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Ford Motor Company 1

BAM 479-OB

All Cases: Ford Motor Company

Yesenia Serna
Ford Motor Company 2

Case Statement

Henry Ford is the founder of Ford Motor Company that is the second-largest U.S

automaker behind General Motors. The company offers different vehicle models and has had many

ups and downs from previous years to learning from mistakes for the future. They care about

customer service and their employees in the workforce to the environment.

Vision statement:

Our vision statement at Ford Motor Company is based on One Ford, One Team, One Plan, and One

Goal. (David, 2012)

Ford’s mission statement:

Our mission statement at Ford Motor Company is to make people's lives better by making mobility

accessible and affordable. (Thompson,2019)

Mission-statement components:

1. Customers- Ford’s customers enjoy the reasonable priced vehicles and products.
2. Products & services- Ford provides better products everyday globally.
4. Technology- Ford keeps with up to date vehicles such as smart cars.
5. Survival, growth, and profitability- Ford provides financing for their product and services in
person or online.
6. Philosophy- Ford makes sure to provide to make lives better.
7. Self-concept- Ford provides not just locally but globally.
8. Public image- Ford has made it easier to travel.
9. Employees- Ford has helped train skilled employees. (Ford Motor Company, n.d.)
Ford Motor Company 3

Mission Table Evaluation

Customers- yes

product/services- yes

Technology- yes

Any concerns(Growth, public image, employees)- yes

Philosophy- yes

Self Concept- yes

Ford Motor Company focuses on putting people first, caring for their employees by not

having discrimination or harassment tolerated as well as keeping them safe at work with a healthy

work environment. The company is against government violation of the following areas of forced

labor, child labor and human traffiking. (Putting People First, n.d.)

Another strategy at Ford Motor Company is Protecting Our Planet that the company supports

using better ways to build vehicle parts for the brand. Global warming is such a problem that

endangers us in the future. Making changes for positive outcomes for our health and our society is

part of putting people first too. (Protecting Our Planet, n.d.) The last strategy Ford Motor Company

is Creating Tomorrow Together, creating smart vehicles for a smart world that helps everyday

challenges. It could be such as expanding to newer technology, tools and concepts for the company

to create advantages towards it. (Creating Tomorrow, Together, n.d.)

Milestones
Ford Motor Company 4

● Henry Ford came out with the first Quadricycle in 1896 that had four wheels, an engine

and only forward gear meaning it was unable to go in reverse.

● Ford Motor company goes long back to 1903 starting with 11 associate investors.

● In 1919 his wife and son later partnered with a company.

● Before the workshop Ford experiments at the mine has Detroit home in 1896.

● Ford expanded his plant in Missouri and England in 1911.

● In 1914 he introduced a $5 dollar a day minimum wage for his workers.

● Ford is the second largest family-owned company in the world.

● Ford's signature blue oval logo was introduced 4 years after already being in production.

● 1914, Ford paid his workers $5 daily which helped many workers to be considered

middle-class and there was less turnover for the company.

● Ford F-series was ranked number one in 2013 selling cars.

External Assessment

Key external factors Weight Rating Weighted score

Strengths:

Good price for small cars like Ford 0.035 1 0.035


Fiesta estimating as low as $15,000.

In 2015, Ford started two EcoBoost 0.055 3 0.165


engines- 2.0 & 2.3 liter.
Ford Motor Company 5

Rates were increasing in 2014. 0.075 2 0.15

Higher tech vehicles will save 1.3 0.055 3 0.165


trillion yearly from accidents in the
U.S.

Crossover vehicles were at 26% 0.075 2 0.15


highest on the chart.

Ford invested 6 billion on increasing 0.055 3 0.165


local manufacturing.

Ford’s trucks increased in sales. 0.055 1 0.055

31.9% increase in sales by Ford 0.06 3 0.18


Mustangs being highest sales in the
month of February.

New Mustang model was the highest 0.06 3 0.18


selling sports car in America.

Developed a new 3 year strategic 0.075 2 0.15


plan.

