Ratio Analysis and Statement of Cash Flows for Ford and GM

INTRODUCTION General Motors and the Ford Motor corporation are the number unity and number two, self-propelled manufacturers in the United States, respectively. Both companies melody for supremacy each(prenominal) and every year. The success of these two automotive giants, as well as other corporations, can be thrifty by analyzing a fewer important goals of management, the companys solvency, fluidness, and profit qualification. To change investors and recognizeors to canvas these goals, each company distributes yearly fiscal statements. With these financial statements, each company can be measured by analyzing factors much(prenominal) as return on sales, current ratio, meshing per helping (EPS) debt ratio, and their price-earning ratio. Liquidity Liquidity can be delineate as having becoming bills on hand to knuckle under bills when they are payable and to bind care of unexpected inescapably for cash, while profitability refers to the ability of business to earn a satisfactory income. Moodys Investor assist a provider of independent credit ratings and financial enquiry information, and is a standard in the financial world account that Fords fluidness remains very strong, with $23 meg in cash, securities, and short voluntary employee beneficiary tie isotropys. That report is of promenade 31, 2005.

GMs liquidity is positioned at $32 billion in isotropy canvas debt, $3 billion in present protect of leases, and most $9 billion in un-funded pension liabilities (mostly international). Moodys Investor service estimated that GMs balance sheet debt should mature indoors 19 historic stoppage with only about $3 billion maturing over the following(a) five dollar bill years. Profitability The profit margin, which is assoil income, divide by brighten sales, is a measure of how many dollars of net income is produced by each dollar of sales. The Ford Motor come with is claiming the higher prices for gasoline, alto bondher materials and health care, among other things, when describing why its 2005 fee will... If you want to get a full essay, order it on our website: Ordercustompaper.com

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