Ford Motor Company Is A Good Investment Essay

In this paper I intend to provide a sound financial analysis of Tesla Motors Incorporated. I will do so by calculating and providing liquidity, profitability, and solvency ratios and then evaluating those results. Assessment of these ratios will more or less define Tesla Motors’ abilities to meet its short-term debts and obligations (liquidity), performance in relation to sales, assets, and profits or losses (profitability), and the resulting income amount, after tax deductions, against the company’s liabilities (solvency). Additionally I will compare

Ratio analysis is a very useful tool when it comes to understanding the performance of the company. It highlights the strengths and the weaknesses of the company and pinpoints to the mangers and their subordinates as to which area of the company requires their attention be it prompt or gradual. The return on shareholder’s fund gives an estimate of the amount of profit available to be shared amongst the ordinary shareholders; where as the return on capital employed measures an organization 's profitability and the productivity with which its capital is utilized. Return on total assets is a profitability ratio that measures the net income created by total assets amid a period.

In conclusion, we can state that Ford’s ratios shows a lot about the situation of the company. It’s clear, that also its book value equity and the net income were negative in the last years, it can realize a less than 3000 million $ net income only in 2009. In addition, its sales fall short of the previous ones, the operating revenue decreases continually. Besides, the total debt of the company is also very high, over the past 4 years it remained over 100 billion $ all the time, but it lessens yearly, as the interests too. The amount of Ford’s total

The paper illustrates that financial ratio analysis is an important tool for firm’s to evaluate their financial health in order to identify areas of weakness so as to institute corrective measures.

Ideas introduced in the article assist in understanding Ford’s current situation. Ford reported sharp falls in U.S. auto sales in May 2008. Sales of its most profitable pickups and SUVs suffered the most (“US Auto Sales Slide”). Some of the main

Actually, Ford is aware of the needs and likes of the customers, so the company offers them a variety of vehicles from fuel gas to electrical systems with financial plans to afford them. Through its attainable mission and vision, Ford shows customers how solid it is in the business. The Ford Foundation really helps people to continue studying, in finding a cure for diabetes and breast cancer, and in initiatives to preserve American’ heritage, in order to improve their quality of life. It is important to highlight that to be a successful company doesn’t only mean to get a lot of profit in revenues, get innovation, and improve technology; it goes beyond that. It also includes taking into account people. Therefore, Ford started in the business with a strong background, clear objectives, a solid vision and a solid mission that have allowed it to position itself in the place where it is; thus, its products and services along with the nonprofit organization it supports make Ford Motor Company become

General Motors incorporates entrepreneurship and innovation into its business objectives. This is evident in General Motors Vision statement which states that its goal is to “lead in advanced technologies and quality by creating the world’s best vehicles”. (1) For instance General Motors has an extensive R & D, Design, and Engineering department that oversees the creativity, innovation, and invention of its strategic technologies and innovation programs which are aligned with its corporate vision. In order to lead in advanced technologies of the world’s best vehicles General Motors incorporates entrepreneurship and innovation concepts, which are essential to competing in the global market place.(2) In the spirit of entrepreneurship, which

Henry Ford was an engineer from Detroit, Michigan who had an idea. By 1902, Ford had attempted several times to produce a gas powered vehicle, but with little capital, he realized that his attempts were futile. Ford approached a man by the name of Alexander T. Malcomson about the possibility of manufacturing an automobile. Malcomson, a friend of the family and wealthy coal merchant was reluctant at first but finally agreed with Ford, and decided to assit Ford financially with his endeavor. With Malcomsons investment and Ford's engineering skills a partnership was formed and in mid June of 1903, papers of incorporation for the Ford Motor Company were filed in Dearborn, Michigan.

I will be comparing both companies General Motors Company and Ford Motor Company for the past three years. We will be able to see all the trends these two automotive manufacturers have and which one may be better to invest in by looking at the last few year’s ratios and percentages. This will give us a better understanding and the knowledge of who maybe the industry leader and who is the follower. These are both major corporations that strive off customer loyalty and both competing on a global scale to make their mark in the one of the top automotive manufacturers in the world. This analysis will give us an understanding of what lies ahead in the future for these two manufacturers.

There are a lot of factors to think about as a mutual fund manager when deciding whether to invest in a company. When it comes to investing in Ford Motor Company, I will have to make a decision on whether the investment strategy and the associated risks will be a good fit for me and my company. Most

In addition to both short and long term solvency, a company’s return on invested capital should be analyzed when determining its financial health. Ford’s

Profitability (performance) ratios are used to assess a company’s ability to create equity as compared to its debt and other appropriate expenses created during a particular time frame. A favorable analysis of profitability ratios will reveal that a company’s value is higher than a competitor’s value.

Table 1, below, will show financial ratios of PepsiCo Inc. The table consists of 5 major elements. Profitability refers to how much income was generated by PepsiCo Inc. Then, asset management refers to how effectively the invested assets were used in the business by PepsiCo’s management team. Liquidity and solvency are the related conception of analyzing financial risk. Liquidity refers to the ability of PepsiCo Inc. to generate cash and is often considered a good indication of the company’s ability to pay its short-term obligations; while, solvency generally refers to the ability of company to repay its outstanding long-term obligation. Lastly, ROE Model Framework is the return on equity and reveals that a firm’s ROE can be decomposed into the three component ratios of return on sales, asset turnover, and financial leverage which will be used for sustainable growth rate later.

Profitability is vital to success for Ford Motors. A profitable business pays interest to lenders, tax to authority and dividend to shareholders and bonuses to employees in time. It helps in satisfying all the stakeholders of FM. A profitable FM creates more opportunity for growth and a growing FM will generate further profit to satisfy the stakeholders. So, this

Ford Motor Company was incorporated in Delaware in 1919. They acquired the business of a Michigan company, also known as Ford Motor Company, which had been incorporated in 1903 to produce and sell automobiles designed and engineered by Henry Ford. They are one of the world’s largest producers of cars and trucks. They and their subsidiaries also engage in other businesses, including financing vehicles.