Ford Motor Company
Ford Motor Company
GROUP PROJECT
ACC 505 - FINANCIAL ACCOUNTING 12/01/96
TABLE OF CONTENTS
DESCRIPTION PAGE
INTRODUCTION........................................................1
LIQUIDITY...........................................................1-3 Working Capital...................................................1 Current Ratio & Quick Ratio.......................................2 Receivable Turnover & Average Days' Sales Uncollected.............2-3 Inventory Turnover & Average Days' Inventory on Hand..............3
PROFITABILITY.......................................................3-7 Profit Margin.....................................................3-4 Asset Turnover....................................................4-5 Return on Assets..................................................5 Debt to Equity....................................................5-6 Return on Equity..................................................6-7
CONCLUSION..........................................................7-8
APPENDIX............................................................9
INTRODUCTION
Ford Motor Company, a large United States automotive corporation, strives for success each and every year. The success of Ford Motor Company, as well as other corporations, can be measured by analyzing the two most important goals of management, maintaining adequate liquidity and achieving satisfactory profitability. Liquidity can be defined as having enough money on hand to pay bills when they are due and to take care of unexpected needs for cash, while profitability refers to the ability of business to earn a satisfactory income.
To enable investors and creditors to analyze these goals, Ford Motor Company distributes annual financial statements. With these financial statements, liquidity of Ford Motor Company is measured by analyzing factors such as working capitol, current ratio, quick ratio,
GROUP PROJECT
ACC 505 - FINANCIAL ACCOUNTING 12/01/96
TABLE OF CONTENTS
DESCRIPTION PAGE
INTRODUCTION........................................................1
LIQUIDITY...........................................................1-3 Working Capital...................................................1 Current Ratio & Quick Ratio.......................................2 Receivable Turnover & Average Days' Sales Uncollected.............2-3 Inventory Turnover & Average Days' Inventory on Hand..............3
PROFITABILITY.......................................................3-7 Profit Margin.....................................................3-4 Asset Turnover....................................................4-5 Return on Assets..................................................5 Debt to Equity....................................................5-6 Return on Equity..................................................6-7
CONCLUSION..........................................................7-8
APPENDIX............................................................9
INTRODUCTION
Ford Motor Company, a large United States automotive corporation, strives for success each and every year. The success of Ford Motor Company, as well as other corporations, can be measured by analyzing the two most important goals of management, maintaining adequate liquidity and achieving satisfactory profitability. Liquidity can be defined as having enough money on hand to pay bills when they are due and to take care of unexpected needs for cash, while profitability refers to the ability of business to earn a satisfactory income.
To enable investors and creditors to analyze these goals, Ford Motor Company distributes annual financial statements. With these financial statements, liquidity of Ford Motor Company is measured by analyzing factors such as working capitol, current ratio, quick ratio,