Ford Motor Company Analysis
Unit 5 Final Project: Ford Motor Company
Executive Summary Ford Motor Company is an American automobile manufacturer founded and headquartered in Dearborn, Michigan but incorporated in the state of Delaware. The company was started by Henry Ford in 1903 and is historically famous for the creation and implementation of the assembly line in manufacturing processes. Ford’s mission is to produce and sell automobiles – cars, trucks, SUVs, etc – from the ones initially designed and engineered by Henry Ford all the way through the newer versions created in the last few years. (Profitable Growth for All, 2012) In 2011, the company performed strongly – producing revenues of $134,264,000,000 and net income of $20,213,000,000. Financial data has been gathered from the 2011 annual report and 10-K forms filed with the SEC for further analysis. Appendix A contains these reports and appendix B contains select financial ratios calculated in the analysis. The ratios are divided into six major categories: short-term liquidity, capital structure and solvency, return on invested capital, asset turnover, operating performance and profitability, and financial market measures. All six combine to provide an overall picture of financial health for the company. The below analysis provides evidence that, although Ford’s public stock may be overvalued, the company itself is in good financial health.
Company/Industry Description
Ford is one of the world’s largest producers of cars and trucks but also engages in other business sectors, particularly vehicle financing, through subsidiaries. The major segments of the automotive production and sales portion include Ford North America, Ford South America, Ford Europe, and Ford Asia Pacific-Africa. Ford Motor Credit Company is the predominant financing subsidiary of the firm. (Profitable Growth for All, 2012)
As of 2011, Ford Motor Company’s vehicle brands included Ford and Lincoln; between the two lines, the company sold over 5.5 million
Executive Summary Ford Motor Company is an American automobile manufacturer founded and headquartered in Dearborn, Michigan but incorporated in the state of Delaware. The company was started by Henry Ford in 1903 and is historically famous for the creation and implementation of the assembly line in manufacturing processes. Ford’s mission is to produce and sell automobiles – cars, trucks, SUVs, etc – from the ones initially designed and engineered by Henry Ford all the way through the newer versions created in the last few years. (Profitable Growth for All, 2012) In 2011, the company performed strongly – producing revenues of $134,264,000,000 and net income of $20,213,000,000. Financial data has been gathered from the 2011 annual report and 10-K forms filed with the SEC for further analysis. Appendix A contains these reports and appendix B contains select financial ratios calculated in the analysis. The ratios are divided into six major categories: short-term liquidity, capital structure and solvency, return on invested capital, asset turnover, operating performance and profitability, and financial market measures. All six combine to provide an overall picture of financial health for the company. The below analysis provides evidence that, although Ford’s public stock may be overvalued, the company itself is in good financial health.
Company/Industry Description
Ford is one of the world’s largest producers of cars and trucks but also engages in other business sectors, particularly vehicle financing, through subsidiaries. The major segments of the automotive production and sales portion include Ford North America, Ford South America, Ford Europe, and Ford Asia Pacific-Africa. Ford Motor Credit Company is the predominant financing subsidiary of the firm. (Profitable Growth for All, 2012)
As of 2011, Ford Motor Company’s vehicle brands included Ford and Lincoln; between the two lines, the company sold over 5.5 million
References: (2012). Profitable growth for all: Ford motor company 2011 annual report. Retrieved from Ford Motor Company website: http://corporate.ford.com/doc/2011 Ford Motor Company AR_LR.pdf Debt/equity ratio. In (2014). Investopedia. Retrieved from http://www.investopedia.com/terms/d/debtequityratio.asp United States Securities and Exchange Commission, (2012).Ford motor company 10-k . Retrieved from Ford Motor Company website: http://phx.corporate-ir.net/phoenix.zhtml?c=87772&p=irol-SECText&TEXT=aHR0cDovL2Fwa S50ZW5rd2l6YXJkLmNvbS9maWxpbmcueG1sP2lwYWdlPTgwODI3MDYmRFNFUT0wJlNFUT0wJlNRREVTQz1TRUNUSU9OX0VOVElSRSZzdWJzaWQ9NTc= Wahlen, J., Baginski, S., & Bradshaw, M. (2008).Financial reporting, financial statement analysis, and valuation. (7th ed.). Mason, OH: South Western CENGAGE Learning. Young, A. (2014, Feb 13). Us new auto inventories highest since '09; gm, volkswagen top list; kia, hyundai up most; toyota stock at 'healthiest ' level. International Business Times, Retrieved from http://www.ibtimes.com/us-new-auto-inventories-highest-09-gm-volkswagen-top-list-kia-hyundai-most-toyota-stock-healthiest