Nicole Augustus Ghoram
October 3, 2011
Business Analysis Part II
The Ford Motor Company, founded in 1903 by Henry Ford, is one of the largest auto makers in the world. During a time of crisis throughout the auto industry in recent years, Ford emerged as the sole American automaker in a position to survive the steepest sales downturn in decades without a government bailout. That helped the company improve its reputation and win new customers according to Mulally (2011). Even though the company has had rough times, however ford continues to play catch up with other automobile industries, where competitors like Toyota and General Motors have better brand recognition and larger shares. Even though the financial statements between Ford Motors, Toyota Motors Corporation, and General Motors Corporation proves that Ford Motors has increased in revenues due to big profits, good management decisions, technological advantages, and the global impact on the company. Will big profits, good management decisions, advances in technology, and globalization continues to keep Ford Motors as one of the largest auto makers in the world.
Ford Motors may have financial risk than other companies in the Automobile Industry, it still remains the most highly leverage. According to Bloomberg Businessweek (2011), Revenues has declined from 170,572.0 to 128,954 billion from 2007 to 2011. Ford Motors has been able to reduce the percentage of sales due to Cost of Good Sold. Due to the reduce percentage of Cost of Good Sold, it led Ford Motors to a bottom line growth from 2.7 billion to 6.6 billion increase. The Gross Profit increased from 20,431 billion to 20,768 billion. Which results in a Net Income increase of 6,561 billion, and in 2007 the company net income was at a -2,795 billion. The balance sheet indicates that the revenues aren’t being collected in an efficient manner. Accounts Receivables has been among the worst with 46... [continues]
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