Part A: Use Ford’s latest consolidated and segment financial statements (form 10
ID: 2774622 • Letter: P
Question
Part A: Use Ford’s latest consolidated and segment financial statements (form 10K) as filed with the SEC. Calculate the current ratio and profit margin for the company as a whole.
1. What are Ford’s 2 major segments?
2. What are the major 3 components associated with Ford’s profitability for cars and trucks?
3. (1 paragraph) on Ford’s planning assumptions and key metrics share.
4. (1 paragraph) on Ford’s Market for Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.
Explanation / Answer
current ratio for ford is 2.01 and net profit margin is 2.21 %.
The 2 major segment for ford are 1.Automotive sector and 2.Financial services sector
Major 3 components associated with ford profitibility :-
Market share.It beat generak motors to raise in top spot in US sales.
High structural cost.structural cost involve high production volumes , investment in futyre growth and new launches.
Supply chain structure
Fords planning assumption and key metrics share.
The automotive operating profit for 2015 is higher than 2014.
For southamerica it substantially improved over 2014, europe also it improved, middle east and africa ut had to face loss, asia pacific was higher , net interest expense was high.
Ford credit performance was higher compared to 2014.
Automotive revenue, operating margin, pretax profit was higher.
Ford commonequity, related stockholders matter, issuer and purchaser of equity shares
Its listed in nyse, ford common stock price was between13.26 to 16.13 in last quarter of 2015.
Dividend per share was 0.125
It has 137,803 shareholders of common stock and 36 holders of class b stock
In may 2014 it completed 116 million purchase of ford common stock,12.6 million shares were repurchased to offset the dilutive effect of share based employee incentive program.
In nov 20,2014 they announced to terminate holders right of conversion in accordance with terms of convertible notes.