Financial Analysis for Ford Motor Corporation

Ford Motor Company was registered as a full company in 1919 and it manages operations in the international automobile industry. Ford is responsible for the manufacture and supply of vehicles in six major continents in the world and its automobile products are Ford and Lincoln. The Lincoln brand sells lavish cars while the Ford brand sells commercial vehicles and automobiles.The company also manufactures automobile spare parts, heavy trucks and tractors. Ford holds minor stakes in the U.K’s Aston Martin and Japan’s Mazda brands. Furthermore, the company is listed in the New York Stocks Exchange (NYSE); with the Ford family has minority ownership. In addition, the company’s automobile sector is composed of Ford Asia Pacific Africa Regions, Ford Europe, Ford South and North America. In the financial year 2012, the company recorded more than five million sales in units at whole sale globally. The company’s spare parts, automobiles, and other accessories are su pplies through retail traders in North America and via other global retail stores that are separately owned.Ford Asia Pacific division is focused on selling and distributing in twelve key market regions through wholesales and tracking every market in the region. Some of the regions tracked by the company include South Africa, China, Australia, India and Association of South East Nations (ASEAN). Ford Europe is involved in distribution and tracking of Ford’s wholesale brands in Russia and Turkey and it has affiliates with Ford Sollers and Ford Otosan. The Ford South and North America divisions are involved in the wholesale of both Lincoln and Ford brands.The market region is the U.S, Mexico and Canada. Motor Company competes with other global players, which include Toyota Motor Corporation, Honda Motor Company, Fiat-Chrysler, Suzuki Motor Corporation, PSA Peugeot  Citroen, General Motors Company, Mercedes-Benz, Audi, BMW, Hyundai-KIA Automotive group and Renault Nissan B.V. Horizontal AnalysisThe horizontal analysis for Ford Motor Corporation will enable to exhibit the changes of amounts in the corresponding financial statement items from 2010 to 2012. This is important in depicting and analyzing the trend in these financial years. The earliest period between two financial years is used as the base year, that is, 2010 is the base year for the horizontal analysis between 2010 and 2012, while 2011 is the base year for the horizontal analysis between 2011 and 2012.The horizontal analysis is important for the following reasons; enables to assess the general performance of the Ford Motor Company. In addition, it will help in evaluating the increases and decreases of items in the financial statements. Horizontal analysis assists in examining if the management is realizing the set goals and objectives (Williams, 2008). Finally, the horizontal analysis will disclose the trends of items in the balance sheet and the income statement.Horizontal Analysis of the In come Statement for Ford Motor Corporation (In $ Millions)ItemDec 2012 Dec 2011 Change % Change Revenues 126, 567 128, 168 -1601 -1.25% ExpensesCost of Sales 112,578 113, 345 -767 -0.67% Selling, Administrative and other Expenses 9,006 9060 -54 -0.60% Total Expenses 121, 584 122,405 -821 -0.67%Interest Expense 713 817 -104 -12.73% Interest Income and Other Income 1185 825 360 43.64% Equity in Net Income 555 479 76 15.87% Income before Income Taxes 6010 6250 -240 -3.84%Horizontal Analysis of the Income Statement for Ford Motor Corporation (In $ Millions)Item Dec 2011 Dec 2010 Change % Change Revenues 128, 168 119,280 8,888 7.45% ExpensesCost of Sales 113, 345 104,451 8,894 8.51% Selling, Administrative and other Expenses 9060 9040 20 0.22%Total Expenses 122,405 113, 491 8914 7.85% Interest Expense 817 1807 -990 -54.79%Interest Income and Other Income 825 -362 1187 -327.9% Equity in Net Income 479 526 -47 -8.94% Income before Income Taxes 6250 4146 2104 50.75%Negative and Positive Tren ds in Ford Corporation From the Income Statement horizontal analysis between 2012 and 2011, the company exhibits negative trends in the total expenses, revenues, cost of sales, selling administrative and other expenses, interest expense and income before taxes. The positive trends in 2012/2011 include equity in net income and in interest income and other income. From the income statement horizontal analysis between 2011and 2010, the company exhibits positive trends in the total expenses, cost of sales, selling and administrative expenses and income before income taxes. The negative trends in the 2011/2010 include; interest expenses, interest income and other income and equity in net income.2012/2011 Horizontal Analysis of the Consolidated Balance Sheet for Ford Motor Company (In $ Millions) Item Dec2012 Dec2011 Change % Change ASSETSCash and Cash Equivalents 15,659 17,148 -1,489 -8.68% Marketable Securities 20,284 18,618 1,666 8.95% Finance Receivables 71,510 69,976 1534 2.19% Other Receivables 10,828 8,565 2263 26.42% Net Investments in Operating Leases 16,451 12,838 3613 28.14% Inventories 7,362 5,901 1,461 24.76% Equity in Net Assets 3,246 2,936 310 10.56%Deferred income taxes 15,185 15,125 60 0.4% Other Assets 5,000 4,770 230 4.82% Total Current Assets 165,525 155,877 9,648 6.18% Net intangible Assets 87 100 -13 -13%Net Property 24,942 22,371 2,571 11.49% Total Assets 190,554 178,348 12,206 6.84%LIABILITIESPayables 19,308 17,724 1,584 8.94% Accrued Liabilities 49,407 45,369 1,038 2.29% Short Term Debt 1386 1033 353 34.17%Deferred Income taxes 470 696 -226 -32.47 Total Current Liabilities 70,571 64,822 5,749 8.87% Long Term Debt 103,672 98,455 5,217 5.3% Total Liabilities 174,243 163,277 11,966 7.33%Redeemable noncontrolling Interest 322 _ _ _EQUITYCapital StockCommon Stock, par value $0.01 per share 39 37 2 5.41% Class B Stock, par value $0.01 per share 1 1 _ _ Capital in Excess of par value of stock 20,976 20,905 71 0.34% Retained Earnings 18,077 12,985 5 ,092 39.21 Accumulated