred to as

enterprise financial targets and they provide financial goals meant to encourage Boeing’s

workforce to increase and maintain value.


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