Weaknesses:

In 2014, Ford’s European increased 0.17 4 0.68


by 8 %. It is expected to lose money
that same year.

In 2014, even with the lower prices 0.075 2 0.15


on gas, cars being sold were 2%
below.
Ford Motor Company 6

In 2013, there were recalls on Ford’s 0.055 1 0.055


airbags.

In 2014, Auto loans were 11% higher 0.075 2 0.15


than previous year.

Ford’s brand fell sales of 1.7% in the 0.06 3 0.18


month.

Ford's two most popular vehicles 0.06 3 0.18


decreased in sales.

China sold more vehicles than the 0.055 1 0.055


U.S.

Pressure on other automakers. 0.075 2 0.15

Different economies to worry about. 0.075 2 0.15

Keep up with standard built-ins. 0.075 2 0.15

Ford’s shareholders were not satisfied 0.055 1 0.055


with all the losses within the
company.

Total 1.0 3.35

The External assessment for Ford Motor Company seems to have many strengths from

decent pricing for certain vehicles to being more environment friendly to safety concerns and

increase in sales.

The average price from other small vehicle brands like GM, Toyota, etc around $17,000 to

where the Ford small cars like the Ford Fiesta average as low as 15,000 making it more affordable

for those who are looking for a less pricier vehicle gives the opportunity for increased sales in that
Ford Motor Company 7

department. (David, 2012) This is why it is rated at 1 because it is such a positive outcome for not

only the company for customers to be affordable. With more and newer vehicles coming out could

create a growing demand for the brand.

Ford Motor Company does a good job or being environmentally friendly by building the eco-

boost engines to produce fewer emissions within the car and saves from wasting fuel less than a

regular car. In the long run, it could benefit to pay less for an eco-friendly engine to not only save

from paying for the vehicle but having to worry about pumping fuel into it.

From saving money to safety is a big concern for an automobile company that wants to

improve people from having car accidents by focusing on the sensors on the vehicles within the

brand. Reducing the numbers of car accidents globally is a big part of why it would be rated 3.

(Login, n.d.)

Like any other company there are some increases and decreases when making sales, and

having the process of creating a three-year strategic plan can help a company like Ford Motor to

continue to stay a known brand even with competitors around. They have always promised to have a

positive impact on their outlook and want to keep increasing sales and focusing on Asia. They plan

to create more manufacturing facilities there which will expand for more job opportunities.

The threats within the company were an airbag defect on the Ford brand from the known

models of the Ford Escape to the c max. This could have led to car accidents or deaths but thankful

no one was injured through this defect of 692,500 models. Ford Motor handled the situation well and

spent over billions of dollars on penalties. (David,2012)

Internal Assessment
Ford Motor Company 8

Key internal Weight Rating Weighted score


factors

Strengths:

12 newer models by 0.06 3 0.18


2020, introducing
sports cars.

Sales increased by 0.06 3 0.18


70 % in the U.S and
16 % in Europe

More loyal 0.045 2 0.09


customers

60% of revenues 0.06 3 0.18


from the U.S.
Canada and Mexico

$400 million 0.06 3 0.18


program in Europe
to grow in 2015

$136 billion from 0.06 3 0.18


vehicle sales

Offering new 0.06 3 0.18


products in the
existing market but
expanding.

Net income 3,187 M 0.06 3 0.18


Ford Motor Company 9

187,000 employees 0.045 2 0.09

EPS ratio .80 0.045 2 0.09

Weaknesses:

#1 75 % revenge 0.045 2 0.09


goes to raw materials

#2 $70,000 per 0.045 2 0.09


employee

Ford was second to 0.045 2 0.09


last in top five
automobile
manufactures

Toyota was better 0.045 2 0.09


than Ford on exhibit
6

Ford isn't the largest 0.065 1 0.065


car manufacturing
company in Detroit.

