Ford Motor Company Essay -- Ford Transportation Vehicles Automobiles E

Ford ram CompanyFord Motor Company, a large United States automotive corporation, strives forsuccess each and every year. The success of Ford Motor Company, as well as opposite corporations, can be measured by analyzing the two most fundamental goals ofmanagement, maintaining adequate fluidity and achieving satisfactory advantageousness. Liquidity can be outlined as having enough money on hand to paybills when they are due and to take care of unexpected needs for cash, while cabbageability refers to the ability of business to earn a satisfactory income.To enable investors and creditors to essay these goals, Ford Motor Companydistributes annual financial statements. With these financial statements,liquidity of Ford Motor Company is measured by analyzing factors such as workingcapitol, current ratio, degraded ratio, receivable turnover, average days salesuncollected, ancestry turnover and average days inventory on hand whereasprofitability analyzes the profit margin, asset turnov er, return on assets, debtto equity, and return on equity factors. fluidness Working CapitalFord Motor Companys working capital fluctuated importantly in the years1991-1995. This phenomenon is directly attributable to the fact that Financial serve current assets and current liabilities are not include in the docompany current asset and current liability accounts. For example, thefluctuation from 1994 ($1.4 one million million million) to 1995 (-$1.5 billion) of $2.5 billionwould suggest that Ford would be unable to pay liabilities during the currentperiod. However, trial run of the Financial Services side of the businessreveals that surpluses of $13.6 billion existed in twain 1994 and 1995,convincingly mitigating the figures indicating negative working capital.Current symmetry & Quick RatioThe current ratio in the years 1991-1995 has remained stable, fluctuatingbetween 0.9 and 1.1. The quick ratio has also remained stable, fluctuatingbetween 0.5 and 0.6. The larger fluctuation in the current ratio versus thequick ratio is caused by inventories being included in the asset side of theequation. Although inventories were significantly higher in some(prenominal) 1994 and 1995,current liabilities were also higher. In addition, marketable securitiesdecreased substantially in 1994 and 1995. These factors resulted in thestability of both the curren... ...companyAPPENDIXDESCRIPTION PAGEconsolidated Income Statements...................................Appendix 1-2Spreadsheets..................................................Appendix 1Graphical Representation......................................Appendix 2 consolidate Balance Sheets......................................Appendix 3-5Spreadsheets.................................................Appendix 3-4Graphical Representation.....................................Appendix 5Consolidated Retained Earnings Statement.........................Appendix 6-7Spreadsheets.................................................Appendix 6Graphical Representation.....................................Appendix 7Consolidated Statement of Cash Flows.............................Appendix 8-9Spreadsheets.................................................Appendix 8Graphical Representation.....................................Appendix 9 rating of Liquidity..........................................Appendix 10-11Evaluation of Profitability......................................Appendix 12-13Liquidity & Profitability Formulas...............................Appendix 14