Company is FORD MOTOR COMPANY
Your task in this assignment is to do an analysis of a publicly traded corporation. Using your internet browser, locate the investor relations webpage of a publicly traded firm that you have an interest in. To access the most current 10-K report, please choose either SEC Filings, Annual Report, or Financials.
Ratio Computation and Interpretation
Regarding the following ratios:
1) What does the ratio measure in general?
2) Calculate the ratio for the most recent three years.
3) What implications do your findings have for the company?
4) If accessible, locate the industry ratio for the latest year, compare it to your findings, and analyze the reasons for the divergence or similarity between your firm and the industry ratio.
Profitability Ratio
Return on Equity
Return on Assets
Gross Profit Margin
Earnings Per Share
Quality of Income
Asset Turnover Ratios
Total Asset Turnover
Fixed Asset Turnover
Receivables Turnover
Inventory Turnover
Liquidity Ratios
Current
Quick
Cash
Solvency Ratios
Times Interest Earned
Cash Coverage
Debt to Equity
Market Ratios
Price/Earnings
Dividend Yield
Prerequisites
Written Report
1) Microsoft Word document with a font size of 12 points, including Excel charts and graphs that are integrated into the document.
2) The text should be written in paragraph style, without using a question and response structure.
3) Title Page
4) Summary and Conclusions
5) Contents
6) Overview
7) Content of your report
a. Omit the display of questions and answers.
b. Present the content in paragraph format.
8) References
9) Supplement
a. Attached is an Excel document that includes formulas.
b. Your worksheets should be able to automatically adapt to changes in assumptions or new financial facts.
Analysis of Investment and Financing Activities
Access the Balance Sheet. Address the following for the most of the year:
1) When was the balance sheet prepared?
2) Which three asset accounts have the largest sizes?
3) What is the percentage of each component in relation to the total assets? The calculation is derived by dividing the value of Asset A by the total value of all assets.
4) Which three liability accounts have the largest size?
5) What is the proportion of each liability to the total liabilities, expressed as a percentage? The formula for calculating the ratio is Liability A divided by Total Liabilities.
6) Are there any notable changes in the shareholders’ equity?
7) Does the company’s investment in assets mostly originate from liabilities or shareholders’ equity?
Access the Statement of Cash Flows. Throughout the majority of the year, please address the following:
1) What are the primary investment activities in terms of monetary magnitude?
2) Did the entire cash flow from investment activities result in a positive or negative value?
3) What are the primary funding activities in terms of monetary value?
4) Did the entire cash flow from financing operations result in a positive or negative value?
May include the insights provided by the Liquidity Ratios on this company’s Investing and Financing Activities.
Analysis of Inventories
What is the percentage of inventory to total assets for each of the last three years, if your firm includes inventories in its balance sheet?
1) If your organization does not include inventory in its financial statements, explain the reasons for this decision.
What inventory costing technique is used for U.S. inventories if your firm includes them in its listings?
1) What factors do you believe influenced this decision?
2) If the firm adopts the LIFO technique, what would be the impact on net income before taxes if it had chosen to employ the FIFO method or a comparable alternative instead?
What impact did the change in inventory have on cash flows from operating operations in the most recent year? Specifically, did the change result in an increase or reduction in operating cash flows? Elaborate on your response.
Analysis of Stockholders’ Equity
Evaluate the financial composition of the company’s capital.
1) Does the corporation exhibit a preference for issuing stock or borrowing?
2) Analyze the notes to the financial statements to uncover any further details on the shareholders’ ownership that would be crucial for someone evaluating the firm as a possible investment.
Analyze the cash flow statement and the shareholders’ equity statement.
1) How much stock, if any, was issued in the last fiscal year?
2) What was the total amount of cash generated by the issue for the company?
What was the mean market value per share of the issuance?
Did the corporation buy back any treasury stock throughout the year?
1) Was it able to be resold?
Did the firm declare any dividends during the year, and if so, what were the sorts of dividends?
1) What was the stated amount for the year?
