The Defense Budget and Defense Industry Finance

Abstract

The defense sector's fundamentals in terms of operating margin and cash flow return on investment (CFROI) are stronger today than at any point in the past two decades due to better cash flow management, operating efficiencies, and record US defense spending. However, the economic and business environment for the defense sector moving forward is likely to be more difficult because of the Federal budget deficit and the government's nondefense spending requirements. Likely changes in spending priorities have the potential to change the industry significantly. Assessing the vulnerability of the defense sector to potential market changes -- both as a whole and within the various segments it comprises -- is of the outmost importance.

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Document Details

Document Type
Technical Report
Publication Date
May 01, 2010
Accession Number
ADA530181

Entities

People

  • David J. Berteau
  • Matthew Zlatnik
  • Roy Levy

Organizations

  • Center for Strategic and International Studies

Tags

Communities of Interest

  • Biomedical
  • Energy and Power Technologies
  • Materials and Manufacturing Processes

DTIC Thesaurus Topics

  • Acquisition
  • Budgets
  • Business Administration
  • Commerce
  • Contracts
  • Defense Industry
  • Department Of Defense
  • Economics
  • Finance
  • Financial Management
  • Government Procurement
  • Governments
  • Investments
  • Logistics
  • Military Budgets
  • Organizational Structure
  • Public Administration

Readers

  • Cybersecurity.
  • Public Financial Management and Budgeting
  • Systems Analysis and Design