Ford Motor Company, a large United States automotive corporation, strives for success each and every year. The success of Ford Motor Company, as well as othercorporations, can be measured by analyzing the two most important goals of management, maintaining adequate liquidity and achieving satisfactory profitability. Liquidity can be defined as havingenough money on hand to pay bills when they are due and to take care of unexpected needs for cash, while profitability refers to the ability of business to earn a satisfactory income. To enable investorsand creditors to analyze these goals, Ford Motor Company distributes annual financial statements.
With these financial statements, liquidity of Ford Motor Company is measured by analyzing factorssuch as working capital, current ratio, quick ratio, receivable turnover, average days' sales uncollected, inventory turnover and average days' inventory on hand; whereas profitability analyzes theprofit margin, asset turnover, return on assets, debt to equity, and return on equity factors.
II. Ford Motor Co. Financial Data
Proceed to open excel file Ford Motor Co Financials to analyze Ford MotorCo. financial performance from 2001 to 2010.
III. Guide questions to analyze the case study, following the case rubric:
1. What are Ford Motor Co’s financial problems from 2001 to 2010?
2. What arethe negative financial trends and the positive financial trends?
3. What kind of financial problems related to what kind of financial ratios?
4. What financial strategies should Ford Motor Co.follow in order to maximize the wealth of the owners?
5. What have been the key factors of success for Ford Motor Co. from 2001 to 2010 financially speaking?
6. What is the present financial health ofFord Motor Co. and its relation with the applied financial strategies from 2001?
CASO FORD MOTOR CO
Ford Motor Company, una gran corporación automotriz Estados Unidos, se...