Ford Motors
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- Date Submitted: 10/21/2013 09:14 PM
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Business Analysis Part II: Ford Motor Company
Ford Motor Company is on the path of financial recovery. This is verified by studying Ford’s financial statements; those statements are then compared and contrast against other industry competitors. The company’s revenues show a steady increase in the last three years, while still growing its liquidity cash flow during that time same time period. Consequently, these three indicators show Ford’s current financial health which shows a strong financial stability compared to the onset of the 2008 recession.
Ford Motors & Competitors Comparison
Ford’s revenue in 2011 was 136,264 billion dollars with 22.9 billion as profit, however after the subtraction of automotive debt the net profit is reduced to 9.8 billion dollars (Ford Motor Annual Report, 2011). In comparison, General Motor’s revenue was slightly higher for 2011 with 150,276 billion but only reported 9,190 billion in profits after automotive debt is subtracted (GM Annual Report, 2011). Chrysler Group’s revenue for 2011 was 55 billion and profits of 183,000 million (Chrysler Annual Report, 2011). The data shows GM as the top revenue producer in 2011; however Ford clearly produced stronger overall profits when compared to their respective counterparts within the industry. Ford also had the strongest cash flow of the three with 17.148 million; a year prior Ford’s cash was 14.805 million, up 2.35 million from 2010 (Google NYSE:F, 2011).
Companies in Review
After carefully contemplation of Ford’s financial numbers it is plausible to conceive that Ford Motors is on their way up preverbal ladder in the essential categories that define good financial health. Their balance sheet illustrates that sales are rising while operational costs being held under controlled. These operational costs have continued to decrease as Ford Motors strives to restructure their operational cost to increase their profit margins while affording dividends to Ford’s shareholders....
Ford Motor Company is on the path of financial recovery. This is verified by studying Ford’s financial statements; those statements are then compared and contrast against other industry competitors. The company’s revenues show a steady increase in the last three years, while still growing its liquidity cash flow during that time same time period. Consequently, these three indicators show Ford’s current financial health which shows a strong financial stability compared to the onset of the 2008 recession.
Ford Motors & Competitors Comparison
Ford’s revenue in 2011 was 136,264 billion dollars with 22.9 billion as profit, however after the subtraction of automotive debt the net profit is reduced to 9.8 billion dollars (Ford Motor Annual Report, 2011). In comparison, General Motor’s revenue was slightly higher for 2011 with 150,276 billion but only reported 9,190 billion in profits after automotive debt is subtracted (GM Annual Report, 2011). Chrysler Group’s revenue for 2011 was 55 billion and profits of 183,000 million (Chrysler Annual Report, 2011). The data shows GM as the top revenue producer in 2011; however Ford clearly produced stronger overall profits when compared to their respective counterparts within the industry. Ford also had the strongest cash flow of the three with 17.148 million; a year prior Ford’s cash was 14.805 million, up 2.35 million from 2010 (Google NYSE:F, 2011).
Companies in Review
After carefully contemplation of Ford’s financial numbers it is plausible to conceive that Ford Motors is on their way up preverbal ladder in the essential categories that define good financial health. Their balance sheet illustrates that sales are rising while operational costs being held under controlled. These operational costs have continued to decrease as Ford Motors strives to restructure their operational cost to increase their profit margins while affording dividends to Ford’s shareholders....