Ford Motor Financial Analysis and Financial Ratios
Quality Business Consultant's financial analysis expert, Paul Borosky, MBA., doctoral candidate, and published author, has created proprietary financial models to help analyze Ford's financial performance using Ford's summarized income statements and balance sheets for the last five years, found in their Annual Reports and Ford's 10ks.
Further, our financial model also calculates over 20 popular financial ratios, such as Ford's current ratio, return on equity, and debt ratio. This information is the basis of our financial report, "Ford Motors Financial Report", where we offer insights into understanding their financial standing through insightful financial analysis.
A Beginner's Guide to Ford Financial Analysis - 2021
- Included Easy to download PDF File.
- Included Easy to use format.
- Included Summarized Income Statements and Balance Sheets for the last 5 years..
- Included Popular financial ratios for the last 5 years included... with calculations and formulas!
- Included Expert tips to help with financial statements analysis.
- Included Expert tips to help with financial ratios analysis.
- NOT Included-Identify and discuss financial trends for the company..
- NOT Included-Expert financial analysis done by Paul Borosky, MBA.
- NOT Included- Analyst "Letter Grades" for the company's ratios.
Ford Financial Report by Paul Borosky, MBA. - 2019
- Included Easy to download PDF File.
- Included Easy to use format.
- Included Summarized Income Statements and Balance Sheets for the last 5 years..
- Included Popular financial ratios for the last 5 years included... with calculations and formulas!
- Included Expert tips to help with financial statements analysis.
- Included Expert tips to help with financial ratios analysis.
- Included Identify and discuss financial trends for the company.
- Included Expert financial analysis done by Paul Borosky MBA.
- Included Analyst "Letter Grades" for the company's ratios.
Ford Motor Financial Report and Financial Analysis
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Ford's Beginner's Guide to Financial Analysis
Table of Contents
- Disclaimer 3
- Forward 4
- Income Statement 6
- Ford’s Summarized Income Statements 6
- Revenues 7
- Cost of Goods Sold (COGS) 8
- Selling, General, and Administrative Expenses (SG&A 8
- Research and Development (R&D) 9
- Operating Expenses 10
- Earnings Before Interest and Taxes (EBIT 10
- Interest Expense 11
- Earnings Before Taxes (EBT) 12
- Taxes 12
- Net income 12
- Tax Rate 13
- Balance Sheet 14
- Ford’s Summarized Balance Sheets 14
- Cash 15
- Short-Term Investments 16
- Accounts Receivables 16
- Inventory 17
- Current Assets 18
- Property, Plant, and Equipment (PP&E) 19
- Total Assets 19
- Accounts Payable 20
- Accrued Expenses 21
- Short-Term Debt 22
- Total Current Liabilities 23
- Long Term Debt (LT Debt) 24
- Total Liabilities 25
- Common Stock and Additional Paid-in Capital 26
- Treasury 26
- Retained Earnings 27
- Total Equity 28
- Financial Ratios 29
- Ford’s Liquidity Ratios 30
- Current Ratio 30
- Quick Ratio 31
- Cash Ratio 32
- Ford’s Asset Ratios 34
- Total Asset Turnover 35
- Fixed Asset Turnover 36
- Days Sales Outstanding 36
- Inventory Turnover 37
- Accounts Receivable Turnover 38
- Accounts Payable Turnover 39
- Other Asset Ratio Calculations 40
- Working Capital Turnover 40
- Average Days in Inventory 40
- Average Days Payable 40
- Ford’s Profitability Ratios 42
- Return on Assets (ROA) 42
- Return on Equity (ROE) 43
- Net Profit Margin 44
- Gross Profit Margin 45
- Operating Profit Margin 45
- Ford’s Debt Ratios 47
- Debt Ratio 47
- Debt to Equity Ratio 48
- Times Interest Earned 49
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Ford's Financial Report
Table of Contents
- Disclaimer 3
- Acknowledgments 4
- Forward 5
- About the Author 7
- Company Summary 8
- Financial Statement Introduction 11
- Income Statement 12
- Ford’s Income Statement – Summary Analysis 13
- Income Statement Discussion 15
- Balance Sheet 23
