Ford Motor Company Financial Analysis Essay

890 Words Mar 19th, 2016 4 Pages
Ford Motor Company Financial Insight
Ford Motor Company’s financial analysis reveals their long-term commitment to future growth, innovation, and efficient management. Their financial statements expose their strategy for investing in long-term assets, sales and administration development and fixed assets. Furthermore, the financial statements demonstrate their resiliency to their initiatives while dealing with fluctuating market conditions. All of which empower the organization to meet their goals of reducing emissions, producing smaller vehicles, global expansion and remaining competitive.
Ratio Analysis Ratio analysis with information from financial statements, cash flow statement and income statements provide investors and managers insight for company performance, issues, and efficiency. In other words, the intent of ratio analysis is to determine the financial position and financial trends of an organization (Andrijasevic, & Pasic, 2014). By analyzing the ratios, a manager can determine liquidity and solvency of the organization. Liquidity is the available resources that are cash or rapidly converted to cash. When something is “liquid,” the asset can be easily used for buying or selling, thus the utmost liquid asset is cash. Solvency refers to the organizations assets versus liabilities. Organizations that have solvency accrue profits that exceed their liabilities, thus a higher probability of covering the liabilities. However, a company that is high in…
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