Ford Financial Analysis
FORD MOTOR COMPANY
FINANCIAL ANALYSIS
Table of Contents
Executive Summary……………………………………………………………. 1
Introduction…………………………………………………………………….. 2
Income Statement………………………………………………………………. 3
Balance Sheet…………………………………………………………………... 4 - 5
Statement of Cash Flows……………………………………………………….. 6
Profitability Ratios……………………………………………………………... 7
Liquidity Ratios………………………………………………………………… 8
Debt/Leverage Ratios…………………………………………………………... 8 - 9
Conclusion……………………………………………………………………… 9
References……………………………………………………………………… 10
Executive Summary
Ford Motor Company continues to strive to meet customer needs, industry challenges and world issues. Their efforts have resulted in strong financial outcomes and 3 years in a row of positive net income. Outstanding performance is anticipated to continue in the coming years. In 2012, Ford proved they were moving in the right direction. Their credit rating was restored to investment-grade, they resumed regular dividend payments and achieved 14 consecutive quarters of operating profit. Ford has a robust display in the electric vehicle market and as a result sold more hybrids in the U.S. in the last quarter of 2012 than any other period in their history. This is an example of Ford’s ongoing efforts to reduce their environmental impact from their products. Ford’s variety of low emissions vehicles allows customers to embrace fuel-saving technologies. As the number of vehicles on the road increase, Ford is determined to be the automotive leader by developing vehicles with communication technology to improve afety and reduce traffic congestion.
The One Ford plan has been a success to date and gives Ford the assurance that they will continue to grow profitably. Ford’s operating profit in 2012 was $8 billion (pre-tax) or $1.41 per share, which were record results. Their 2012 balance sheet ended with $24.3 billion gross cash, exceeding debt by $10 billion. Ford
FINANCIAL ANALYSIS
Table of Contents
Executive Summary……………………………………………………………. 1
Introduction…………………………………………………………………….. 2
Income Statement………………………………………………………………. 3
Balance Sheet…………………………………………………………………... 4 - 5
Statement of Cash Flows……………………………………………………….. 6
Profitability Ratios……………………………………………………………... 7
Liquidity Ratios………………………………………………………………… 8
Debt/Leverage Ratios…………………………………………………………... 8 - 9
Conclusion……………………………………………………………………… 9
References……………………………………………………………………… 10
Executive Summary
Ford Motor Company continues to strive to meet customer needs, industry challenges and world issues. Their efforts have resulted in strong financial outcomes and 3 years in a row of positive net income. Outstanding performance is anticipated to continue in the coming years. In 2012, Ford proved they were moving in the right direction. Their credit rating was restored to investment-grade, they resumed regular dividend payments and achieved 14 consecutive quarters of operating profit. Ford has a robust display in the electric vehicle market and as a result sold more hybrids in the U.S. in the last quarter of 2012 than any other period in their history. This is an example of Ford’s ongoing efforts to reduce their environmental impact from their products. Ford’s variety of low emissions vehicles allows customers to embrace fuel-saving technologies. As the number of vehicles on the road increase, Ford is determined to be the automotive leader by developing vehicles with communication technology to improve afety and reduce traffic congestion.
The One Ford plan has been a success to date and gives Ford the assurance that they will continue to grow profitably. Ford’s operating profit in 2012 was $8 billion (pre-tax) or $1.41 per share, which were record results. Their 2012 balance sheet ended with $24.3 billion gross cash, exceeding debt by $10 billion. Ford
References: Anonymous (2013). Ford Motor Company. Available from www.corporate.ford.com Anonymous (2013). Yahoo Finance. Yahoo. Available from http://finance.yahoo.com/q?s=f&ql=1 Anonymous (2013). Yahoo Finance Financial Statements. Yahoo. http://finance.yahoo.com/q?s=f&ql=1 Gibson, C. (2012). Financial reporting