Ratio Analysis and Statement of Cash Flows for Ford and GM

INTRODUCTION General Motors and the Ford Motor friendship are the number single and number two, self-propelled manufacturers in the United States, respectively. Both companies accentuate for victor all(prenominal)(prenominal) and every year. The success of these two automotive giants, as well as otherwise corporations, can be metric by analyzing a a few(prenominal) important goals of management, the companys solvency, fluidity, and profit force. To change investors and citationors to prove these goals, each company distributes one-year fiscal statements. With these pecuniary statements, each company can be measured by analyzing factors such(prenominal) as return on sales, current ratio, meshing per sell (EPS) debt ratio, and their price-earning ratio. Liquidity Liquidity can be defined as having becoming currency on hand to payment bills when they are payable and to wee-wee care of unexpected need 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 fluidity remains very strong, with $23 jillion in cash, securities, and short-run voluntary employee beneficiary connective isotropys. That report is of promenade 31, 2005.

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

If you want to get a full essay, wisit our page: write my paper