Ratio Analysis and Statement of Cash Flows for Ford and GM

INTRODUCTION General Motors and the cross Motor Company ar the number iodine and number both, self-propelled manufacturers in the join States, respectively. Both companies stress for success each(prenominal) and ein truth year. The success of these two automotive giants, as well as early(a) corporations, dope be metric by analyzing a few key goals of management, the companys solvency, liquidity, and breadability. To change investors and creditors to analyze these goals, each company distributes annual monetary statements. With these financial statements, each company can be amountd by analyzing factors such as return on sales, authoritative ratio, meshing per share (EPS) debt ratio, and their price- bring ining ratio. Liquidity Liquidity can be defined as having becoming money on throw to pay bills when they are payable and to take care of unhoped-for needs for cash, while profitability refers to the ability of business to earn a satisfactory income. Moody s Investor assist a provider of fencesitter credit ratings and financial enquiry information, and is a standard in the financial world account that Fords liquidity remains very strong, with $23 trillion 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 one million million in balance sheet debt, $3 billion in present protect of leases, and some $9 billion in un-funded pension liabilities (mostly international). Moodys Investor service estimated that GMs balance sheet debt should mount within 19 historic period with only about $3 bill! ion 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 liberal essay, order it on our website: BestEssayCheap.com

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