Financial Analysis and Ratios

p Boeings 2 ,572 ,000 ,000 54 ,845 ,000 ,000 4 .69

Return on Net Profit after Taxes SAIC 927 ,000 ,000 5 ,655 ,000 ,000 16 .39

Boeings 2 ,572 ,000 ,000 60 ,058 ,000 ,000 4 .28 2 .2 Asset Utilization

Asset Utilization is a process that divides a portfolio among major asset categories such as bonds , stocks or cash . The purpose of this process is to decrease risk by diversifying the portfolio . In addition asset utilization ratios are also useful in tracing corporate sales

Two kinds of

indicators in the assets utilization that we use in analyzing the two companies the indicators are And Table 2 Asset Utilization

Receivables Turnover

Sales Receivables Receivables Turnover

SAIC 7 ,792 ,000 ,000 1 ,517 ,000 ,000 5 .14

Boeings 54 ,845 ,000 ,000 5 ,246 ,000 ,000 10 .45 Sales SAIC 7 ,792 ,000 ,000 5 ,655 ,000 ,000 1 .38

Boeings 54 ,845 ,000 ,000 60 ,058 ,000 ,000 0 .91 2 .3 Risk Management

In the absence of debt , a `100 equity ' company depends entirely on economic and business climate to produce corporate growth . Perhaps the most appropriate ratio to describe business risk is the Return on Equity . The core of business risk lies on the uncertainty of ROE projections in which a high ROE means a low business risk and a low ROE implies a high business risk . ROE can be calculated by using following equations :Table 3 Risk Management of SAIC and Boeings

Risk Management

Net Income Shareholders ' Equity ROE

SAIC 927 ,000 ,000 2 ,807 ,000 ,000 33 .02

Boeings 2 ,572 ,000 ,000 11 ,059 ,000 ,000 23 .26 The above tables shows that SAIC can generate more revenue with the money HYPERLINK "http /www .investopedia .com /terms /r /returquity .asp " \l " \t "_blank " shareholders...