Over the last years, the global defense industry has been experiencing a substantial growth rate. It has gradually become a vital component of the economic structure of the most powerful nations in the world. Gaining a deep understanding of this sector is paramount. This book offers you an up-to-date overview of the industry by guiding you through a strategic analysis first and a financial study of the major players afterwards. A detailed Porter s five forces analysis lays the foundation of the book. It helps identifying the characteristics of each market as well as the key success factors a firm operating in the defense industry has to be strong at. The profitability of the five biggest companies in the US Lockheed Martin, Boeing, Northrop Grumman, General Dynamics, and Raytheon and the five biggest companies in the recently rising European market EADS, BAE Systems, Thales, Finmeccanica and Rolls- Royce has been tested with independent calculations. Financial analysis has been performed to evaluate the debt-to-equity and assess each firm s ability to create wealth, to hold a sustainable competitive position, and to repay its shareholders.