Ford Motor’s Financial Health Progress Report Essay

The discussion will include an analysis of the current financial condition after calculating profitability ratios, liquidity ratios, activity ratios, and solvency ratios. We will answer questions about where the company began, how the company manages their investments, and where the company is now financially. We will also look at the DuPont Method as it relates to Ford Motor Co. and their financial troubles.

Specific Task that have been Accomplished

How Much the Company has borrowed?

It has been discovered that Ford Motor Co. borrowed 23.5 billion dollars in 2006 from the government in an effort to reduce debt. Ford Motor Company’s debt liabilities, long term-debts, current notes is the total of what the company has borrowed. Define the Business Need. Ford Motor’s Financial Health Progress Report Essay

Because of the money borrowed, Ford is in better shape than General Motors and Chrysler. The financial ratios, profitability, liquidity, activity, solvency, have already been calculated.

The business need will include high-level deliverables to resolve problems. The business needs of the Ford Motor Company is to improve in the area 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 Company

The liquidation of Ford Motor Company can easily be defined 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, quick ratio, and current ratio.

How Efficiently the Organization is using its Assets

This will be determined by using the Debt Ratios of the company’s liabilities and assets. Additionally, the straight line depreciation method will be used to determine if assets are profitable or assuming greater debt to the company. Ford Motor’s Financial Health Progress Report Essay