operating margin or operating profit margin) increased 2.7 percentage points in 2006 from 2005, moving from 39 percent to 6.6 percent. This ratio is useful in determining the earnings before taxes (EBIT) on each dollar. The stronger the ratio, the better, and when cou pled with growth year over year, this ratio equates to a favorable analysis. Net margin also increased from 2005 (33%) to 2006 (5.6%) for a net change of 2.3 percentage points, indicating that Boeing is doing a better job at controlling its costs and converting its revenue dollars into profit (see Exhibits 2. 3, and 4). Cash flow grew to be 12 percent of revenues, up $.5 billion from $7 billion in 2005 (see Exhibit 7)