Fords Financial Analysis

Financial Analysis hybridisation revenue was dropped in 2009, but since therefore it consistently grew. Revenue for the year 2011, 2010, 2009, and 2008 is $136 billion, $128 billion, 116 billion, and 143 billion respectively (Google.Finance, 2011). 1 of the big competitors of track is GM, whose sales exceed Fords sales every year for the past 4 years, pull come on for the year of recession. Since dropped sales in 2009, Ford wasnt fit to trace revenue reached in 2008, while GM did pass that mark in 2011 (Appendix B). This shows the s minorer recovery in the Ford Company since recession, but they have steady growth and substantiating trend in revenue which is the strong aspect of their financials. In terms of profit strand, for the past 4 years Fords ratio on sightly has been 3.05 percent, while the industries average is 6.05 percent. Fords profit leeway is twice littler comp atomic number 18d to its labor. On the other hand, Fords gross margin ratio was higher on average for the past 4 years, compared to its competitors ratio (Appendix A). Such a low profit margin is mostly due to recession, which caused Ford to excrete more than usual to sustain its economical position during losses in sales (Fords Recession Speedway, 2009). Appendix B.

1 shows that the total operate expense in 2009 and 2008 was 98% and 109% respectively, compared to 94% in 2010 and in 2011. Although this is the case of the economic downturn and lower profit margin, theoretically Fords profit margin is higher compared to the patience because the bailout of GM increases the profit margin ratio for the whole industry significantly. Fords profit margin dominates companies profit margin in 2011 and 2010. In 2009, Fords ratio was 2.3 which are lower than the market value. But if to eliminate GMs individual ratio, industry ratio falls below 2.3 (Appendix A.1). non only that it is theoretically ok to eliminate GM bailout out of calculation, but in addition the bailout adds unrealistic income, which is $105 trillion. For 2008,... If you call for to get a full essay, order it on our website: Orderessay

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