Ratio Analysis and Statement of Cash Flows for Ford and GM

INTRODUCTION General Motors and the traverse Motor Company ar the number iodine and number dickens, self-propelled manufacturers in the coupled States, respectively. Both companies stress for success each(prenominal) and e actually year. The success of these two automotive giants, as well as otherwise corporations, rout out be measurable by analyzing a few most-valuable goals of management, the companys solvency, liquidity, and wageability. To change investors and creditors to analyze these goals, each company distributes annual financial statements. With these financial statements, each company can be criteriond by analyzing factors such as return on sales, actual ratio, meshing per share (EPS) debt ratio, and their price- bringing ratio. Liquidity Liquidity can be defined as having becoming money on evanesce 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 s atisfactory income. Moodys Investor assist a provider of self-supporting credit ratings and financial enquiry information, and is a standard in the financial world account that Fords liquidity remains very strong, with $23 zillion 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 cardinal in balance sheet debt, $3 billion in present protect of leases, and approximately $9 billion in un-funded pension liabilities (mostly international). Moodys Investor service estimated that GMs balance sheet debt sh ould advanced within 19 historic period wi! th 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 broad(a) essay, order it on our website: OrderCustomPaper.com

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