Accession Number:

ADA193045

Title:

Financial Strength as a Predictor of Pricing Strategy

Descriptive Note:

Master's thesis

Corporate Author:

NAVAL POSTGRADUATE SCHOOL MONTEREY CA

Personal Author(s):

• Webb, Paul B.

Report Date:

1987-12-01

Pagination or Media Count:

69.0

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.

Descriptors:

• *FINANCIAL MANAGEMENT
• *CONTRACTORS
• MATHEMATICAL MODELS
• GUIDED MISSILES
• RATIOS
• DEPARTMENT OF DEFENSE
• CORPORATIONS
• COST ANALYSIS
• THESES
• VARIABLES
• COSTS
• MATHEMATICAL PREDICTION
• LINEAR REGRESSION ANALYSIS
• AEROSPACE INDUSTRY
• FINANCE

Subject Categories:

• Economics and Cost Analysis

Distribution Statement:

APPROVED FOR PUBLIC RELEASE