Ford Motor Company Final Report Essay

2149 WordsDec 8, 20169 Pages
Ford Motor Company Final Report Profitability is a crucial element in determining the financial health of a company. The financial statement analysis is what allows the company’s managers to point the stability out of the company. This encompasses the income statement, the balance sheet, the cash flow, and the profitability and the liquidity ratios, which are established from December, 2012 until the third quarter (June to September), which means 5 years of ratio focus. These ratio analyses establish a company’s current financial health and potentiality; they also allow managers to compare the current and past performance of a company to identify and fix any given problem (Auerbach, 2016). Managers can decide in something for the company depending on the results of the ratios. Therefore, it can be said that Ford Motor Company is in good financial health as it is established in the results of its financial ratio analysis: the current ratio, the quick ratio, the return on investment ratio (ROI), the debt to equity ratio, the net working capital, and the strategic vision, the strategic objectives, the corporate strategy, the strategy implementation, and the evaluation and control. Current Ratio The current ratio belongs to the liquidity ratios and determines the company 's ability to pay short-term obligations (Guru Focus, 2016). The current ratio indicates if a company has enough money to face its daily obligations. According to the information given in the balance sheet in

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