Ford Motor Company
Over the last several years, Ford Motor Company has been through a tremendous amount of challenges. This is because they were adversely impacted by the financial crisis and consumers switching to fuel efficient vehicles. Despite these issues, the firm has continued to adapt and become stronger. However, there are renewed worries that a secondary slowdown in consumer spending could adversely impact the automaker. To fully understand what is happening there will be a focus on the pre-tax operating profits, key financial ratios, strategies to improve performance and how the company's refusal of bailout funds may have impacted their results. Together, these different elements will highlight the current fiscal state of Ford. (Hiraide, 2012)
Based on the most recent quarter pre-tax operating profit, project the profit for the next four (4) quarters assuming that the U.S. economy stays the same as today, declines into a recession and modestly improves. Explain the assumptions made to support your calculations.
If Ford's operating profits remain the same over the next four quarters, they will be down. This means that these figures will come in around $3.63 billion for the first half of the year. Evidence of this can be seen in the below table which is comparing the pre-tax operating profit for the first half of 2012 with the same period in 2011. ("2011 Annual Report," 2012) ("Ford Motor Company 10Q," 2012)
Ford's Pre-Tax Operating Profits for the First Half of 2012 versus 2011
Year
Pre-Tax Operating Profit
2011
$5.32 billion
2012
$3.66 billion
("Ford Motor Company 10Q," 2012)
These figures are showing how the operating profits will more than likely be around $3.60 billion for each half of the year ($7.2 annually). Given that sales have been improving, there is the possibility that these numbers could come in around $8.2 billion. These assumptions are based on combining the pre-tax operating profits together. Then comparing the results with similar periods when the economy was slower (i.e. 2009...
Based on the data presented in the Table 2, it is revealed that Ford is a company that is good for the investment opportunity. The profitability ratios are one of the key ratios to determine the financial health of a company. Based on the data in Table 2, Ford Company demonstrates the increase in the profitability ratios between 2008 and 2011. For example, the ROA increase from the loss of
Nevertheless, the company needs to move on its own as well in a continuous process of internal reform and different approach to the market. It is clear than many of the automobile producers, Ford included, have based so much of their production activity on large vehicles, adapted to the then-necessities of the U.S. market, but nevertheless unsuited for the economic trends that saw high oil prices and an increasing concern
Ford Motor Company Analysis Ford's History, Development and Growth As Ford Motor Company itself proudly declares, "The dream became a business." The inception of Ford is one of the critical steps in the industrialization of America and the West in general. According to Ford's public relations department, "Ford Motor Company entered the business world on June 16, 1903, when Henry Ford and 11 business associates signed the company's articles of incorporation. With
Ford Motor Company Business Analysis Ford Motor Company Ford Motor Company is 4th on Fortune 500 List and 4th on Global 500 List and is the 2nd largest auto manufacturer in the world. Ford Motor Company has the advantage of Ford Motor Credit however, due to Firestone tire recalls the prices are the lowest prices in years with cash reserves sunk to $4.1 billion and $13 billion on acquisitions with $3.5 billion
Ford Motors Company Ford Motor Company is an American Multinational company that was founded by Henry Ford in the year 1903. Ford's headquarter is in Dearborn Michigan in the United States where it specializes in the production of automobiles both commercial and luxury. Under its commercial category of vehicles, it trades under the Ford brand while its luxury cars trade under the Lincoln brand. Ford Motors is a well established company
Ford faces many threats. In terms of operational/strategic threats, the company faces intense competition in all of its markets. There is no product or geography where Ford does not face intense competition. This drives down margins and exposes Ford to the possibility of declining sales. The competitors in the industry are innovating at a rate faster than Ford generally is. This creates new and unique competitive threats. Ford is under
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