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Unformatted text preview: Financial Ratio Comparison (2006) Ford GM Gross M argin Percentage 14.04% 3.83% Earnings per Share (6.72) $ (3.49) $ Price-Earnings Ratio (1.12) (0.01) Dividend Yield Ratio 3.33% 3.83% Return on Total Assets-2.52%-0.01% Return on Common Stockholders' Equity-252.84%-42.90% Book Value Per Share 0.58 $ (7.51) $ Working Capital 97,669,000,000 $ (3,691,000,000) $ Current Ratio 1.85 0.94 Acid-Test (Quick) Ratio 1.48 0.74 Inventory Turnover Ratio 12.6 11.86 Average Sale Period 28.97 days 30.79 days Times Interest Earned Ratio-0.93-1.35 Debt-to-Equity Ratio-81.39-35.00 Analysis of Selected Ratios Gross Margin Percentage • Important measure of profitability • More efficient companies usually see higher gross margin percentages • In 2006, Ford’s gross margin percentage was significantly higher Earnings per Share • EPS is generally considered to be the single most important variable in determining a share’s price • It is important to recognize that this EPS is reflective of the 2006 fiscal year...
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- Spring '09
- gross margin, inventory turnover ratio, Ratio Debt-to-Equity Ratio