Preview

Capital Structure within Ford

Powerful Essays
Open Document
Open Document
1308 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Capital Structure within Ford
Table of Contents

Abstract

Overview of Ford Motor Company

Ford Motor Company Capital Structure

Business and Financial Risks
The Modigliani and Miller Theory of Capital Structure and Criticisms
Optimal Capital Structure at Ford
References

Abstract

The purpose of this paper is to analyze Ford Motor Company’s capital structure to understand the financial risks and companies financial make up. The research paper will also discuss the Modigliani and Miller capital structure theory including common criticisms. To understand Fords profitability we will take a close look at their financial ratios including stock rates and future analysis of the company’s assets. Research was done by reading news articles, online periodicals and stock references including Fords own annual reports and website. In conclusions we will understand the optimal structure for Ford Motor Company and what should be done to ensure continued success within an ever changing industry.

Overview of Ford Motor Company
Henry Ford founded Ford Motor Company on June 16th, 1903 with several partners in Dearborn, Michigan. During the early years the company produced several vehicles ranging from the Model A in 1903 to The K, in 1907. The most notable of the Ford motor company vehicles is the Model T in 1909. Ford built over 18,000 Model T’s in 1909, by 1912 they were producing over 170,000 which required a move to a larger plant. By this time Ford Motor Company was international and within the next few decades it would expand overseas to include Austria, Argentina, Ireland and Australia to name a few. Henry Ford was in control of the company until his wife and daughter demanded that he give over control of the company to his grandson in 1943. Ford died in 1947, attracting over 7 million viewers at a national level. Ford Motor Company would go on to be the largest and most profitable companies in the world. They would


References: axis, M. (2014). Ford Debt to Equity. Retrieved from macro axis: http://www.macroaxis.com/invest/ratio/F--Debt-to-Equity Ford. (2012). 2012 Annual Report. Retrieved from Corporate.ford.com: http://corporate.ford.com/doc/ar2012-2012%20Annual%20Report.pdf Taylor III, A. (2009). Fixing Up FORD. (Cover story). Fortune, 159(11), 44-52. Retrieved from EBSCOhost. Yahoo. (2013, Feb). Form 10-K for FORD MOTOR CO. Retrieved from Yahoo! Finance: http://biz.yahoo.com/e/130219/f10-k.html
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Powerful Essays

    BUS 401 Week 5 FInal Paper
    • 1428 Words
    • 6 Pages

    BUS 401 Week 5 FInal Paper

    Henry Ford founded Ford Motor Company in the year 1903 at Dearborn, Michigan, USA and is known to have adopted practices that were not popular in those days. Henry Ford is popular for his practices that were unique in those days as he believed in revolutionary ideas and building revolutionary leadership. He practiced worker friendly policies, innovative methods of large scale car manufacturing and management of huge workforces. He designed a unique mechanism of flexible assembly lines with interchangeable parts that ensured that same part can be fitted in multiple models of the products.…

    • 1428 Words
    • 6 Pages
    Powerful Essays
    Read More
  • Good Essays

    Hrm 531 Week 1
    • 861 Words
    • 4 Pages

    Hrm 531 Week 1

    Ford Motor Company started as the Detroit Automobile Company and after it failed Henry Ford moved on to reorganize it in 1901. He renamed the company to the Henry Ford Company. Ford then went on to produce only a few cars a day in the company’s factory in Detroit, Michigan. Henry Ford introduced the assembly line manufacturing process between 1908 and 1915 which was innovative for that time period where production rates was faster and rendering costs lower. The T model produced by the Ford Motor Company was in production from 1908 to October 1927. This model was considered to be the first automobile that was an affordable means of transportation for middle class Americans during that time period. Henry Ford quote about the T model “…it will be so low in price that no man making a good salary will be unable to own one — and enjoy with his family the blessing of hours of pleasure in God 's great open spaces” (Henry Ford 1922 Chapter IV). Ford Motor Company did survive the Great Depression but it did suffer from it like most companies and businesses during that time period. The Ford Thunderbird was introduced to compete with Chevrolet’s Corvette, it was a sleek, two door V8 engine car. On February 24, 1956 Ford Motor Company went public with 350,000 new stockholders. Ford Motor Company has been the largest family-controlled company in the world and for over 100 years the Ford Motor Company has been in continuous family control. Ford’s core and associated automobile brands include Aston Martin, Ford, Jaguar, Land Rover, Lincoln, Mazda, Volvo, and Mercury. Ford Motor Company will face legal issues in the wake of the economic downturn to the present day. Unions will not be willing to stand by while ford closes down plants to become profitable again and this is an issue for both parties. As of fall 2011 the UAW (united auto workers) has threatened Ford Motor Company with…

