Financial Strength as a Predictor of Pricing Strategy

Abstract

The purpose of this thesis is to determine if the pricing strategy used by defense aerospace contractors can be explained using information readily available from the financial statements of the corporation and from compilations of industry financial data. The sample includes seventeen defense contractors within the aerospace industry and fifty-two aircraft and missile programs. Twenty-one financial ratios were developed from corporate financial data and compared with the industry average for the same ratio. The resulting values were correlated with the slope of the price reduction curve for the programs. A seven variable linear regression model was developed which is significant in explaining pricing strategy.

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Document Details

Document Type
Technical Report
Publication Date
Dec 01, 1987
Accession Number
ADA193045

Entities

People

  • Paul B. Webb

Organizations

  • Naval Postgraduate School

Tags

Communities of Interest

  • Space
  • Weapons Technologies

DTIC Thesaurus Topics

  • Accounting
  • Acquisition
  • Aerospace Industry
  • Aircrafts
  • Commerce
  • Contractors
  • Contracts
  • Corporations
  • Correlation Analysis
  • Data Analysis
  • Databases
  • Department Of Defense
  • Factor Analysis
  • Information Science
  • Inventory
  • Military Aircraft
  • Regression Analysis

Readers

  • Economics
  • Regression Analysis.
  • Systems Analysis and Design

Technology Areas

  • Space