Ratio Analysis and Statement of Cash Flows for Ford and GM

INTRODUCTION General Motors and the crossroad Motor Company atomic number 18 the number iodine and number devil, self-propelled manufacturers in the join States, respectively. Both companies stress for success each(prenominal) and e really year. The success of these two automotive giants, as well as other(a) corporations, erect be mensurable by analyzing a few classical goals of management, the companys solvency, liquidity, and gain groundability. To change investors and creditors to analyze these goals, each company distributes annual fiscal statements. With these financial statements, each company can be greenbackd by analyzing factors such as return on sales, flowing ratio, meshing per share (EPS) debt ratio, and their price- pull ining ratio. Liquidity Liquidity can be defined as having becoming money on hap to pay bills when they are payable and to take care of unannounced needs for cash, while profitability refers to the ability of business to earn a s atisfactory income. Moodys Investor assist a provider of single-handed credit ratings and financial enquiry information, and is a standard in the financial world account that Fords liquidity remains very strong, with $23 meg in cash, securities, and short-term voluntary employee donee association isotropys. That report is of promenade 31, 2005.

GMs liquidity is positioned at $32 one million million million in balance sheet debt, $3 billion in present protect of leases, and about $9 billion in un-funded pension liabilities (mostly international). Moodys Investor service estimated that GMs balance sheet debt should good within 19 historic period with! only about $3 billion 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 full(a) essay, order it on our website: BestEssayCheap.com

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