    • 861 Words
    • 4 Pages
    Good Essays
    Read More
  • Good Essays

    Ford Superbowl Commercial Analysis
    • 845 Words
    • 4 Pages

    Ford Superbowl Commercial Analysis

    The Ford Motor Company was founded on June 16, 1903 by Henry Ford, a chief engineer at the Edison Illuminating Company with years of experience working on steam engines. Having sufficient knowledge on how the automotive industry works, Ford establishes a company with the appropriate leadership and a strong foundation. After many different trails and configurations Ford introduced the Model T in October of 1908, and for several years the company posted hundred percent gains. Ford created the moving assembly line technique of mass production and simultaneously paying his workers steady wages as a method of keeping the best workers loyal to his company. In 1918 more that half of the cars were the Ford Model T in the United States. Henry Ford is considered one of America’s leading businessmen by building the economy during the nation’s early…

    • 845 Words
    • 4 Pages
    Good Essays
    Read More
  • Powerful Essays

    F150
    • 2530 Words
    • 11 Pages

    F150

    Ford motor company is home base in Dearborn, Michigan, the company was founded Henry Ford and the first model car was “A” built in 1903. Today Ford employs 198 thousand employees in 90 automobile plants expanding across six continents. The company manufacture five automotive brands; Ford, Lincoln, Mercury and Volvo. Ford is management is made up of a board of directors, with William Clay Ford, Jr leading the way as Executive Chairman and Chairman of the Board and Alan R. Mulally President and CEO; in 2009 Fords total sales and revenues came to over 118 millions dollars. Ford must compete with General Motor, Toyota and Chrysler for customer business.…

    • 2530 Words
    • 11 Pages
    Powerful Essays
    Read More
  • Good Essays

    Henry Ford's Inventions
    • 126 Words
    • 1 Page

    Henry Ford's Inventions

    Henry Ford was a brilliant engineer, who had an assortment of inventions producing to the automobile industry in the early 1900s. Of these inventions, arguably the most essential, was the Model T. The Model T was invented to give the public a more accessible and affordable automobile, which the ordinary person could drive. After being invented in Detroit, Michigan and introduced to the public in 1908, the accessibility of the Model T made it extraordinarily popular for several years. The inspiration for this ingenious invention was that Ford wanted a car that was affordable and able to be produced in great volume. Over the course of a year, Ford invented and tested the Model T on rough roads before its introduction to the public in 1908.…

    • 126 Words
    • 1 Page
    Good Essays
    Read More
  • Better Essays

    How Did Henry Ford Affect The Economy
    • 1372 Words
    • 6 Pages

    How Did Henry Ford Affect The Economy

    As mentioned before, Henry Ford had established his company, Ford Motor Company, in 1905. In 1908 he introduced his first vehicle, the Model T which sold 34,000 cars at $700 each in 1910 and 730,000…

    • 1372 Words
    • 6 Pages
    Better Essays
    Read More
  • Better Essays

    Inventions Of The Roaring 1920's
    • 1912 Words
    • 8 Pages

    Inventions Of The Roaring 1920's

    The Ford Model T was an automobile invented by Henry Ford. Henry Ford Company was called Ford Motor Company, and was successful from 1908 through 1927. It was considered the first affordable automobile. The first Model T was built on September 27,…

    • 1912 Words
    • 8 Pages
    Better Essays
    Read More
  • Good Essays

    How Did Henry Ford Contribute To Manufacturing
    • 1037 Words
    • 5 Pages

    How Did Henry Ford Contribute To Manufacturing

    (p.1). The money that the employees would be earning in 1914 would be equal to one-hundred and ten dollars in 2011. In 1927, fourteen years after he constructed the first Model T, Ford decided that he was going to move his workers and his plant into a bigger and upgraded factory that included a glass and steel mill and an assembly line that was built on the banks of a river in Dearborn, Michigan. The same year that Henry and his employees vacated to a new location, would be the same year that he stopped the production of the Model T, and began and introduced the Model A.…

    • 1037 Words
    • 5 Pages
    Good Essays
    Read More
  • Good Essays

    Compare And Contrast The Automobile And The Radio In The 1920's
    • 730 Words
    • 3 Pages

    Compare And Contrast The Automobile And The Radio In The 1920's

    The Ford Model A was the first car created by Henry Ford in the early 1900’s. However, Henry Ford created the first car in the 1920’s on an assembly line, the Model T. The Ford Model T became one of the most popular vehicles by 1927. Ford’s major competition was The General Motor Company, otherwise known as, GM. William Durant founded GM in 1902. His company saw many ups and downs, but the 1920’s was great time for GM. Popular GM car models were the 1926 Pontiac and the 1924 Buick.…

