An investigation of Lockheed's solvency by use of financial ratios
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Authors
Bannat, Edward George
Subjects
Advisors
Fremgen, James W.
Date of Issue
1974-06
Date
June 1974
Publisher
Monterey, California. Naval Postgraduate School
Language
en_US
Abstract
This thesis is an application of the methodology in studies by Beaver and one by Dascher to an analysis of the financially troubled Lockheed Aircraft Corporation. There three previous studies used financial ratios in attempting to predict failure. All three studies were performed with firms that had already failed. their results demonstrate that there is a significant difference in financial ratios of failed and non-failed firms. This difference is particularly obvious when observing the non-liquid asset ratios. This thesis attempts to determine Lockheed's solvency in 1971, when it claimed to be facing bankruptcy. The conclusion is that failure in 1971 was, indeed, quite probable. In addition, Lockheed's ratios are analyzed during 197101972, as the firm has stated that it faces a new crisis, though not nearly of the proportion of the 1971 disaster. These last two years will serve as a starting point for future ratio analyses of Lockheed.
Type
Thesis
Description
Series/Report No
Department
Department of Operations Research and Administrative Sciences
Organization
Naval Postgraduate School (U.S.)
Identifiers
NPS Report Number
Sponsors
Funder
Format
Citation
Distribution Statement
Approved for public release; distribution is unlimited.
Rights
This publication is a work of the U.S. Government as defined in Title 17, United States Code, Section 101. Copyright protection is not available for this work in the United States.