other comprehensive inc. (22,854) (18,734) -4,120 22% Treasury Stock (292) (166) -126 75.9% Total equity to Ford Motor Company 15,947 15,028 919 6.12%Equitable to noncontrolling interests 42 43 -1 2.32% Total Equity 15,989 15,071 918 6.09% Total Liabilities and Equity 190,554 178,348 12,206 6.85%2011/2010 Horizontal Analysis of the Consolidated Balance Sheet for Ford Motor Company (In $ Millions) ItemDec2011 Dec 2010 Change % Change ASSETSCash and Cash Equivalents 17,148 14,805 2,343 15.83% Marketable Securities 18,618 20,765 -2,147 -10.34%Finance Receivables 69,976 70,070 -94 -0.13% Other Receivables 8,565 7,388 1,177 15.93%Net Investments in Operating Leases 12,838 11,675 1,163 9.96% Inventories 5,901 5,917 -16 -0.27% Equity in Net Assets 2,936 2,569 367 14.29Deferred income taxes 15,125 2,003 13,122 655% Other Assets 4,770 6,214 -1,444 -23.24Total Current Assets 155,877 141,406 14,471 10.23% Net intangible Assets 100 102 -2 -1.96% Net Property 22,371 23,179 -808 -3.49% Total Assets 178,348 164,687 13,661 8.29%LIABILITIESPayables 17,724 16,362 1,362 8.34% Accrued Liabilities 45,369 43,844 1,525 3.48% Short Term Debt 1033 2049 -1,016 -49.59% Deferred Income taxes 696 1,135 -439 -38.68% Total Current Liabilities 64,822 63,390 1,432 2.24% Long Term Debt 98,455 101,939 -3,484 -3.42% Total Liabilities 163,277 165,329 -2,052 -1.24%Redeemable noncontrolling Interest _ _ _ _EQUITYCapital StockCommon Stock, par value $0.01 per share 37 37 _ _ Class B Stock, par value $0.01 per share 1 1 _ _ Capital in Excess of par value of stock 20,905 20,803 102 0.05% Retained Earnings 12,985 (7,038) 20,023 -284.5%Accumulated other comprehensive inc. (18,734) (14,313) -4,421 30.89% Treasury Stock (166) (163) -3 1.84% Total equity to Ford Motor Company 15,028 (673) 15,701 -2332.99%Equitable to noncontrolling interests 43 31 18 38.71% Total Equity 15,071 (642) 15,713 -2,447.5% Total Liabilities and Equity 178,348 164,687 13,661 8.29%Negative and Positive Trends in Ford Corporation From the balance sheet horizontal analysis between 2012 and 2011, the company exhibits positive trends in the total current assets, total assets, total current liabilities, total liabilities, total equity and total liabilities and equity. From the balance sheet horizontal analysis between 2011and 2010, the company exhibits positive trends in the total current assets, total assets, total current liabilities, and total liabilities and equity. The company however depicts negative trends in the total liabilities and total equity.Ratio Analysis Current Ratio: This financial ratio is derived from the balance sheet financial and is used to measures of a company’s liquidity performance .This ratio assists in determining whether the current assets are readily available in order to pay off the current liabilities (Bodie, 2004). The current liabilities are cash and cash equivalents, accounts receivables, inventory and marketable securities. The current liabilities i nclude accrued expenses, accounts payables, short term debt, taxes and notes payables (Groppelli, 2000). The 2:1 ratio is the typically suitable current ratio. It is evaluated by dividing the current assets by the current liabilities: Current Ratio = Current Assets/Current Liabilities Current Ratio 2012 =(15,659+20,284+71,150+10,828+16,451+7362+3,246+15,185+5,000) / (19,308+ 49,407+1,386+470) = (162,525)/ (70,571) = 2.3 The 2012 current ratio for Ford Motor Corporation is commendable since it is slightly more than the conventional 2:1 ratio. Current Ratio 2011 = (17,148+18,618+69,976+8565+12,838+5901+2936+15125+4770) / (17,724+45,369+1,033+696) = (155,877)/ (64,822) = 2.4The 2011 current ratio for Ford Motor Corporation is recommendable since it is slightly more than the conventional 2:1 ratio. This means that Ford’s current assets are readily available in paying off current liabilities. Quick Ratio: This is a rather enhanced method to evaluate for liquidity since it does not include inventories from current assets. This is due to the reason inventories may be obsolete, harmed and at times stolen. This ratio reveals the ability of a firm is able to meet its short-term goals from its liquid assets (Groppelli, 2000). The suggested target for the quick-ratio is 1:1 and it is evaluated as: Quick Ratio = (Current Assets – Inventories or Stocks)/ Current Liabilities QuickRatio2012 = (15,659+20,284+71,150+10,828+16,451+3,246+15,185+5,000) / (19,308+ 49,407+1,386+470) = (165,525 – 7,362)/ 70,571= 2.24Quick R atio2011 = (17,148+18,618+69,976+8565+12,838+2936+15125+4770) / (17,724+45,369+1,033+696) = (155,877 – 5,901)/ 64,822= 2.31The 2011and 2012 Quick ratios for Ford Motor Corporation are commendable since they exceed the conventional 1:1 ratio. This therefore means that Ford Motor Corporation is able to meet its short-term objectives. Cash Ratio: This ratio assists in determining the company's liquidity by further refining the current ratio and the quick ratio (Bodie,2004). This ratio is evaluated by calculating the quantity of cash and cash equivalents or invested funds that are in the current assets to cover current liabilities (Groppelli, 2000). It is calculated using the following formula; Cash Ratio= (Cash+ Cash Equivalents+ Invested Funds)/ Current Liabilities CashRatio2012= (15,659+20,284+71,150+10,828+16,451) / (19,308+ 49,407+1,386+470) = (134,372)/ 70,571= 1.9Cash Ratio2011 = (17,148+18,618+69,976+8565+12,838) / (17,724+45,369+1,033+696) = (127,415)/ (64,822)=1.96The a bove Cash Ratio results for 2012 and 2011 reveal that Ford Corporation is able to settle its current liabilities by use of its Cash and Cash equivalents only.Recommendation Any investor willing to invest in Ford Motor Corporation should move ahead and invest in the company. The company’s financial strength as depicted by the financial ratios reveals that the company is able to meet its shot term obligations. This is because the liquidity ratios reveal that the company’s current assets are able to pay off the current liabilities.

