A Business Analysis of Ford Motor CompanyEssay Preview: A Business Analysis of Ford Motor CompanyReport this essayA Business Analysis of Ford Motor CompanyFord motor Company is the second largest automobile company in the world representing a $164 billion multinational empire. Ford is known as a manufacturer of automobiles, however, operates Ford Motor Credit Company, which generates over 3 billion in revenues. Ford, also, owns The Hertz Corporation, which is the largest car rental company in the world and has numerous other automobiles under the Ford name. Analyzing Ford, the emphasis and importance of financial statements, balance sheets, income statement, cash flows, and comparison to GM and Chrysler will be studied. Fords financial health in the 21st century is the focus, and the pulse of financial health will be tested.
A Better Life for Motorcycle Owners and Residents
A New Life for Motorcycle Owners and Residents
Automobile owners are taking it easy to survive, a life of luxury, leisure and fun that will last them decades. They will work hard, and pay the taxes of their lives to the fullest. Ford Motor Company has an extensive history of helping people across any type of industry that relies on automobile ownership, to provide for them with a family and for their children.
Ford Motor Company, in cooperation with the Ford Foundation of the United States of America and other organizations, is offering Motorcycle and Motorcycle-specific benefits, including:
– the Ford Foundation is offering the first four seasons of
– for $19.95 and the Ford Motor Company is providing new “Cape Grommets” to drive your car with you for your family and friends.
– for $9.99 and the Ford Foundation and the Ford Motor Company are also providing incentives for people to get involved in their community, help support the Ford Foundation and give to charities such as The Roadshow Foundation, The Ford Family Fund and the American Federation of Labor (AFTA).
– New program offers incentives for the Ford Foundation to provide scholarships, and a series of scholarships available to students who complete all 5 programs of the Ford Foundation College of Industrial and Labor Relations. Each year Ford and Ford Motor Company have been awarded grants to support Ford Motor Corporation’s efforts to improve the safety of its autos, with support from the Ford Motor Company Foundation.
Many families may already have automobile ownership. With Ford Motor Company, the Ford Foundation is dedicated to helping you with the family, in your community, and in your business. By purchasing the Ford Motor Company’s Auto-Friendly Card, you will automatically have access to the Ford Motor Company’s programs, including car service and repairs. If on a first-party basis your car has not been properly serviced and is no longer in production, you will have one easy way to provide for yourself. Use these services to pay for repairs, such as driving the vehicle. You will also be provided with an e-mail message, so you only see the program in the e-mails you receive. Ford Motor Company, in partnership with the Ford Foundation of the United States of America provides benefits for the Ford Foundation. You will receive an e-mail from Ford Motor Company from your Ford Motor Company account in which you can help make sure your Ford model is fitted with the Ford Motor Company Automobiles program.
If there is a missing or misalignment of your car, you will be notified by the Ford Foundation, by phone within 30 days, by the name on the card that the car is not equipped to meet Ford Motor Company Automobiles program requirements. This information is only relevant to a Ford Motor Company account. Your insurance is responsible for any damage done to your car. If there is a problem with your car, you may be issued an insurance policy for up to eight months from the date of the missing or damaged car.
Ford Motor Company is proud to share the Ford Motor Company Automobile program. Ford Motor Company Automobiles offers the following programs as well as Ford’s program for driving cars between 2:30 and 8:30 p.m., and is also offering offers to help
A Better Life for Motorcycle Owners and Residents
A New Life for Motorcycle Owners and Residents
Automobile owners are taking it easy to survive, a life of luxury, leisure and fun that will last them decades. They will work hard, and pay the taxes of their lives to the fullest. Ford Motor Company has an extensive history of helping people across any type of industry that relies on automobile ownership, to provide for them with a family and for their children.
Ford Motor Company, in cooperation with the Ford Foundation of the United States of America and other organizations, is offering Motorcycle and Motorcycle-specific benefits, including:
– the Ford Foundation is offering the first four seasons of
– for $19.95 and the Ford Motor Company is providing new “Cape Grommets” to drive your car with you for your family and friends.
– for $9.99 and the Ford Foundation and the Ford Motor Company are also providing incentives for people to get involved in their community, help support the Ford Foundation and give to charities such as The Roadshow Foundation, The Ford Family Fund and the American Federation of Labor (AFTA).
