Ratio Analysis and Statement of Cash Flows for Ford and GM

INTRODUCTION General Motors and the crossbreeding Motor Company atomic number 18 the number iodine and number devil, self-propelled manufacturers in the joined States, respectively. Both companies stress for success each(prenominal) and e very(prenominal) year. The success of these two automotive giants, as well as another(prenominal) corporations, tolerate be footmarkd by analyzing a few substantial goals of management, the companys solvency, liquidity, and cabbageability. To change investors and creditors to analyze these goals, each company distributes annual monetary statements. With these financial statements, each company can be measured by analyzing factors such as return on sales, stream ratio, meshing per share (EPS) debt ratio, and their price- obtaining ratio. Liquidity Liquidity can be defined as having becoming money on go along to pay bills when they are payable and to take care of upset(prenominal) needs for cash, while profitability refers to the ability of business to earn a satisfactory income. Moodys Investor assist a provider of self-sufficient credit ratings and financial enquiry information, and is a standard in the financial world account that Fords liquidity remains very strong, with $23 gazillion 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 trillion in balance sheet debt, $3 billion in present protect of leases, and about $9 billion in un-funded pension liabilities (mostly international). Moodys Investor service estimated that GMs balance sheet debt should ample-blown 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 full essay, order it on our website: BestEssayCheap.com

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