Loading presentation...

Present Remotely

Send the link below via email or IM

Copy

Present to your audience

Start remote presentation

  • Invited audience members will follow you as you navigate and present
  • People invited to a presentation do not need a Prezi account
  • This link expires 10 minutes after you close the presentation
  • A maximum of 30 users can follow your presentation
  • Learn more about this feature in our knowledge base article

Do you really want to delete this prezi?

Neither you, nor the coeditors you shared it with will be able to recover it again.

DeleteCancel

Make your likes visible on Facebook?

Connect your Facebook account to Prezi and let your likes appear on your timeline.
You can change this under Settings & Account at any time.

No, thanks

Copy of GM and Ford Financial Analysis

No description
by

Mykel Kersnick

on 12 April 2013

Comments (0)

Please log in to add your comment.

Report abuse

Transcript of Copy of GM and Ford Financial Analysis

GM and Ford Financial Analysis Carlee Hartley Mykel Kersnick Miguel A Brief History Trend and Common SIze Analysis Ford GM Ford History Ford was founded in 1903 by Henry Ford.
The Ford assembly line was revolutionary and led to Ford's future successes. By the 1990's, companies like BMW and Land Rover were becoming Ford's. In 2008, in a severe recession, Ford afforded to avoid the federal bailout but produced the worst numbers in company history. Recently FOrd has turned to "Green" alternatives. GM History General Motors is another example of a leading company in automotive sales and production. Uneasy finances of GM lead them into one of the biggest bankruptcies in American history. For the next two years GM would need to participate in the bail out. For a while, costs were high and profits were low, but in recent years GM Motors has been making new waves in the industry. GM has put efforts toward making employees happier with what they have to offer. GM Motors has always had a loud statement of who is the biggest and the best. They have been pushed down a lot these past few years, but each time they have gotten back up with a little more edge. It will be interesting to observe how the company will out do themselves this past year in sales and other aspects of the reconstruction of General Motors. Ford Liquidity Efficiency

Working Capital: 38147-32825= 5322

Current Ratio: 38147/32825= 1.16 to 1

Acid Test: 28046/32825= .85 to 1

Accounts Receivable: 136264/4105.5= 33.19 times

Inventory Turnover: 113345/4105.5= 27.61 times

Days Sales Uncollected: (78541/136264)*365= 210.38 days

Days Sales Inventory: (5901/113345)*365= 19 days

Total Accounts Receivable Turnover: 136264/171517.5= .79 times Ford Solvency

Debt= 163277/ 178348= 91.459%

Debt to Equity= 163277/15071= 10.833 to 1

Equity=15071/178348=8.450%

Times Interest Earned= 8681/4431= 1.959 times Ford Profitability

Profit Margin – Net Income/Net Sales -20213/136264= 14.83%

Gross Margin – Net Sales-COGS/ Net Sales- 22919/136264= 16.82%

Return On Total Assets- Net Income/Avg. Total Assets- 20213/171517.5=11.78%

Return on Common Stock Equity – NI-Preferred Dividends/ Avg Common Stock Equity – 119.9%

Book Value of C/S- Stockholder Equity – common shares/ common shares outstanding- 4.952 Per Share

Basic Earnings per share – NI – Preferred Dividends/ Weighted Avg. Common stock outstanding-$ 10.5 Per Share Ford Market Prospects

Price Earnings Ratio= 10.50/1.02=10.294 times

Dividend Yield= .05/10.5=0.004% GM Liquidity and Efficiency

Working Capital: 60242-48932= 11310

Current Ratio: 60242/48932= 1.23 to 1

Acid Test: 41802/48932= .85 to 1

Accounts Receivable Turnover: 150276/9324= 16.12 times

Inventory Turnover: 144620/9324=15.51 times

Days Sales Uncollected: (9949/150276)*365= 24.16 days

Days Sales Inventory: (14324/144620)*365= 36.15 days

Total Accounts Receivable turnover: 150276/56647.5= 2.65 times GM Solvency

Debt = 105612/144603=73.039%

Debt to equity = 105612/38991 = 2.708 to 1

Equity = 38991/144603 = 26.964%

Times interest earned = 5985/540 = 11.083 times GM Profitability

Profit Margin – Net Income/Net Sales -3192/150276=2..12%

Gross Margin – Net Sales-COGS/ Net Sales- 5656/150276=3.76%

Return On Total Assets- Net Income/Avg. Total Assets- 3192/141750.5=2.25%

Return on Common Stock Equity – NI-Preferred Dividends/ Avg Common Stock Equity – 18.3%

Book Value of C/S- Stockholder Equity – common shares/ common shares outstanding- 23.85 Per Share

Basic Earnings per share – NI – Preferred Dividends/ Weighted Avg. Common stock outstanding- 2328/1536= $151.56 Per Share GM Market Prospects

Price - earnings ratio = 23.85/2.38 = 10.021 times

Dividend yield = 0(NA)/23.85 = 0% Conclusion Both automotive companies show error and success through the analysis and interpretations of the financial statements and annual reports. As a whole we believe that Ford has shown strong financial stance, with the profitability succeeding General Motors. It will be crucial to pay attention to General Motors future trends, but for now Ford has more appeal to investors. Ford Motor Company pays their investors more often. They have also worked in the high and lows of economies pulling through and staying profitable. Ford has recently decreased all of their expenditures, which is also affecting their capital gain. Ford Motor Company would be the most secure investment at this point in time. Equation Analysis
Full transcript