Ratio Analysis and Statement of Cash Flows for Ford and GM

INTRODUCTION General Motors and the track Motor Company atomic number 18 the number iodine and number twain, self-propelled manufacturers in the unite States, respectively. Both companies stress for success each(prenominal) and e really year. The success of these two automotive giants, as well as some other corporations, feces be mensural by analyzing a few grand goals of management, the companys solvency, liquidity, and expediencyability. To change investors and creditors to analyze these goals, each company distributes annual pecuniary statements. With these financial statements, each company can be valuated by analyzing factors such as return on sales, authoritative ratio, meshing per share (EPS) debt ratio, and their price- get ining ratio. Liquidity Liquidity can be defined as having becoming money on chip in to pay bills when they are payable and to take care of unthought needs for cash, while profitability refers to the ability of business to earn a satisfactory income. Moodys Investor assist a provider of sovereign credit ratings and financial enquiry information, and is a standard in the financial world account that Fords liquidity remains very strong, with $23 one million million in cash, securities, and short-term voluntary employee benefactive role association isotropys. That report is of promenade 31, 2005.

GMs liquidity is positioned at $32 one thousand thousand in balance sheet debt, $3 billion in present protect of leases, and roughly $9 billion in un-funded pension liabilities (mostly international). Moodys Investor service estimated that G Ms balance sheet debt should matured within ! 19 historic period with only about $3 billion maturing over the following(a) five years. Profitability The profit margin, which is assoil income, divided by net sales, is a measure of how many dollars of net income is produced by each dollar of sales. The Ford Motor Company is claiming the higher prices for gasoline, alto bondher materials and health care, among other things, when describing why its 2005 earnings will... If you want to get a unspoiled essay, order it on our website: BestEssayCheap.com

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