Ford Motor Company, Inc.
Ford Motor is one of the world's largest automakers. Brands include Ford Mustang, F-Series pickup trucks and the Focus. Ford owns a small stake in Maza cars and operates about 65 plants worldwide.
Their financial ratios and how they compare to the industry average. Currently, their total current assets to total current liabilities, is 2.11 in comparison with the industry average of 1.38. The days of outstanding sales is 206 compare to it’s competitors of 26.25 and 110 respectively. The price/cash flow ratio is 7.32 compare to the industry of 7.35. Although ratios show that Ford Motor is below the industry average, but currently in a good financial position to cover liabilities.
The Ford inventory is in good standing with cost of goods sold days in inventory is 23.48 compare to the industry of 36.45 and in inventory turnover is15.54 compare to10.01. The Asset turnover is .76 with the industry being the same as.76.
The return on investment cap is stronger then the industry of 2.88% compare to 5.17%. This is a very important factor for all investors. The Asset turnover is 3.22% compare to 3.35% of the industry. This shows that they are just as strong and very competitive.
Both revenues and net income have continued to increase in both 2011 and 2012. The Net Income growth is 27.75% compare to the industry of 9.06%. In spite of some of the lower differences in some ratios and some that are even Ford Motor Net Income continue to grow and is able to grow even in the hard economic times. This speaks highly of the company in investing and financial terms.