Rival forms at the 0.065 1 0.065


lowest from others

Lowest net income 0.045 2 0.09


of 3,187 M

Lowest Market 0.045 2 0.09


Capital of 63.4 B

Total equity 0.045 2 0.09


decreased from 2013
Ford Motor Company 10

to 2014

Total 1.0 3.81

The internal assessment for the Ford Motor Company focuses on producing new vehicles and

increasing its products so the government would not take over the company like other competitors

such as GM. Ford Motor Company was able to bounce back after the poor strategic planning to

come out with better products such as better quantity and healthier environmental products. (David,

2012)

Since the beginning of the company, Ford Motor always had consideration about their

employees from being able to increase pay in the past for employees to become middle class in the

American lifestyle. From lifestyle to work-life they wanted to make a good difference for all their

facilities globally by achieving goals as one team and working together.

In 2014, Ford Motor Company was in the top five automobile manufactures which sold 680-

unit sales. The internal assessment focuses on producing new vehicles and increasing customers with

the company. Meaning in that given period they were able to create their greatest profit per unit.

The overall score for the external and internal assessment are 3.35 and 3.81 with all the

strengths and weaknesses. This provides how improving their strategic plans can be a better future

for Ford Motor. Having the right employees to the right management can make a difference for

better opportunity to grow in product and facilities.

SWOT Analysis
Ford Motor Company 11

Strengths

-Known brand

- Globally

Weakness

-Too expanded

Opportunities

-American Brand

-Keep growing

Threats

-Competition

Industry Analysis

Porter’s Five Forces Model

Porter’s five forces model for industry analysis are five factors which study the difference within

the company’s profitability and attractiveness. This helps people to gain the inside view of how a

company like Ford Motor runs its company and how management uses these functions to determine

the current environment.

The five forces are:

1. Competitive rivalry or competition (strong force)

2. Bargaining power of buyers or customers (moderate force)

3. Bargaining power of suppliers (moderate force)

4. Threat of substitutes or substitution (moderate force)

5. Threat of new entrants or new entry (weak force)


Ford Motor Company 12

Competitive Rivalry or Competition

This competitive rivalry factor is a strong force, and it compares the strengths of other

companies and how prices can be decreased for higher profitability for the future. Ford Motor

Company tends to have a tense level of competitors from other vehicle brands like in the external

and internal analysis (GM, Toyota, BMW, Honda, Volkswagen, Hyundai-Kia, Nissan, Mercedes,

and many more). Ford Motor Company needs to forcefully improve their products by marketing in

ways where they are aggressive with it to meet standards like other vehicle brands or even better. As

well as stepping up their game to selling the number of firms like comparing a big company like

General Motors. Competition in the car business would rather continue to compete with a company

like Ford since the cost of expenses are high and they would rather do that than close their

businesses. That means Ford must increase advantages to deal with external factors by coming up

with more unique ways to get customer’s attention to their products. Maybe even considering

working with the competitors to gain sales. (Ferguson, 2017)

In 2015 Ford Motor Company came out with a new performance vehicle (Ford GT) being a

supercar that is part of the total twelve to be out by 2020 like the Focus RS, F- 150 Raptor, Shelby

GT 350, and Shelby GT 350 R. The GT is the most eco boost engine and produces a v6 of more than

600 horsepower as well as being lightweight in carbon fiber construction. By producing more

advanced vehicles it benefits all cars having the opporting to be eco-friendly and reduce wasteful

products to the environment. (D,N. 2016)

The Ford GT supercar entered an automobile race in 2016 called the 24 Hours of Le

Mans and it was close to beating one of the strongest competitors Ferrall’s 488 GTE. The
Ford Motor Company 13

company was proud to enter which it all began from a racetrack when Ford Motor Company

started rather than in a laboratory. (Glon, n.d)

Bargaining Power of Buyers or Customers

This factor of new bargaining power of buyers or customers impacts how they are able to

advertise more to potential customers by offering the best deals and products. Ford Motor

Company needs to live up to customers’ expectations for them to increase the number of larger

loyal customers. By increasing customer loyalty there is a better chance of giving out deals and

discounts to their customers by having a bigger platform. By creating new products every chance

they get they can grow into not having a huge turnover of customers choosing other brands in the

car industry. (Ferguson, 2017) Automobiles are considered big ticket items and by pricing them

fairly can reduce the chances of customers choosing other brands.

