Financial Analysis of BAE systems plc Essay Example | Topics and Well Written Essays - 2750 words

Financial Analysis of BAE systems plc - Essay Example The principle operations of the company are electronic system, cyber & intelligence and platforms & services (UK and US and international). The electronic systems of the company includes, electronically optical sensors, commercial and digital engine and flight controls, electronic warfare systems, persistent surveillance capabilities, next-generation military communications systems and data links and hybrid electric drive systems. Cyber & intelligence includes, US based security and intelligence business and the BAE  System’s Detica business. It covers the cyber, financial security and commercial activities based in the UK. From the above figure, it is evident that the sales of the company have decreased over the years from 2008 to 2012. The revenue has reduced by 7% reflecting lower volume of sales in Land & Armaments business and there was no contract for Typhoon aircraft delivery during 2012 under the surveillance of Salam Typhoon program (BAE Systems, 2014b). The Earning Before Interest, Tax and Amortization (EBITA) has also reduced by 6% to approximately  £1,895 million (BAE Systems, 2014b). The earnings per share (EPS) went down by 2% (which excludes the benefit of UK tax settlement in 2011). The order backlog has also increased by about 8% to  £42.4 billion. The order taking in non-US and UK have increased to  £11.2 billion from  £4.8 billion in 2011. The total dividend paid to the investors has also increased by 4% in 2012 to about 19.5 p (BAE Systems, 2014b). According to Dick Olver, Chairman of BAE Systems Plc, â€Å"BAE Systems has delivered a robust performance in a challenging environment† (BAE Systems, 2014b). The company concentrates on the way it has conducted its business over the years and also focuses on the operational and strategic progress. The mission statement of the company is to â€Å"deliver sustainable growth in shareholder value by committing Total Performance† (BAE Systems,