Essay on General Motors SEC 10K 2013

2. List the four basic types of financial ratios used to measure a company’s performance, give an example of each type of ratio and explain its significance.

Financial ratio analysis is a valuable tool that allows one to assess the success, potential failure or future prospects of the company (Bazley 2012). The ratios are helpful in spotting useful trends that can indicate the warning signs of

Research papers have educated that there are multiples of variables, which contribute into play varying degree of influence on the profitability of the organization. Therefore it is desirable for financial managers to gauge the prime variables exerting substantial influence on the profitability. Following two papers were referred to carry out this project, “An example of the use of financial ratio analysis: the case of Motorola” by H. W. Collier(2007), University of Wollongong.In this paper, they have demonstrated the use of actual financial data for financial ratio analysis. The objective is to show how to compute ratios for an actual company. This paper demonstrates the difficulties in applying the principles of financial ratio analysis when the data are not homogenous as is the case in textbook examples. Therefore in this paper, financial ratio analysis is complicated for companies that do not readily fall into a single industry. Motorola has 6 operating units that fall into several industries with two industries accounting for most of the sales- telecommunication and semi-conductor. However, a more relevant picture of the operating characteristics of Motorola is achieved by increasing the complexity of the analysis, that is, by comparing Motorola to both industries.“Financial ratio analysis as a determinant of profitability in Nigerian Pharmaceutical

Ratios of ten companies are presented in this study. The companies are all headquartered in the United States and the financial statements are the most recent annual financials for the respective fiscal years ending in 1999 or 2000.

About the rate of Ford’s growth we can say it decreases. From 2007 the operating revenue, the gross operating profit and also the EBITDA reduced strongly from year to year. In 2007, its operating revenue was more than 170 million $, whereas just 118 million $ last year. However, the rate of the depreciation and the interest expenses lessened in the recent years, so Ford could realize raising net income. Its free cash flow growth was also negative last year, and 6 companies had passed Ford in this aspect in the industry. Also its revenue and net profit margin are less than the main competitors’ ones in the recent years, by the former GM and Toyota come before the Ford, by the latter also the Toyota, Honda, SORL and Tata.

In June of 2009, General Motors Corporation filed for bankruptcy, and later rebirthed as General Motors Company in July 2009. As a smaller, leaner, and more focused company than GM Corporation, the four brands kept under the GM name are Chevrolet, Buick, GMC, and Cadillac. The company’s top markets by sales are China, the United States, Brazil, the United Kingdom, and Germany. General Motors Company has always been a well-known name in the automotive industry, and is still around today.

In 2008, Ford produced 5.532 million automobiles and employed about 213,000 employees at around 90 plants and facilities worldwide. The company went public in 1956, but the Ford family still retains 40 percent voting rights.

Current ratio Cash Ratio Parts Inventory Turnover in Days WP Inventory Turnover in Days FG Inventory Turnover in Days A/R Turnover in Days A/P Turnover in Days Cash Conversion Cycle Fixed Assets Turnover Total assets Turnover Debt Ratio LT Debt total Capitalization Times Interest Earned Cash Flow Coverage Gross profit Margin Operating profit Margin Net Profit Margin Return on Assets Return on Equity

According to the latest results issued by General Dynamics on January 28, 2012 the company's previous year's objectives were met (overall) and will continue to be met in the future. The company announced that full year revenue for 2011 was $32.7 billion and that earnings per share rose from $6.82 per share (2010) to $6.93 per share (2011).

The Net Profit Margin in 2012 was 10.5% while in 2013 it was 66.6%. This increase in the Net Profit Margin can be attributed to the increase in net profits after taxes despite the fact that there was a slight decrease in revenues.

CMG reported total assets account of grew between 2011 and 2013. In 2012 total assets was $243,359 more than in 2011 or a 17% change. Total current liabilities also increased steadily over the period with 2012 current debts amounting to $186,852 a 12% debt increase over 2011. However, total current liabilities for the same year totaled $422,741, a 19% increase or 29,399 dollar value increase over 2011. Despite the increase in liabilities CMG had a 41% increase change in retained earnings for the 2012 fiscal year. CMG current ratio for 2012 remained above 1 regardless of being lower than 2011. However, the changes in 2012 spread through to 2013 where the liquidity power of the company was increased. Overall, based on the above information CMG has the financial capability to implement

As I wrote earlier, Ford, General Motors and Chrysler are called “big three”. They used be the best of best and still are. But the appearance of those companies such as Toyota, Honda, Nissan, Volkswagen and FIAT make the industry more competitive. Now, we (consumer) have more choices which car to buy and that 's how the industry become more and more competitive. According to the Motley Fool, Toyota sold 10.23 million vehicles in 2014 and ranked number one (Rosevear, 2015). Volkswagen group ranked the second, it sold 10.14 million vehicles in 2014 (Rosevear,2015). Finally, General Motors the company from the United States ranked the third place, it sold 9.92 million vehicles worldwide in 2014, falling to third place in a race that it led as recently as 2011. But GM is under different management these days, and CEO Mary Barra is focused much more on the company 's profitability than she is on its sales rankings. Given that GM 's profits have trailed its global peers ' for years, that 's absolutely the right emphasis now (Rosevear, 2015). And Ford

General Motors is primarily engaged in automotive production and marketing and financing and insurance operations. GM designs, manufactures, and markets vehicles worldwide, have its largest operating presence in North America. The core competence of General Motors is innovation. This is the driving force behind its $190 above turnover. General Motors has been utilizing innovation in service ad technology to secure itself a dominant position in the automobile industry, since 1908.

selected financial ratios computed from fiscal year 2011 balance sheets and income statements for 13 companies from the following industries:              airline railroad pharmaceuticals commercial banking photographic equipment, printing, and sales discount general-merchandise retail electric utility fast-food restaurant chain wholesale food distribution supermarket (grocery)

In 2009 Toyota Motors (TM) posted a net loss of $4.6 billion ("Market watch," 2014). From 2009 to 2011 Toyota encountered a number of factors contributing to their economic downturn. It began with recalling millions of vehicles, for quality related problems, followed by natural disasters hitting northeastern Japan. These disasters wiped out Toyota’s production capabilities (Tabuchi & Vlasic, 2014). While these events were occurring, the cloud of the 2008 global financial crisis was still being felt. This crisis weakened demand in the automotive industry. This weakened demand increased the competitive landscape for all automotive manufactures. This drove down automotive prices and effectively contribution margins (i.e. sold less