Introduction
History Ford Motor Company did not start out with its current name nor did it start with its current reputation or leadership standing in the automotive industry. A man named Henry Ford on November 3, 1901 started the Ford Motor Company. In the beginning, the car company went through multiple name changes within a short time period and eventually landed on the all time name of Ford Motor Company. With the help of 11 investors bringing together only $28,000, Ford Motor Company launched in 1903. In the early years, the company was able to produce just a few cars a day in its Detroit Michigan factory. Teams of a few men assembled each car with parts that were contracted from other companies. Within 10 years of start …show more content…
Revenue is shown usually as the top item in an income statement from which all charges, costs, and expenses are subtracted to arrive at net income.
The chart above shows the annual revenues of the entire Ford Motor Company from 2000 to 2011. At the turn of the century it is clear that the Ford Motor Company is a very solid and stable company that appears to have an almost flat, consistent revenues line. As the years on the chart continue the chart begins to show dips and rises in revenues. In the year 2006, the Ford Motor Company drops in its revenues due to an unstable economy, but quickly recovers and rises back to where it was by 2007. Suddenly in 2008 a huge economic recession hit the economy and caused Ford’s revenue to plummet. Due to the current economic situation, Ford is still struggling to reestablish itself at the same revenue levels that it once had. Over time as the economy recovers, the Ford Motor Company will regain the revenues it used to …show more content…
However, these two charts do differ in a few ways. One is that at the national level, profits and RGDP is displayed in a percentage of growth while at the company level the annual profits are displayed as number for the company revenue. Although one is based off of percentages and the other only revenue numbers, they still resemble as similar trend. In these two charts, the national annual real GDP was measured over a ten-year trend from 2001 to 2011, while the annual revenues of Ford Motors was measured over an eleven-year period from 2000 to 2011. After reviewing both charts it is clear that the national annual real GDP fluctuates much more than the annual revenues of the Ford Motor Company. While at the national level there were rises and dips in the early to mid 2000’s, the Ford Motor Company shows that their annual revenue stay almost the same with a low dipping yet very stable