    • 730 Words
    • 3 Pages
    Good Essays
    Read More
  • Good Essays

    Henry Ford, hero or villain
    • 1433 Words
    • 6 Pages

    Henry Ford, hero or villain

    After Ford created the Quadricycle in 1896 he joined investors to establish a company that would manufacturer automobiles, however the two companies disbanded (Detroit Automobile Company and the Henry Ford Corporation) so Ford used publicity to encourage people to buy his cars, he built race cars and his name became well known, however most people didn’t need a race car as they wanted something reliable and this lead to ford designing the Model A, Ford created many cars such as Model B, C and so on but in 1908 he designed the Model T. The Model T was fast, light and strong as he used Vanadium steel which was the strongest steel at the time. Also the Model T was cheap as it was $850 which allowed the population who had a normal income to be able to buy the Model T as cars were normally priced between $1000-$2000, and by 1913 200,000 Model T’s were manufactured as well as the fact that in 1914 the Model T only cost $418. The invention of the Model T makes Henry Ford a hero because it allowed the farming population to travel to the cities which meant that they could sell their goods as well as look at farming technology, as well as the fact that the city population could go on pleasure drives around the country and families could go on holidays.…

    • 1433 Words
    • 6 Pages
    Good Essays
    Read More
  • Powerful Essays

    Automotive Industry Financial Analysis
    • 5420 Words
    • 22 Pages

    Automotive Industry Financial Analysis

    The two largest automakers in the world want to maintain their status as the top two. GM and Ford have been around for over one hundred years making automobiles for everyone to enjoy. During these recessionary times it will be very hard for these two companies to survive.…

    • 5420 Words
    • 22 Pages
    Powerful Essays
    Read More
  • Good Essays

    Ford Motor Co
    • 730 Words
    • 3 Pages

    Ford Motor Co

    Ford Motor Company, the second largest auto manufacturer in the world was started in 1903 by Henry Ford. With 276 plants, distribution centers, engineering, research/development and sales facilities, Ford Motor Company manufactures and distributes in over two hundred markets across six continents. Ford Motor Company’s focus is to build a strong business that produces products that contribute to a better world. Their first sale was on July 15, 1903 and since then Ford has produced over 300 million vehicles.…

    • 730 Words
    • 3 Pages
    Good Essays
    Read More
  • Best Essays

    Google Capital Structure Analysis
    • 2070 Words
    • 9 Pages

    Google Capital Structure Analysis

    The course project involved developing a great depth of knowledge in analyzing capital structure, theories behind it, and its risks and issues. Before I began this assignment, I knew nothing but a few things about capital structure from previous unit weeks; however, it was not until this course’s final project that came along with opening doors for me to developing a real understanding of why capital structure is important, what to expect from it, and how to evaluate in determining value of a firm. For the first time, various financial statements were closely examined and retrieved via online including Google, MSN, and Yahoo and an extensive amount of research were referred to in order to ensure quality in the project and report any findings that may be relevant to this research. One of the most stimulating part about this assignment was that we were allowed to select a firm of our interest and it was not until this project that I’ve came to suddenly realize there is plentiful amount of information available to enrich us to knowing more about how and why the values are placed about in a firm which convinced me enough to feel that this was the main reason why I selected this assignment to be included for my program portfolio.…

    • 2070 Words
    • 9 Pages
    Best Essays
    Read More
  • Best Essays

    Ford Motor Company Analysis
    • 1153 Words
    • 5 Pages

    Ford Motor Company Analysis

    Ford Motor Company, founded in 1903, has been a global multi-business company since the 1920’s. Currently Ford has major manufacturing facilities in the United Kingdom, Canada, Mexico, Germany and many other countries, 200,000+ employees and automobiles distributed in over 200 markets across 6 continents (Ford Annual Report 2009). Ford has utilized its product portfolio, brand strategy and global business structure to withstand recent financial disasters in the auto industry and strive towards its vision to be the world’s leading consumer company for automotive products and services.…

    • 1153 Words
    • 5 Pages
    Best Essays
    Read More
  • Powerful Essays

    case study about ford company
    • 1219 Words
    • 5 Pages

    case study about ford company

    Ford Motor Company is one of the first American automotive companies that even today successfully manufactures and sells automobiles, trucks, buses and automotive parts. Ford is the second largest US automaker and the fifth largest vehicle seller in Europe and the world. Their headquarters are based in Dearborn Michigan. The company was founded in 1903 by Henry Ford. Ford owns a series of motor vehicle brands which includes Ford, Lincoln, Volvo and Mazda. Ford motor company has subsidiary companies in U.K, Japan and Sweden.…

    • 1219 Words
    • 5 Pages
    Powerful Essays
    Read More

Related Topics