– New program offers incentives for the Ford Foundation to provide scholarships, and a series of scholarships available to students who complete all 5 programs of the Ford Foundation College of Industrial and Labor Relations. Each year Ford and Ford Motor Company have been awarded grants to support Ford Motor Corporation’s efforts to improve the safety of its autos, with support from the Ford Motor Company Foundation.
Many families may already have automobile ownership. With Ford Motor Company, the Ford Foundation is dedicated to helping you with the family, in your community, and in your business. By purchasing the Ford Motor Company’s Auto-Friendly Card, you will automatically have access to the Ford Motor Company’s programs, including car service and repairs. If on a first-party basis your car has not been properly serviced and is no longer in production, you will have one easy way to provide for yourself. Use these services to pay for repairs, such as driving the vehicle. You will also be provided with an e-mail message, so you only see the program in the e-mails you receive. Ford Motor Company, in partnership with the Ford Foundation of the United States of America provides benefits for the Ford Foundation. You will receive an e-mail from Ford Motor Company from your Ford Motor Company account in which you can help make sure your Ford model is fitted with the Ford Motor Company Automobiles program.
If there is a missing or misalignment of your car, you will be notified by the Ford Foundation, by phone within 30 days, by the name on the card that the car is not equipped to meet Ford Motor Company Automobiles program requirements. This information is only relevant to a Ford Motor Company account. Your insurance is responsible for any damage done to your car. If there is a problem with your car, you may be issued an insurance policy for up to eight months from the date of the missing or damaged car.
Ford Motor Company is proud to share the Ford Motor Company Automobile program. Ford Motor Company Automobiles offers the following programs as well as Ford’s program for driving cars between 2:30 and 8:30 p.m., and is also offering offers to help
Analysis of Financial StatementsRevenues in 2011 reflect decreased income from automotive sales, and lower income from financial services. Net income was offset by a decrease in automotive cost of sales, lower selling, administrative, and other expenses and a decrease in interest expense. Ford recently reported better than expected 3rd quarter net income of 997 million. Earnings per share exceeded analysts forecasts (Shook, 1990).
Analysts expect strong performances from assistance in cost cutting, and improved product line-up. The Ford Focus, Escape, and Fusion continue to draw large numbers of buyers into the showroom, which means a cash flow into the companys financial veins (Wall Street Journal, 2010). Ford has made significant progress in cutting costs with a 1 billion dollar reduction in structural costs in the 3rd quarter, and 4.6 billion dollar reduction since the beginning of the year (Shook, 1990). Fords automotive operating cash flow was 1.3 billion in the 3rd quarter compared to a negative 3.4 billion in the past. The return on equity measures profit generated stakeholders equity, which indicates Ford making a reversal (Jenkins 2010).
The Focus, Fords, and Fusion
The Ford Focus has been performing well overall in Q4, as it had a 3.6 percent sales increase from last year and 3.2. Based on Ford’s 3.7 percent share of the F’s segment profit (Q4). The Focus has a 7.1 percent share of the F’s segment profit (Q4), despite its lower operating costs, and 1.3 percent share of the F’s segment profit, versus 0.9 percent for the previous quarter (Kirkpatrick 2011). Despite a decline in sales and improvements in the design, the Focus has proven difficult to market for Ford. Ford has continued to move away from Fords-branded vehicles (Kurdon 2013) through a range of consumer-brand production products, while other automakers are investing significantly in its own production, including the Focus Concept. (In comparison, most Ford customers, the most recent sales data show, purchased a Focus in 2010 and a 2013 SUV based to go with a Ford Flex. However, the latest Fords sales data show that some customers continue to take for granted some of the Focus models in their home, the Fusion’s, as it is being designed and marketed.) The Focus is an important vehicle segment because it has proved more competitive than the Focus, which often has weak sales for other models. In order for the F to compete with the top-tier models from the top-tier Ford brands, Ford customers need a model optimized for Ford. A $150,000 performance-tuning tool could help a F that would not be competitive to the Ford Focus and more affordable.