How many jelly beans are in a jar

Setting up the paradigm. How do we know there is a God? If anything exists there is a God because you cannot create something from nothing. There had to be an initial force to set the universe into motion. Einstein refers to this force as â€Å"the cosmological constant†. This constant corrected Einstein theory of relativity to explain the movement of the universe. Originally Einstein believed that the universe was static even though his mathematical theories suggested otherwise. It was not until another mathematicianFriedman, solved Einsteinium's equation of general relativity using the cosmological constant. Einstein referred to this mistake as being the â€Å"biggest blunder† of his life. As a human how would I recognize God even if he came and revealed himself to me. For all I know the other worldly being could be Satan. (He is described in the bible as being a beautiful angel) If I could not even recognize God in his presence what hope do I have of finding any dire ction In life. How do we know what is important. Ask enough people. (Belief in a meaning of life)How do we know that we are good.If being good is so important how do we define â€Å"good†. (So we know what it Is that we are trying to do) Being good. How can you remove evil without being evil yourself. The importance of evil and good existing at the same time. (Creates the great struggle) The misconception of trying to â€Å"faith† our way Into heaven. (Why Baptists and Big Bang Atheists are essentially the same) Why should the meaning of life be so hard to find that we have to use faith to explain It. Association between wealth and power. Wealth allows you to have power over another mans will.Any time you arches something with money you are taking something that many people want and deciding that you deserve It for yourself. Wealth allows you to take a larger share for yourself. (Jesus and the rich man) God exists In the â€Å"permanent state of being† (a state of being outside of time where no change occurs), In this realm of existence evil has been abolished by God. So In order to enter this state we also must be free of the evil within ourselves. God Is a being outside of time and Is the perfect embodiment of good. For everything to be good In God's state of being that means evil has to be removed. It Is a requirement.

