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S&S Air. Presented by Kaneisha Hamilton. S&S Air Background. Was founded 10 years ago by Mark Sexton and Todd Story. Manufactures and sells light planes. The company has two major model planes The Birdie $53,000 The Eagle $78,000 Builds planes to order ( about 5 weeks ).
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S&S Air Presented by KaneishaHamilton
S&S Air Background • Was founded 10 years ago by Mark Sexton and Todd Story. • Manufactures and sells light planes. • The company has two major model planes • The Birdie $53,000 • The Eagle $78,000 • Builds planes to order ( about 5 weeks )
New Ratio (Inventory) • Mark and Todd created a ratio for inventory. • Inventory / Current Liabilities • 566,400 / 1,803,600 = .314 • It would be less than the median in the industry • This all implies that S&S Air has less inventory than the median of the industry, but more accounts receivable. • Lacks relevance
Boeing Co. Aspirant? • Produce commercial planes (747 and 787 Dreamliner) • Involved with producing products for the Department of Defense and Space Programs. • Mark and Todd cannot use Boeing as an aspirant company in its ratio analysis • Size difference between the companies is great. • Boeing offers more than just the basic commercial aircraft
S&S Air Growth • The Internal Growth Rate of S&S Air • .0917 or 9.17% • This is how much the company can grow without outside financing of any kind. • Sustainable Growth Rate • .1919 or 19.19% • This means that the company can grow 19%, until it has to borrow more money.