An analysis of the profitability of major defense aerospace contractors
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Authors
Britt, David Francis
Subjects
Profitability
Capacity Utilization
Risk
Defense Aerospace
Capacity Utilization
Risk
Defense Aerospace
Advisors
Greer, W.R.
Date of Issue
1983-09
Date
Publisher
Monterey, CA; Naval Postgraduate School
Language
Abstract
This study is a comparative analysis between the profitability of defense and commercial aerospace business. Corporate data including profit measures and the volume of defense business were collected for a 22 year period from 1961 to 1982. The methodology uses regression analysis with the percentage of defense business and the percentage of capacity utilization within the aerospace industry as the explanatory variables for profit. Finally, a brief analysis of risk is included to provide a framework within which to compare these profit levels. Briefly the findings indicate; that defense contracting has, on the average, been less profitable than commercial; that contractors earn more on defense contracts during periods of increased capacity utilization, and that defense contracting involves higher risk. The author concludes that government acquisition managers must be continuously aware of the implications of these findings for individual contractors as well as for the entire defense industrial base.
Type
Thesis
Description
Series/Report No
Department
Management
Organization
Identifiers
NPS Report Number
Sponsors
Funder
Format
Citation
Distribution Statement
Approved for public release; distribution is unlimited.