Please use Statements and Ratios to evaluate Fords performance over the last 3 y
ID: 2596542 • Letter: P
Question
Please use Statements and Ratios to evaluate Fords performance over the last 3 years. Bulluted points work well!
Income Statement for the year ended Honda General Motors Ford 2016 2016 Date Net Revenue CoGS Gross Profit Selling Admin and General Exp Operating Income or Loss 2016 2015 2015 2014 2015 2014 7,000,132 4,046,025 3,198,356 166.380,000152,356,000 155,929 000 151.800.0001 149.558.000! 144,077,00 122,52 2,316 881,671250003000800016,312,00018,149000 2,174,000 1,599,257 2,266,597 (667,340) 923,503 1,640.132 1,068,36011,7 12.196,000 10,502,000 11,842 (716,629)186,689)9,545,0004,897,0001,530,0004,116,0007,647,000332,00 2,939 429,000 1,070,000 1,025,00 1,794,000 1,560,000 894,000 773,000 797.000 8,434,000! 2.881,000 100,88652,0003000403,000 198,810 746,348) 26,698 118,851 (875,624) 13,039 Interest Exp Income Before Tax Income Tax Minority Interest EqityEarnings/Loss Unconsolidated Subsidiary Net Income 9,402,000 5,524,000 2,416,0001,897,000) 72,000 (284,636) 9,404 2,152,00 5,016,000 1 (41,000) 228 2.189,000 159,000 (69,000 2,000 1,780,00O 1,818,000 574914) (888,663) (294,040) 9268,000 9,615,000 4,018,000 4,596,000 7373,000 1.231,000 http://www.nasdaq.com/symbol/hmc/financials?query-balance-sheetExplanation / Answer
Calculation of Total Assets in 2013 using cash flows statement and balance sheet of 2014
Note: Increase in cash in hand = (14,468,000 - 10,757,000) = $3,711,000
Note: Since there is no figure of gain on sale of investment in income statement, we have assumed the same has been sold at par.
Calculation of Ratios.
1. ROE = Net Income / Average Stockholder's equity
Net Income = 1,231,000
Stockholder's equity for 2013 = equity total of 2014 - net income for 2014 - stocks issued + Dividends paid
= 24,438,000 - 1,231,000 - 1,964,000 + 1,952,000 = 23,195,000
Average Equity = 24,438,000 + 23,195,000 / 2 = $23,816,500
ROE = 1,231,000 / 23,816,500 = 5.16868%
2. ROA = Net Income / Total Average Assets.
Net income = 12,31,000
Assets in 2013 = 231,957,000
Assets in 2014 = 208,615,000
Average Assets = 220,286,000
ROA = 1,231,000 / 220,286,000 = 5.507%
3. EPS = Net income available for stockholder's / Outstanding stocks
Net income = 1,231,000
Outstanding average stocks = 888,000
EPS = 1,231,000 / 888,000 = $1.386
4. Assets Turnover = Net Sales / Average Assets
Net Sales = 144,077,000
Assets in 2013 = 231,957,000
Assets in 2014 = 208,615,000
Average Assets = 220,286,000
Assets Turnover = 144,077,000 / 220,286,000 = 0.654 times
5. Receivables Turnover Ratio = Net Credit Sales / Average Receivables
Net Credit Sales = 144,077,000
Average Receivables = 92,819,000 + (92,819,000 - 2,896,000) / 2 = 91,371,000
Receivables Turnover Ratio = 144,077,000 / 91,371,000 = 1.577
6. Inventory Turnover Ratio = Net Sales / Average Inventory
Average Inventory = 7,870,000 + (7,870,000 - 936,000) / 2 = 7,402,000
Inventory Turnover Ratio = 144,077,000 / 7,402,000 = 19.477.
Particulars Amount Total Assets in 2014 208,615,000 Less: Increase in Receivables (2,896,000) Less: Increase in Inventories (936,000) Less: Capital Expenditure incurred in 2014 (7,463,000) Sale of investments 38,348,000 Less: Increase in Cash in hand (3,711,000) Total of assets in 2013 231,957,000