- Balance Sheet – Summary Analysis 24
- Balance Sheet Discussion 26
- Financial Ratios 41
- Liquidity Ratios 42
- Liquidity Ratios - Summary Analysis 42
- Liquidity Ratios Discussion 43
- Current Ratio 43
- Quick Ratio 44
- Cash Ratio 45
- Other Liquidity Ratios 46
- Net Operating Working Capital 46
- Asset Ratios 47
- Asset Utilization Ratios - Summary Analysis 48
- Asset Utilization Ratios Discussion 49
- Total Asset Turnover 49
- Fixed Asset Turnover 50
- Days Sales Outstanding 51
- Inventory Turnover 52
- Accounts Receivable Turnover 52
- Accounts Payable Turnover 53
- Other Asset Ratio Calculations 54
- Working Capital Turnover 54
- Average Days in Inventory 54
- Average Days Payable 55
- Profitability Ratios 56
- Profitability Ratios - Summary Analysis 57
- Profitability Ratios Discussion 58
- Return on Assets (ROA) 58
- Return on Equity (ROE) 58
- Profit Margin 59
- Gross Profit Margin 60
- Operating Profit Margin 61
- Basic Earnings Power 62
- ROCE 62
- Capital Employed 62
- Debt Ratios 63
- Ford’s Debt Ratios - Summary Analysis 63
- Debt Ratios Discussion 64
- Long-Term Debt Ratio 64
- Debt to Equity Ratio 65
- Times Interest Earned 65
- WACC 67
- Book Value of WACC 67
- Free Cash Flow (FCF) 69
- Free Cash Flows – 2015 - 2019 69
- Free Cash Flows – 5 Year Projections 70
- Income Statement – Projections for 5 years 71
- Income Statement – 5 Year Projections 71
- Balance Sheet – Projections for 5 years 72
- Balance Sheet – 5 Year Projections 72
- Company Valuation and Intrinsic Stock Price 74
- Appendix 1: Summarized Income Statement 75
- Appendix 2: Income Statement – Percent of Sales 76
- Appendix 3: Income Statement – Year over Year Growth 77
- Appendix 4: Summarized Balance Sheet 78
- Appendix 5: Balance Sheet as Percent of Total Ass
Ford Financial Report by Paul Borosky, MBA.
Hey All,
Thanks for considering my Ford Financial Report. In this report, you will be able to find preliminary information about Ford Motor current financial performance as well as some historical track records and trends. Also, in this report, written by myself, Paul Borosky, MBA., Doctoral Candidate and published author, you will find:
- Summarized income statement for the last 5 years.
- Summarized balance sheet for the last 5 years.
- Summary analysis by myself of the important income statement, balance sheet, and financial ratio trends and other happenings.
- Five years’ worth of over twenty common financial ratios presented with formulas, calculations, and analysis tips for each ratio.
- Line by line description, explanation, and analysis tip for most financial statement line items and financial ratios.
- Professional financial analysis tips are provided in each section to help YOU conduct your OWN financial analysis!
- Each section includes an “in other words” segment. This is where I use plain English to explain concepts.
Sincerely,
Paul, MBA.
Sample Report
Ford Motor Income Statement Analysis Sample
In this section of the financial report, I walk you through a broad definition of what an income statement is and why it is important. From this, I then discuss and define important income statement line items, such as revenues, gross profits, etc., in detail. Finally, I offer a summary analysis of the company's important income statement line item trends. For example,...
Ford's Cost of Goods Sold.
Ford's cost of goods sold ended in 2015 at $124.4 billion. As compared to revenues, this is 83.2%. In the next four years, not only will the company's cost of goods increase to $134.6 billion in 2019, but its cost of goods sold as a percentage of revenues will also increase to 86.4%. This indicates that the organization's raw material costs are increasing at a faster pace as compared to revenues. If this trend continues, the organization's gross profits will continue to shrink as well. Unfortunately, this is an unsustainable pricing structure. At some point in time, either Ford will have to do a better job negotiating raw material costs, or the company will have to increase prices. The status quo is not an option.
