Essay on Ford Motor Company Analysis - 1652 Words

Unit 5 Final Project: Ford Motor Company Executive Summary Ford Motor Company is an American automobile manufacturer founded and headquartered in Dearborn, Michigan but incorporated in the state of Delaware. The company was started by Henry Ford in 1903 and is historically famous for the creation and implementation of the assembly line in manufacturing processes. Ford’s mission is to produce and sell automobiles – cars, trucks, SUVs, etc – from the ones initially designed and engineered by Henry Ford all the way through the newer versions created in the last few years. (Profitable Growth for All, 2012) In 2011, the company performed strongly – producing revenues of $134,264,000,000 and net income of $20,213,000,000. Financial data†¦show more content†¦The financial statements included tend to combine cash and marketable securities into a category labeled â€Å"cash and cash equivalents†. If the cash ratio is recalculated using this value instead of simply cash than the ratio impro ves to 1.10, which shows much stronger liquidity capabilities. Long-term solvency for Ford Motor Company also appears to be strong. The company’s times interest earned ratio of 1.96 means that it can cover its interest charges on current debt issues almost two times over. This is a good sign that bankruptcy is not eminent and the company is solvent in the long-run. A higher debt to equity ratio means a company gets a larger portion of its financing from creditors than shareholders, though higher is a subjective measure and depends on the industry. (Wahlen et al, 2008) Automotive manufacturers tend to have debt to equity ratios above 2 because the industry is capital intensive. (Debt/equity ratio, 2014) Ford’s debt to equity ratio in 2011 was 10.89, far higher than the industry standard, potentially due to the circumstances of the time. The financial crisis of 2008 resulted in major financial bailouts across the automotive industry. These large levels of debt to the gov ernment would increase the debt to equity ratios of all companies that accepted the money. In addition to both short and long term solvency, a company’s return on invested capital should be analyzed when determining its financial health. Ford’sShow MoreRelatedCompany Analysis : Ford Motor Company1299 Words   |  6 Pagesresearch to several companies using information provided by independent firms. The analysis will explain the details of financial information, as well as make recommendations on their values as investments (Lasher, 2014). Although there are thousands of publicly traded companies, one will only research the following four companies: Ford Motor Company (Ford), Harley-Davidson, Inc. (Harley), Starbucks Corporation (Starbucks), and Microsoft Corporation (Microsoft). Incorporated in 1919, Ford is a global automobileRead MoreCompany Analysis : General Motors And Ford Motor Company Essay1184 Words   |  5 PagesCorporation Analysis: General Motors and Ford Motor Company are one of the top two companies in the motor industry every year. But with every great company it will have it’s ups and downs and with the ratios we have for both companies it will be easier to explain the performance of both companies in depth. The price ratio helps us better understand the future outlook of a company’s stock. And with the Beta it helps us measure the risk of the stock in the company. With both companies there PE ratioRead MoreSwot Analysis Of Ford Motor Company1049 Words   |  5 PagesSWOT Analysis is a tactical method used to verify any company’s or any firm’s strengths, weaknesses, opportunities and threats. A company should use SWOT analysis to assess and make precise decisions in regards to the company’s growth and success and future development. The company’s Strengths are the internal characteristics that help it to run successfully and have an advantage over their competitio n and accelerate the company in reaching its goals and objectives. The weaknesses of the company areRead MoreFord Motor Company Case Analysis1230 Words   |  5 Pages Company Summary: The Ford Motor Company is one of the most largest and profitable U.S. automakers in the world. Today the company headquarters operates in the Motor City, located in Dearborn, Michigan. The Ford Corporation was found by Henry Ford back in 1903, after a disagreement with his financial investors. He then decided to pursue his passion for owning his own business. The Ford Company designs and manufactures durable automobiles, automotive components, and systems. This corporation isRead MoreAnalysis of Ford Motor Company Essay1056 Words   |  5 PagesAnalysis of Ford Motor Company External Factors and Economic Environment 1) Market and Customers Between 22% and 23% (average over past five years) of Ford’s customers are defined as fleet customers as described above. The residual 77%to 78% of customers are private individuals who purchase Ford vehicles through licensed dealers. Ford customers come from all demographic strata given the diverse brand lineup and product mix, and Ford’s products are purchased and driven the world over. ArgusRead MoreFord Motor Company Swot Analysis Essay1549 Words   |  7 PagesFord Motor Company SWOT Analysis Introduction Ford Motors is an American based company that was founded over a century ago back in 1903. Ford Motors is one of the most leading automobile manufacturers in the world and according to Forbes the company was the seventh largest car manufacturer in 2014. 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I will further cover a financial analysis of Ford Motor Company, evaluate the businesses consolidated statements of incomeRead MoreBusiness Analysis- Ford Motor Company Essay2411 Words   |  10 PagesBusiness Analysis Part III Nancy Holly MGT/521 Management January 27, 2012 Jim O’Keeffe, Facilitator Abstract A financial analysis of Ford Motor Company’s (Ford) statements will identify their solvency in today’s automobile market. Elements such as liquidity, leverage, profitability, and activity ratios will demonstrate Ford’s financial health and stability. A further assessment of their technological advantages, global strategies, and benchmarking analysis will indicate the futureRead MoreSWOT Analysis: Ford Motor Company Essay1486 Words   |  6 Pagesto invest in Ford Motor Company will take the use of a SWOT analysis and learning about the stakeholders of the company. Business Analysis Part 1: Ford Motor Company There are a lot of factors to think about as a mutual fund manager when deciding whether to invest in a company. When it comes to investing in Ford Motor Company, I will have to make a decision on whether the investment strategy and the associated risks will be a good fit for me and my company. Most businessesRead MoreFord Motor Company Written Case Analysis2381 Words   |  10 Pagesbetter linked to create value for the company? 2.2 How can Ford successfully position itself in terms of the five forces of competition? 2.3 In what ways can the company effectively manage customer relationships to increase strategic competitiveness? 2.4 What conditions and tools can facilitate Fords efforts to produce differentiated products at relatively low costs? Outline a rough competitor analysis. What can be learned about expected competitor