Masculinity vs. Femininity

Masculinity vs. Femininity Geert Hofstede Here you can see four persons, three of them are adults and the other one is a student. One of the adult seems to be the principal of a school, the other two seem to be the parents of that student. Those people are in a room, which seems to be the bureau f the principal since the sign on the door says â€Å"principal†. The reason why the parents of the student and the principal meet is because the student is not good in school. The principal is about to tell them their son will fail the third grade.Then the father says that he doesn’t understand why his son is so bad in school, and asks what they, himself and his wife, did wrong. The wife answers then that her husband is the one that owns a gun. Therefore you can say that the reason why the student is so bad is due to â€Å"family problems†: His father having a gun. The way the wife says â€Å"You’re the one that owns the gun† seems as if the father uses his gun as a warning, this could lead to fear of the son and this would affect the son’s results in school.In this picture you can say that the father has the power in the family especially showed by him owning a gun, and the mother and wife is only his subordinate. That is why this picture is an example for the masculinity versus femininity by Hofstede’s model. This dimension indicates the extent to which dominant values in a society tend to be assertive and look more interested in things than in concerning for people and the quality of life. â€Å"Masculinity is the opposite of femininity; together, they form one of the dimensions of national cultures.Masculinity stands for a society in which social gender roles are dearly distinct: men are supposed to be more modest, tender, and concerned with the quality of life. † (Source: Hofstede, page 262) â€Å"Femininity stands for a society where gender roles overlap: both men and women are supposed to be modest, tender and concerned with the quality of life. † (Hofstede, page 261) The Masculinity and Femininity dimension describes how cultures differentiate between gender roles. Masculine cultures tend to be ambitious and need to surpass.Members of these cultures have a tendency to polarize and consider big and fast to be beautiful. In workplaces employees emphasize their work to a great extent and they admire achievers who accomplished their tasks. Feminine cultures consider quality of life and helping others to fulfill theirselves and help others to achieve their goals . Working is basically to earn money which is necessary for living. In business as well as in private life they strive for consensus and develop sympathy for people who are in trouble.

A Zara Supply Chain Strategy

A Zara Supply Chain Strategy The theoretical scope of this literature review is distributed by purchasing strategy and by supply chain strategy prospective. This part of the literature is founded on the Internet and from the articles in the Burch International University library. Through searching for the adequate information’s, definitions, articles, journals etc; research was being executed with the keywords such as purchasing strategy or supply chain strategy or management or just Zara supply chain management. There are different data’s, articles and web sites that were funded by the Internet about the Zara, and all offers different ideas of the research direction. In order to collect lot of useful and accurate material of Zara, I obtain from friend who works as a seller manager in Azel store. A Zara supply chain strategy was the key term of my research and was an important part of my theoretical focus on supply chain strategy. The aim of this research is to give a clear picture of the theoreti cal research and to be able to manage analysis of the Zara case study showing how company purchase and which supply chain strategy perspective is the most convenient for such a company. The purpose of use of review in this research is based on the explaining and verifying the role and impact of purchasing and supply chain strategy of the Zara industry and how it’s making successful. The effects of supply are particularly fundamental in fashion industries of marketing research. Although through this review also it will be described different aspects of supply chain points in the fast fashion industry. INTRODUCTION This review however will be based on the two sections; describing and analyzing the structure of the Zara’s stores and on understanding the influence of purchasing of supply chain strategies. The manufacturing ZARA clothing company has an excellent development of supply chain, practical and innovative distribution channel processes. Brief description of supply chain management In usual supply chain management (SCM) is studied issue in marketing practices and theories as well. â€Å"Supply chain management is a set of approaches utilized to efficiently integrate suppliers, manufacturers, warehouses, and stores, so that merchandise is produced and distributed at the right quantities, to the right locations, and at the right time, in order to minimize system wide costs while satisfying service level requirements.† The supply chain management is the active management of supply chain activities to maximize customer value and achieve a sustainable competitive advantage. It represents a conscious effort by the supply chain firms to develop and run supply chains in the most effective & efficient ways possible. Supply chain activities cover everything from product development, sourcing, production, and logistics, as well as the information systems needed to coordinate these activities. The organizations that make up the supply chain are â €Å"linked† together through physical flows and information flows. Physical flows involve the transformation, movement, and storage of goods and materials. They are the most visible piece of the supply chain. But just as important are information flows. Information flows allow the various supply chain partners to coordinate their long-term plans, and to control the day-to-day flow of goods and material up and down the supply chain.

