Ford motors kaleem - 1 Evaluating Ford motor company is considered as the second largest automaker of the world There automotive brands include

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Ford motor company is considered as the second largest automaker of the world. There automotive brands include Aston Martin, Ford, Jaguar, Land Rover, Lincoln, Mazda, Mercury and Volvo. In order to be successful in business it is necessary to evaluate the performance of the company that how they have progressed throughout the year. They should compare their historical figures with their competitors. Financial analysis helps identifying and quantifying company’s strengths its financial position and shows potential risk. Financial ratios help in evaluating company’s performance. Liquidity ratio determines a company’s ability to meet short term financial obligations. Current ration of ford motors for year 2007 is 1.080. This is calculated by the figures of $54,243 of current assets/$50,218 of liabilities this liquidity ratio shows that ford motor has $1.080 for every $1 current liability. When comparing the current ratio with the competitor in the business we can take general motors’ whose current ratio is 0.86 which means general motors has $0.86 for every $1 liability where as industry average is 2.65 so ford motor should improve their current ratio as they are far away from industry average . Quick ratio of ford motors can be calculated by cash+marketable securities $25,208/$50,218 which equals 0.501 times. General motors has a quick ratio of .52 times where as the industry average for quick ratio is .99 times and from this
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This note was uploaded on 08/22/2011 for the course ACCOUNTING 201 taught by Professor Stevejoseph during the Winter '11 term at Aarhus Universitet.

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Ford motors kaleem - 1 Evaluating Ford motor company is considered as the second largest automaker of the world There automotive brands include

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