Accession Number : AD0782314

Title :   An Investigation of Lockheed's Solvency by Use of Financial Ratios.

Descriptive Note : Master's thesis,

Corporate Author : NAVAL POSTGRADUATE SCHOOL MONTEREY CALIF

Personal Author(s) : Bannat,Edward George

Report Date : JUN 1974

Pagination or Media Count : 78

Abstract : The thesis is an application of the methodology in three studies to an analysis of the financially troubled Lockheed Aircraft Corporation. These 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. The difference is particularly obvious when observing the non-liquid asset ratios. Lockheed's solvency in 1971 is studied, 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 1971-1972, as a starting point for future ratio analyses of Lockheed. (Modified author abstract)

Descriptors :   *Organizations, *Finance, *Reviews, *Economics, Mathematical prediction, Failure, Ratios, Correlation techniques, Problem solving, Aircraft industry, Theses

Subject Categories : Economics and Cost Analysis

Distribution Statement : APPROVED FOR PUBLIC RELEASE