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    S&S Air, Inc. Case No.1: Performance Analysis

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    qo'taq
    This document provides a case study on the financial performance of S&S Air, Inc., a small aircraft manufacturing company. Students are asked to calculate various financial ratios for S&S Air based on the financial statements provided and compare them to industry averages to evaluate the company's performance. They are also asked to discuss whether larger aircraft manufacturers like Boeing would make appropriate aspirational competitors for S&S Air and to compare S&S Air's ratios to the industry in terms of positive or negative performance.

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    S&S Air, Inc. Case No.1: Performance Analysis

    Uploaded by

    qo'taq
    48 views4 pages
    This document provides a case study on the financial performance of S&S Air, Inc., a small aircraft manufacturing company. Students are asked to calculate various financial ratios for S&S Air based on the financial statements provided and compare them to industry averages to evaluate the company's performance. They are also asked to discuss whether larger aircraft manufacturers like Boeing would make appropriate aspirational competitors for S&S Air and to compare S&S Air's ratios to the industry in terms of positive or negative performance.

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    This document provides a case study on the financial performance of S&S Air, Inc., a small aircraft manufacturing company. Students are asked to calculate various financial ratios for S&S Air based on the financial statements provided and compare them to industry averages to evaluate the company's performance. They are also asked to discuss whether larger aircraft manufacturers like Boeing would make appropriate aspirational competitors for S&S Air and to compare S&S Air's ratios to the industry in terms of positive or negative performance.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    48 views4 pages

    S&S Air, Inc. Case No.1: Performance Analysis

    Uploaded by

    qo'taq
    This document provides a case study on the financial performance of S&S Air, Inc., a small aircraft manufacturing company. Students are asked to calculate various financial ratios for S&S Air based on the financial statements provided and compare them to industry averages to evaluate the company's performance. They are also asked to discuss whether larger aircraft manufacturers like Boeing would make appropriate aspirational competitors for S&S Air and to compare S&S Air's ratios to the industry in terms of positive or negative performance.

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    INHA UNIVERSITY IN TASHKENT FINANCIAL MANAGEMENT (TSM3310)

    S&S AIR, INC.

    CASE NO.1
    Performance Analysis

    INSTRUCTIONS (IMPORTANT)

    1. Carefully read the case.


    2. Answer all questions in the QUESTIONS section.
    3. Use ONLY one of the following fonts and font size in your report:
    Arial, 10 size (single spacing)
    Times New Roman 11 size (single spacing)
    4. Strictly follow a minimum word limit (if given) when answering questions.
    5. Strictly avoid plagiarism. Individual critical thinking is required. If plagiarism is identified, all
    group members will receive F (fail) for this assignment.
    6. Print out and use the TITLE PAGE provided at the end of this document as a title page of report.

    Expected length of report: minimum 4-5 pages

    OVERVIEW

    You have been recently hired by S&S Air, Inc., to assist the company with its financial planning and to
    evaluate the companys performance.

    S&S Air was founded 10 years ago by friends Mark Sexton and Todd Story. The company has
    manufactured and sold light airplanes over this period, and the companys products have received high
    reviews for safety and reliability. The company has a niche market in that it sells primarily to individuals who
    own and fly their own airplanes. The company has two models; the Birdie, which sells for $53,000, and the
    Eagle, which sells for $78,000.

    Although the company manufactures aircraft, its operations are different from commercial aircraft
    companies. S&S Air builds aircraft to order. By using prefabricated parts, the company can complete the
    manufacture of an airplane in only five weeks. The company also receives a deposit on each order, as well
    as another partial payment before the order is complete. In contrast, a commercial airplane may take one
    and one-half to two years to manufacture once the order is placed.

    Mark and Todd have provided the following financial statements. Chris has gathered the industry ratios for
    the light airplane manufacturing industry.

    1 Group
    INHA UNIVERSITY IN TASHKENT FINANCIAL MANAGEMENT (TSM3310)

    2 Group
    INHA UNIVERSITY IN TASHKENT FINANCIAL MANAGEMENT (TSM3310)

    Questions

    1. Using the financial statements provided for S&S Air, calculate each of the ratios listed in
    the table for the light aircraft industry.

    2. Mark and Todd agree that a ratio analysis can provide a measure of the companys
    performance. They have chosen Boeing as an aspirant company. Would you choose
    Boeing as an aspirant company? Why or why not? There are other aircraft manufacturers
    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 (minimum 500 words).

    3. Compare the performance of S&S Air to the industry. For each ratio, comment on why it
    might be viewed as positive or negative relative to the industry. Suppose you create an
    inventory ratio calculated as inventory divided by current liabilities. How do you think S&S
    Airs ratio would compare to the industry average? (minimum 500 words)

    3 Group
    INHA UNIVERSITY IN TASHKENT FINANCIAL MANAGEMENT (TSM3310)

    TITLE PAGE

    INHA UNIVERSITY IN TASHKENT FINANCIAL MANAGEMENT TSM3310

    Group Assignment

    CASE NO.1

    S&S Air, INC.


    Performance Analysis

    Group members:

    1. Name______________________________________ ID ______________________

    2. Name______________________________________ ID ______________________

    3. Name______________________________________ ID ______________________

    4. Name______________________________________ ID ______________________

    5. Name______________________________________ ID ______________________

    6. Name______________________________________ ID ______________________

    7. Name______________________________________ ID ______________________

    4 Group

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