An enormous manufacturing base of cars and large scale administration was initiated by the company by use of a clearly developed manufacturing series exemplified by a non-stationary line of assembly. By 1914 the methods came to be known as Fordism. In 2008, Tata Motors of India bought Ford’s earlier UK’s branches Land Rover and Jaguar. Starting 1999 to 2010 Ford had in its ownership the Swedish automaker Volvo (Wallace, 2003). Financial Ratios Analysis liquidity ratios 2010 2011 current ratios 0.855917595 0.955290702 Acid test Ratios 0.474514453 0.586053149 Activity ratios Total Asset turnover 0.783024768 0.76403436 Inventory Turnover 17.65269562 19.2077614 No. of days Sales In A/R 0.001305108 0.576388481 No of Days Sales in inventory 0.000155202 0.052062288 Profitability ratios Gross profit Margin 0.190013493 0.168195562 Operating Profit Margin 0.050847589 0.1484031 Net profit Margin -0.005218915 0.110285916 Earnings Per share -0.176362683 3.938155136 Return on Assets -0.00408654 0.084262229 Return on common Equity 1.048286604 0.997146838 Debt Ratios Debt Ratios 1.003898304 0.915496669 Times Interest earned 1.162061118 1.959151433 Market Ratios Price per earning ratio 0.001834862 0.001824818 Dividend yield 0 153 Dividend Payout Ratios 0 0.27919708 See the attached excel spreadsheet Liquidity Ratios The liquidity ratios calculated for the year 2010 and 2011 are shown in the table above. The calculations are on the excel spreadsheet attached. Liquidity ratios show the firm’s ability to settle short term liabilities out of the liquid cash. The type of liquidity ratios calculated include; current ratio and acid test ratio. The liquidity ratios must equal to 1 or more than 1. If it is 1.00 then it implies the short-term debts are fully settled with the liquid cash. If they are less than 1.00 then it shows that the available cash cannot settle the arising short term liabilities. From the calculations Ford Motor Company has a current ratio of 0.86 in 2010 which improved to 0.96 in 2011. Though there was an improvement in the current ratio, it is still less than one which shows the company’s dilemma in dealing with its short term debts. The available cash is not enough to settle the short term liabilities (Zane, Kane & Marcus, 2004). The acid test ratio as depicted from the calculations is also worth of discussion. In both years the acid test ratio was less than 1 which might be detrimental to the Ford Motor Firm. Though an improvement was noted from 0.47 to 0.59, the ratio was still below the threshold. Activity Ratios Activity ratios depict the degree of effectiveness of a company in using the resources available in a manner that can promote the growth of the company. The activity ratios derived above are total asset turnover which dropped from 0.78 to 0.76. This is an indication that the assets of the company were not utilized in a way that could realize enough returns. On the other hand the inventory turnover increased from 17.65 times to 19.20 times. This shows that the inventory of the firm was utilized effectively in raising good returns on the sales on the firm. Number of days in sales of A/R increased from 0.0013 to 0.58. This depicts that the collection period for the receivables increased from 2010 towards 2011. This is too risky for the firm as the company can end up being indebted by its customers. Lastly in regard to the number of days in s
Ford Motor Company (Thorough Analysis) Name of Instructor Name of Institution Ford Motor Company Background Ford Motor Company is a multinational automotive manufacturer based in America. Its headquarters are in Dearborn, Michigan in the suburb of Detroit…
Ford Motor Company (Ford) is touted in amongst the largest automobile manufacturers’ world over. The company owns brands like Ford, Lincoln, Mazda, Mercury and Volvo, is present in six continents round the globe and has its presence in 200 countries. Here we analyze some of the strengths and weaknesses of the company The Strengths of the Ford Ford has a very strong brand portfolio from which it draws most of its competive advantage.
According to the study there are new challenges in the IT department of Ford Motor Company every year. According to the company’s mission statement, “Our customers, clients, suppliers, partners, employees, and stakeholders say, without hesitation, that Information Technology is a critical and competitive differentiator for Ford Motor Company.
For this purpose, it is important to measure customer satisfaction on regular basis in order to understand their needs, wants and demands so that final product can be developed that not only gives maximum value to the customers but also helps in realizing valuable profits.
Introduction Ford Motor Company is an American multinational firm and one of the leading automobile companies in the world. The Michigan based company was founded by Henry Ford in the year 1903. It belongs to the Big three of Detroit, namely Ford, General Motors and Chrysler, who dominated the American automobile industry during the 1960s and 1970s.
Ford Motor Company is one such organization that incorporates large volume of innovation into its product lines. The majority of the top rated vehicles all over the world are the contribution of Ford Motors. The secret behind the success Ford Motors is its constant effort to meet the needs of its consumers with new ideas and features.
Ford is one of those companies that belong to the category of large consumer of IT (Allen & Morton, 1994).
Ford Motor Company started a revolution in the manufacturing field when it introduced the mass production assembly lines early in the 20th century.
We hold ourselves to this high standard with pride.” Further, the company states that: “Though our work is with people, our tool is with the computer.” With both of these critical components in mind, and along with the
As the report, Ford Motor Company, declares company’s mission statement is reminiscent of a reflection of its core principle, identity, and values. Ford Motor Company operates its business throughout the world and endows with ‘personal mobility’ for the communities. The company is committed to serve the people with enthusiasm.
Ford Motor Company is a multinational automotive manufacturer based in America. Its headquarters are in Dearborn, Michigan in the suburb of Detroit. The firm was established by Henry Ford and integrated in 1903. The firm markets its automotives under the brands Lincoln and Ford. It also owns shares in the Japanese Mazda and UK’s Aston Martin.
One field that is of great concern is that of automobile. Unlike in the past where there were only few companies manufacturing automobiles, this is not the case anymore. This is because currently there are many nations competing against each other for dominance
3 pages (750 words)Research Paper
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