Ford 2021 Summary Income Statement |
|||||
Column1 |
2021 |
2020 | 2019 | 2018 |
2017 |
Revenues |
136,341 |
127,144 | 155,900 | 160,338 |
156,776 |
COGS |
114,651 |
112,752 | 134,693 | 136,269 |
131,321 |
Gross Profit |
21,690 |
14,392 | 21,207 | 24,069 |
25,455 |
SG&A |
11,915 |
10,193 | 11,161 | 11,403 |
11,527 |
Depreciation |
7,318 |
8,751 | 9,689 | 9,385 |
9,241 |
R & D | - | - | - | - | - |
Other |
5,252 |
8,607 | 9,472 | 9,463 |
9,047 |
Total Operating Expenses |
24,485 |
27,551 | 30,322 | 30,251 |
29,815 |
EBIT |
4,523 |
(4,408) | 574 | 3,203 |
4,881 |
Other Income |
14,733 |
4,899 | (226) | 2,247 |
3,267 |
Interest Expense |
1,803 |
1,649 | 1,020 | 1,228 |
1,190 |
EBT |
17,780 |
(1,116) | (640) | 4,345 |
8,159 |
Taxes |
(130) |
160 | (724) | 650 |
402 |
Net Income |
17,910 |
(1,276) | 84 | 3,695 |
7,628 |
Ford Motor Balance Sheet Analysis Sample
In this section of the financial report, I walk you through a broad definition of what a balance sheet is and why it is essential. From this, I then discuss and define important balance sheet line items, such as cash, inventory, etc., in detail. Finally, I offer a summary analysis of the company's important balance sheet line item trends. For example,...
Ford Property, Plant, and Equipment
Ford's property, plant, and equipment ended 2015 at $30.1 billion. In the next four years, the organization will increase its property, plant, and equipment to $36.4 billion in 2019. As for the growth rate, the company seems to have had above-average growth in the property, plant, and equipment in 2017 and 2016, 10.1% and 6.3%, respectively. However, in 2018, the company's property, plant, and equipment growth rate fell to 2.4%, and in 2019 its growth rate was .8%. The slowing growth rate for property, plant and equipment indicates that the organization is anticipating slower long-term growth. From an investor's perspective, we should anticipate low revenue growth for the foreseeable future.
Ford 2021 Summary Balance Sheet |
|||||
Column1 | 2021 | 2020 | 2019 | 2018 | 2017 |
Cash | 20,540 | 25,243 | 17,504 | 16,718 | 18,492 |
Short Term Investment | 29,053 | 24,718 | 17,147 | 17,233 | 20,435 |
Account Receivable | 43,913 | 52,394 | 62,888 | 65,548 | 62,809 |
Inventory | 12,065 | 10,808 | 10,786 | 11,220 | 11,176 |
Other | - | - | - | - | - |
Current Assets | 108,996 | 116,744 | 114,047 | 114,649 | 116,801 |
Net PPE | 37,139 | 37,083 | 36,469 | 36,178 | 35,327 |
Goodwill | - | - | - | - | - |
Other | - | - | - | - | - |
Total Assets | 257,035 | 267,261 | 258,537 | 256,540 | 258,496 |
Accounts Payable | 22,349 | 22,204 | 20,673 | 21,520 | 23,282 |
Accrued Expense | - | - | - | - | - |
Accrued Taxes | - | - | - | - | - |
Notes Payable | 49,692 | 51,343 | 53,946 | 53,493 | 51,621 |
LT Debt - Current | - | - | - | - | - |
Other | - | - | - | - | - |
Total Current Liabilities | 90,727 | 97,192 | 98,132 | 95,569 | 94,600 |
LT Debt | 88,400 | 110,341 | 101,361 | 100,720 | 102,067 |
Other | - | - | - | ||
Total Liabilities | 208,413 | 236,450 | 225,307 | 220,474 | 222,792 |
Common Stock | 22,652 | 22,205 | 22,205 | 22,006 | 21,843 |
Treasury | 1,563 | 1,590 | 1,613 | 1,417 | 1,253 |
Retained Earnings | 35,769 | 18,243 | 20,320 | 22,668 | 21,218 |
Other | - | - | - | - | - |
Total Equity | 48,622 | 30,811 | 33,230 | 35,996 | 35,606 |
Total Equity & Liability | 257,035 | 267,261 | 258,537 | 256,540 | 258,496 |
Ford Motor Financial Ratios Sample
In this section of the financial report, I walk you through definitions of various popular financial ratios, how to calculate the ratios, formulas used, etc. Also, for some popular financial ratios, I provide brief explanations of what the ratios mean as it is related to the company.