Alcohol Abuse Essay Example | Topics and Well Written Essays - 500 words

Alcohol Abuse - Essay Example The marital conflict is common in the family where alcohol is abused. Conflicts arise due to mismatching of goals and aspirations. The spouse of the person who abuses alcohol feels like isolated. Initially, dialogues between them generate small trifles but soon take a shape of major conflicts. A person with alcohol abuse becomes less and less tolerant toward other family members and resorts to violence frequently. Often, children suffer most. Aggressive behavior becomes routine. If the person with alcohol abuse does not realize this in time, marital relationship may be broken off completely (Alcohol Problems in Intimate Relationships 2003). Alcohol abuse causes strain in social relationships too. Such persons often fail to act on its obligations as per the normal adult. The person becomes socially less active and feels more secured in their alcohol consumption. Any socialization process is strengthened through mutual cooperation and communication but that falls back with the person involved with alcohol. Apart from violence, other issues that start surfacing in the life of a person who indulges into alcohol abuse are economic insecurity, jealousy, infidelity culminating into divorce (Alcohol Problems in Intimate Relationships 2003). Past experience has a significant impact on the current behavior. Widom et al. (2001) cites about the study done by Ireland and Widom on 908 children with legally proved abuse and another group of 667 children without any abusive histories. The study was to find out whether childhood victimization was resulting into alcohol related abuse during adult age. The study did conclude that in case of females alcohol abuse during adult age was related to the childhood victimization; however, same study also concluded that childhood victimization in case of males was not causing alcohol or other drug abuse. A follow up study also came to the same conclusion. The authors further argue that physical or sexual

What does the future hold for stem cells in relation to tissue Essay

What does the future hold for stem cells in relation to tissue engineering - Essay Example Stem cell researchers have in the recent past been involved in elucidating the effects of mechanical factors in tissue generation and engineering with regards to stem cell biology, especially as this field is still poorly understood (Pavlovic & BaÃŒ lint, 2013: p7). Stem cells possess immense potential in the field of tissue engineering. Potential hopes for future regeneration of damaged or diseased tissue are partially dependent on the use of various intricate combinations of stem cells with growth factors and scaffolds (Pavlovic & BaÃŒ lint, 2013: p61). In order to mimic the natural development of tissue in the lab, researchers require appropriate topographical and biochemical cues in a manner that is spatially controlled. Therefore, the future of stem cells in tissue engineering is dependent on the use of nano-technology, in this case nano-topography, in order to influence the behavior of cells. This includes various behaviors like proliferation, attachment, and differentiation that play vital roles in engineering of tissues. Majority of the research into stem cells and tissue engineering is currently focused on biochemical and biomechanical signals and cell adhesion and how these cooperate to enable tissues, cells, and organisms to adapt t o changes within the environment. In the future, it is possible that mechanical forces like mechano-sensing, cell matrix adhesions, cell-cell adhesions, and cell proliferation can be controlled using nano and micro-fabrication tools (Pavlovic & BaÃŒ lint, 2013: p62). This will allow researchers to understand the manner in which these processes enable cells to respond to their environment. Stem cells also have the potential to allow cellular nucleus control, which will be essential in tissue engineering. The size and morphology of the cell nucleus has emerged as a potential genome function mechanistic regulator, which means that it is a crucial

Explain the significance of Hamlet hecuba speech Essay

Explain the significance of Hamlet hecuba speech - Essay Example The significance of this monologue is in expressing the thought of Shakespeare, that the world is theatre, and all people are actors in it. 'World-theater' metaphor is the core of the whole Shakespeare's work. This monologue does not separate him with the First actor, but only makes them closer. It is based on the plot, which is far from being familiar to the English audience of XVII century, and can be supposed the most emotional of all tragedy. By asking 'What's Hecuba to him' Hamlet implies the whole story, taking place in the Danish kingdom, and this question makes Hamlet stand further away from the reader and from himself, making him the commentator of his own story. This monologue is the means of discovering the deep sense of tragedy - the metaphor 'theater-world' and to trace, how sophisticated is the transition from one reality into another. The significance of Hamlet Hecuba speech is in being the principal Shakespeare's means of showing the implications and thoughts of the tragedy. The work is abundant in parallels and comparisons of the reality with the theater. Thus, the significance of the described speech in making this plot line evident can be subjected to no argument.