Ford Motor Company Is A Good Investment Essay - 1448 Words

Student’s Name Professor’s Name Course 8 September 2016 Ford Motor Corporation Founded by Henry Ford in 1903, the Ford company is the world’s fifth largest automaker in the world. Publicly traded and held on the New York Stock Exchange, Ford uses the symbol of â€Å"F† to identify itself. The purpose of this document is to investigate and determine if the Ford Motor Company is a good investment. I will further cover a financial analysis of Ford Motor Company, evaluate the businesses consolidated statements of income, balance sheet, statement of stockholders equity, and statement of cash flows, which this will confirm if my conclusion is correct. Ford Motor Company is one of the largest United States automotive corporation company. The success of Ford Motor Company can be measured by analyzing and computing the three different valuation ratios, three different profitability ratios, and three financial strength ratios for three consecutive years. The outcome of the results can determine if the Ford Motor Company is a good investment. To enable investors and creditors to analyze these goals, Ford Motor Company distributes annual financial statements. With these financial statements, liquidity of Ford Motor Company is measured by analyzing factors such as the market value, market book value, price earnings ratio, enterprise value ratio, which provides the valuation ratios. Profitability ratio is the ability of business to earn a satisfactory income, which consist of grossShow MoreRelatedFord Motor Company A Good Investment960 Words   |  4 PagesFord Motor Company became incorporated in 1903 with 12 investors and 1000 shares o f stock. The company spent most of the cash on hand before the first vehicle was sold. However, before October 1, 1903, Ford Motor Company was showing a profit. In the upcoming years, Ford Motor Company continued to grow by opening a plant in Canada and a sales branch in Paris. In 1956, despite Henry Ford’s wishes, Ford Motor Company went public with the largest IPO (initial public offering) in history at the timeRead MoreAnalysis Of The Ford Motor Company Is A Good Investment Essay2169 Words   |  9 PagesNational American University – Online â€Æ' Founded by Henry Ford in 1903, the Ford company is the world’s fifth largest automaker in the world. Publicly traded and held on the New York Stock Exchange, Ford uses the symbol of â€Å"F† to identify itself (Motorsport.com, 2001). The purpose of this document is to investigate and determine if the Ford Motor Company is a good investment. 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Corporate Background Ford Motor Company, American automotive corporation founded in 1903 by Henry Ford and 11 associate investors. Henry Ford built his first experimental car (Quadricycle) in a workshop behind his home in Detroit in 1896. After formation of the Ford Motor Company, the first Ford car (model A) was assembled in July 1903. By October 1 of the same year, Ford Motor Company turned profit of $37,000. Five years later, in 1908, the highly successful Model T was introducedRead MoreCorporate Strategies And Implementation Of Ford Motor Company Essay1545 Words   |  7 PagesCorporate Strategies and Implementation Profitability is a crucial element in determining the financial health of the Ford Motor Company. The financial statement analysis is what allows the company’s managers to point the stability out of the company. 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