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financial ratios analysis

Unit IV Essay

This assignment is designed to teach you how to research a company of your choice. You will be performing an analysis of the financial statements of a publicly traded company.

1. To obtain these financial statements. you will need to access https://www.sec.gov/

2. Once you are on the SEC website, click on “Company Filings” in the top right corner of the page, located under the search box.

3. You may then search by the company name or ticker symbol to locate the company you want to research.

4. Once you have obtained your company’s financial statements, it is time begin your analysis. Within your analysis you must include, but are not limited to, the following information:

 The company’s current ratio,

 debt to equity ratio,

 return on equity, and

 whether the company is improving over time.

5. You will need to support your analysis with at least one scholarly reference from the CSU Online Library. It is recommended that you use Business Source Complete for your database search, but, again, it is only a recommendation. Use your scholarly reference(s) to support your analysis of the company and its financial statements.

 

Your essay should be a minimum of two pages in length and follow APA guidelines. The CSU librarians can help you with your research for this assignment.

 

Ford Motor Co. (F)

Current ratio: A liquidity ratio calculated as current assets divided by current liabilities.

Current ratio: F $12.85

Debt-to-equity ratio: A solvency ratio calculated as total debt divided by total shareholders’ equity.

Debt-to-equity ratio: $4.80

Through the initial nine months of 2014, Ford’s deals in China were up 26% year over year. That takes after a 49% expansion in 2013. Its increments have hindered a bit in the last couple of months, to some extent since China’s general business sector is abating, however the Blue Oval is very much situated to develop deals essentially in coming years. 

Ford has opened six new manufacturing plants in the district subsequent to 2012. Another four new processing plants are set to open throughout the following year or somewhere in the vicinity. The organization’s objective has been to have a 6% offer of China’s business sector before one year from now’s over – it is surrounding 5% now – and those extra plants ought to give it the required volume.

Ford’s benefits in its Asia-Pacific locale have not kept pace with its torrid development in China, to some extent since a lot of its income was reinvested in the extension exertion. Ford Asia-Pacific earned just $415 million in 2013, and is required to win about $700 million this year. In any case, those numbers ought to go up essentially once the production lines under development start to pay off.

The upshot: Ford’s Asia-Pacific district could contribute $2 billion or increasingly a year to the automaker’s main concern after 2016, up from $415 million a year ago.

That arrangement had three sections: rebuilding, which incorporated the conclusion of three Ford plants in Europe; an extension of the organization’s provincial item offerings; and endeavors to refocus merchants on gainful retail and business armada deals while upgrading client benefit and enhancing Ford’s resale values. 

The uplifting news is that the arrangement is on track: Ford shut two U.K. production lines a year ago and is set to close a major get together plant in Belgium one month from now. On the item front, Ford is tapping its worldwide item portfolio to bring 25 new or essentially revived models (subsequent to 2012) to European merchants before one year from nows over. Also, retail deals have ascended in an extreme business sector, as Ford’s moves with merchants have started to pay off.

Ford Europe isn’t out of the forested areas yet: It will probably post lose about $600 million for the final quarter, and another $250 million in misfortunes is normal one year from now. Be that as it may, regardless of breaking down conditions in Russia and a feasible increment in the automaker’s European annuity liabilities, 2015 ought to bring a generally $1.35 billion year-over-year change to Ford Europe’s primary concern. What’s more, if Ford Europe comes back to profitability in 2016, the change could be considerably more emotional. 

 

 

 

Bibliography (n.d.). Retrieved from corporate.ford.com/company/history.html: https://corporate.ford.com/company/history.html (n.d.). Retrieved from www.stock-analysis-on.net/NYSE/Company/Ford-Motor-Co/Ratios/Long-term-Debt-and-Solvency: https://www.stock-analysis-on.net/NYSE/Company/Ford-Motor-Co/Ratios/Long-term-Debt-and-Solvency (n.d.). Retrieved from www.fool.com/investing/general/2014/12/15/3-reasons-ford-motor-companys-stock-could-rise.aspx: https://www.fool.com/investing/general/2014/12/15/3-reasons-ford-motor-companys-stock-could-rise.aspx

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