Ford Quick Ratio
The company's quick ratio ended 2015 at 1.14. In the next several years, the company's quick ratio would fall to 1.05 in 2019. Even backing out inventory, the organization still has enough current assets to cover the current liabilities. This indicates that the firm should be financially solvent for the short to moderate term. However, the company does rely significantly on debt. This should be a major concern for investors. If the company cannot resupply its cash needs using debt, the firm may quickly end up insolvent.
Ford Fixed Asset Turnover Ratio
The organization's fixed asset turnover ended in 2015 at 4.96. In the next four years, the organization's fixed asset turnover would fall to 4.27 in 2019. This indicates that the company is utilizing its fixed assets less and less optimally. To better utilize its fixed assets, the company either needs to start selling more vehicles, or the firm needs to sell off some of its fixed assets to ensure increased efficiency for the rest of its fixed assets held.
Ford 2021 Liquidity Ratios |
|||||
Ratios | 2021 | 2020 | 2019 | 2018 | 2017 |
Current Ratio |
1.20 |
1.20 |
|||
Cash Ratio |
0.55 |
0.51 |
|||
Quick Ratio |
1.07 |
1.09 |
|||
Net Working Capital |
18,269 |
19,552 |
|||
Ford 2021 Asset Utilization |
|||||
Ratios | 2021 | 2020 | 2019 | 2018 | 2017 |
Total Asset Turnover |
0.53 |
0.48 |
|||
Fixed Asset Turnover |
3.67 |
3.43 |
|||
Days Sales Outstanding |
128.91 |
165.47 |
|||
Inventory Turnover (Using Sales) |
11.92 |
11.78 |
|||
Inventory Turnover (Using COGS) |
10.03 |
10.44 |
|||
Accounts Receivable Turnover |
2.83 |
2.21 |
|||
Working Capital Turnover |
7.46 |
6.50 |
|||
AP Turnover |
5.20 |
5.26 |
|||
Average Days Inventory |
36.41 |
34.95 |
|||
Average Days Payable |
70.15 |
69.39 |
|||
Ford 2021 Profitability Ratios |
|||||
Ratios | 2021 | 2020 | 2019 | 2018 | 2017 |
Return on Assets |
6.97% |
-0.48% |
|||
Return on Equity |
36.84% |
-4.14% |
|||
Net Profit Margin |
13.14% |
-1.00% |
|||
Gross Profit Margin |
15.91% |
11.32% |
|||
Operating Profit Margin |
3.32% |
-3.47% |
|||
Basic Earning Power |
1.76% |
-1.65% |
|||
ROCE |
2.72% |
-2.59% |
|||
Capital Employed |
166,308 |
170,069 |
|||
ROIC |
2.44% |
-2.62% |
|||
Ford 2021 Debt Ratios |
|||||
Ratios | 2021 | 2020 | 2019 | 2018 | 2017 |
Debt Ratio |
53.72% |
60.50% |
|||
Debt/Equity |
284.01% |
524.76% |
|||
Times Interest Earned |
2.51 |
(2.67) |