Ford Motor’s Financial Health Progress Report Essay

In the coming week, Learning team B will discuss the monetary health of cover push Co. The discussion will include an analysis of the flow financial cultivate after calculating profitability ratios, liquidity ratios, activity ratios, and solvency ratios. We will wait on questions slightly where the company began, how the company manages their investitures, and where the company is now financially. We will in like manner look at the DuPont Method as it relates to get across Motor Co. and their financial troubles.Specific Task that have been AccomplishedHow Much the Company has borrowed?It has been observe that Ford Motor Co. borrowed 23.5 billion dollars in 2006 from the government in an apparent movement to reduce debt. Ford Motor Companys debt liabilities, long term-debts, current notes is the total of what the company has borrowed. Define the Business NeedBecause of the money borrowed, Ford is in better shape than General Motors and Chrysler. The financial ratios, profi tability, liquidity, activity, solvency, have already been visualised. The transaction need will include high-level deliverables to resolve problems. The business needs of the Ford Motor Company is to improve in the sphere of return on equity and return on capital by addressing customer service needs and customer satisfaction as a means of retention of reputation and quality assurance.How liquid is the CompanyThe village of Ford Motor Company can easily be delimitate as the ability in which as asset can be converted into cash, to meet short-term financial obligations. In order for Ford to meet this obligation, the company has to have more liquid. The company can calculate their liquids by using financial rations such as cash ratio, active ratio, and current ratio.How Efficiently the Organization is using its AssetsThis will be decided by using the Debt proportions of the companys liabilities and assets. Additionally, the straight line dispraise mode will be used to determine if assets are bankable or assuming greater debt to the company.Strength and impuissanceThe strength and weakness of an organization is crucial. According to (Titman, Keown, & Martin, p. 79), Financial ratios provide a second method for standardizing the financial information in the income statement and balance sheet. Ratios cause questions about the pixilateds financial health or strength and weaknesses. The pertinent questions are how liquid is the firm, will it be able to pay on time, did the firm finance the purchase of assets, is the management efficient in utilizing assets to try sales, is ROI adequate based on the organization financial goals and objectives, and are shareholders acquire value for their investment.The ratio mechanism is liquidity, capital structure, and asset management efficiency, profitability, and securities industry value ratios assessments. The acid test is the current ratio to assess firm liquidity we assume that the firms accounts receivable will be collected and turned into cash on a timely al-Qaeda and that its inventories can be sold without an extended delay. But the truth is that a companys inventory might not be very(prenominal) liquid at all, (Titman, Keown, & Martin, p. 80).Debt & Equity FinancingAccording to (Investorwords.com, 2014), Debt finance requires acceptance money, usually as a loan from a bank, financial constitution or commercial finance companies, to fund investment of the organization. Organizations must documentation in mind that debt builds credit that s supports lower insurance grade and future borrowing. Additionally, an organization can gain a tax allowable interest rate to lessen the impact of repayment. Equity financing requires investment partners that provide funding for a share of ownership. Each type of financing has advantages and disadvantages of appeal, organizations use both to finance investment ventures.Problems, Solutions, and Potential IssuesThe high-level of deliverables occ urs fit in to the Britannica (2014)website because of financial struggles at the beginning of the 21st century, the company sold sour Aston Martin in 2007 and both Jaguar and Land Rover in 2008. In addition to selling Ford manufactures passenger cars, trucks, and tractors as well as parts and accessories.Next StepsThe team should further expound on the business need of Ford Motor Co. The Market Value Added (EVA) and scotch Value Added (EVA) have been research, but need to be further researched to condone difference it makes for Ford Motor Co. All ratios and ROE need to be calculated and explainedELIZABETH Profitability RatioLiquidity RatioActivity RatioSolvency RatioROEDuPont MethodFinally, the team needs to determine how economic the organization is at the end of the research.ConclusionIn concluding, Learning team up B discusses the financial health of Ford Motor Company deep down a progress report. The report includes an analysis of the current financial fountain after cal culating profitability ratios, liquidity ratios, activity ratios, and solvency ratios. The report answer questions about where the company began, how the company manages their investments, and where the company is now financially. The report in the end looks into the DuPont Method as it relates to Ford Motor Co. and their financial troubles.