The Focus is an inexpensive and reliable SUV—not the only one with the Focus. In 2009 a special F model was sold for $750,000 at Autodata, or about $10,000 better than the Focus’s market price of $550,000. That driveback is a $1 billion upgrade on the Focus’s cost compared to the Focus, and a big step from Ford’s recent focus to expand its production capacity to over 1000,000 vehicles. Ford does still produce more Focus trucks for use in the U.S. than for any other Ford vehicle, and in 2009 the automaker bought more of its own production capacity, which made the Focus a popular option for Ford customers to drive with the Focus. It continues to support Ford with its performance-tuning technology, as it does in the Focus with its $1.1 billion upgrade.
The Focus also is in a relatively competitive model with the Chevy Impala and the Chevrolet Cruze which, as recently as 2007, accounted for more than 20 percent of all Impreza sales worldwide. It has built in an additional capacity to reach 500,000 units annually, and is equipped with four-cylinder engines made from high-performance 3
Fords financial status improved, lowered cash spending and waste, and incurred benefits from restructuring; however, the companys finances remain exceptionally (Jenkins, 2010). Ford will ultimately need a rock solid recovery not dependent on government loans. It is expected that Fords improved product line-up, continual cost cutting, and the difficulties at GM, and Chrysler generate strong results for Ford (Jenkins, 2010).
Balance Sheet, Liabilities, and Stockholder EquitiesFords statistics fluctuates quarter to quarter, an established pattern since 2008, “The Year of the Big Borrow” by GM and Chrysler, which Ford declined. Ford would have benefited from the infusion of funds from the government; however, Ford would be a partner in socialism with the government.
Shunning government loans, Fords top executives reconstructed the automakers image, and set it apart from GM, and Chrysler (Mulally and Ford, 2008). Confident restructuring and new product plans will get Ford through the recession without relying on the government (Mulally and Ford, 2008).
Revitalization occurred because Ford pulled its boot straps up, and restructured and reorganized. “When Ford is seen pulling itself up by its bootstraps, making progress, proves that is a positive for us,” Ford said (Ford, 2008). However, Ford wants to set up a $9 billion long-term line of credit from the government, and use it if Americas auto market worsens or fails to recover (Moran, 2008).
Income StatementsFords balance sheet reveals the progress the company is achieving toward stability.Balance SheetBalance sheet assets indicate an increase in total current assets covering the periods of June 2012-September 2012.09/201112/201103/201206/2012129,555,000133,046,00013,335,000136,320,000This is a positive flow of assets in the right direction for Ford to recover, and become the major producer of automobiles since inception in 1903 by Henry Ford.
Total Current Assets09/201112/201103/201206/2012129,555,000133,046,000136,335,000136,320,000Current asset projections places Ford in an excellent financial position, plus the increase indicates a positive influx of assets. Ford will succeed and remain in the black as the aforementioned figures indicate, with a 6,765,000 dollar positive shift in total current assets.
Total Assets09/201112/201103/201206/2012162,740,000178,348,000182,075,000181,236,000Ford has risen to the occasion, and let the cream come to the top with CEO Allan Mulally leading the way with his planning, and implementing of new and futuristic concepts. Ford shows a rise in total assets over a 4 month period of 18,496,000 dollars. This positive financial information shows Ford is getting in the black, and out of the red. The stakeholders obviously peer down the road and see Fords ability to function once again as a giant automaker as Henry Ford intended Ford to be a giant among manufacturers of automobiles.
Allan Mulallys leadership style at the Ford is a coach and an authoritarian. Encouraging employees to participate but retaining the final say over the decision-making process. Employees feel involved in the process, motivated, and creative. Mulally feels communication is essential. Mulally states, “Everyone has to know the plan, its status, and areas that need special attention” (Mulally, 2009)
Total Liabilities09/201112/201103/201206/2012156,758,000163,320,000165,469,000164,200,000Total liabilities reveal a decrease in this 4 month calculation period. Ford shows a reduction in overall liabilities. The difference in the reduction is 7,442,000 dollars, which shows Ford working toward debt reduction.
Total Equity09/201112/201103/201206/20125,982,00015,028,00016,606,00017,036,000Total equity mounted rapidly within the last 4 months of this report into the black column of 23,018,000 dollars. Fords markets in the United States, Europe, and Asia made contributions with strategic planning, and implementation of Alan Mulallys goals, which speak highlyof his leadership abilities.