The Financial Position Of Ford Motor Company

1084 WordsMay 6, 20165 Pages
Financial ratios are significant tools of measurement of the soundness and stability of a firm within its internal structures and operations. The computation of the various financial ratios enables a firm in evaluating its financial and market position relative to the industry competition. This paper aims to assess the financial position of Ford Motor Company in comparison with General Motors Company. The evaluation will consider the computation of ratios such as; liquidity ratios, profitability ratios, dividend policy ratios, asset turnover ratios, and financial leverage ratios. The automotive companies are both listed on the NYSE exchange with the symbol ‘F’ being the ticker representation of Ford Motor Company, and ‘GM’ is the ticker symbol for General Motors Company. General Motors Company is a transnational corporation with its headquarters located in Detroit, Michigan with its CEO Mary T. Barra. It is through its headquarters that the firm manufactures, designs, distributes and markets the vehicles and parts. Also, the company is involved in the sale of financial services to its customers. The company founded in 1908, recorded revenues of about US$152.4 billion in the financial year 2015 (General Motors 2016). It is quoted on the NYSE exchange with its ticker being GM. On the other hand, Ford Motors Company is also a universal mobility and automotive company. The company focuses on business including manufacturing, designing, financing, marketing, and servicing of

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