Reducing not only costs of the vehicles but many customers do not have the full amount

to purchase from dealers that sell the Ford Brand so considering an affordable loan or ways that

helps people to be able to take out vehicles for personal use.

Bargaining Power of Suppliers

This factor of bargaining power of suppliers focuses on how suppliers can control what

amounts of product is distributed to companies by either raising the price or lowering the supply. In

which many automobile companies have the advantage of having multiple suppliers to get raw

materials from. Many automobiles rely on manufacturers to produce most of their parts for vehicles.
Ford Motor Company 14

It has been a decade since many automobile brands have expanded to other countries globally

making the auto suppliers increase from 56% in 1985 to almost 80% now. (Kallstrom, 2015)

For Ford Motor Company, managers hire multiple suppliers and this can be an advantage for

the company in the case because certain suppliers increase prices by the products and have a backup

of choosing more than one. As well as choosing the right suppliers to where they can reply on

trustworthy products being produced on time. (Department, n.d)

Threat of Substitutes or Substitution

This factor threat of substitutes in the car business is choosing one over another. Ford

Motor Company spends so much on keeping up to date in running a company which helps the

threats of substitutes be less likely but they can increase the standard of giving customers what

they need and not just focus on what will be a profit to the company. Maintaining a positive

attitude towards all customers and good customer service overall. (Department, n.d)

Another threat is people can choose to use public transportation and ride bikes to where

they need to go but that is limited to certain areas around the world. It is so much cheaper to use

other transportations if possible since many insurance companies are expensive and pay monthly

payments on the vehicle if not paid off.

Threat of New Entrants or New Entry


Ford Motor Company 15

This factor threat of new entrants is having to be up to date with the trends of the models

and outlooks of the vehicles. The challenge for Ford Motor Company is to have well- marketed

strategies to focus on the prices with each car model and how well it works for the customers.

Each year there are newer models that come out from every car brand which makes an eye-

catching technique for new customers to purchase and also makes the remaining loyal customers

be proud of purchasing from a brand like Ford Motor. The company can focus on researching

what will be best for the company then and for the future to keep up with the increase in sales.

(Department, n.d)

Competitive Strategies

SWOT Matrix

The Strengths-Weaknesses-Opportunities-Threats (SWOT) Matrix is an important matching

tool that helps managers develop four types of strategies: SO (strengths-opportunities) strategies,

WO (weaknesses-opportunities) strategies, ST (strengths-threats) strategies, and WT (weaknesses-

threats) strategies. (David, 2012)

FORD MOTOR COMPANY


Ford Motor Company 16

Strengths Weaknesses

● Strong known brand ● Limited production


● Global brand network
● Effective innovation ● More expensive than
processes competitors
● Overseas

Opportunities SO WO

● Global ● Growth expansion ● Try to reduce costs


● Growth within ● Growth in ● Trying other options
company eco production to use
friendly

Threats ST WT

● Aggressive ● They need to be ● Finding ways to keep


competitions unique from others on being successful
● Newer higher ● They to be more ● Producing cheaper
technology advance by the time than competitors

Strengths

Ford Motor Company has many strengths globally being the fifth largest in the world to sell

vehicles. The company has expanded from being the normal entry- level of vehicles of cars and
Ford Motor Company 17

trucks to luxury cars like the Ford GT brought up in the beginning of the section. From section

expansion the company has also considered a car-share program where 14,000 loyal customers who

finance through the Ford brand from 6 cities in the United States and London will have the

opportunity to rent cars for a period of time. (David, 2012)

In the financial result, Ford Motor Company has had the best quarterly profit since the year

of 2000. Tt has grown from 7.6% up to one- tenth from the year of 2014. In the income statement, it

has increased in net income from 3,187 million to 7,182 million which is a big gap to increase from

one year to another. ( David, 2012)

The company has overall had good innovations compared to other competitors, they have

introduced many different projects such as new Ford Sync communication and entertainment

systems. It benefits customers to enjoy their time in the vehicles by having to touch a screen.

Weaknesses

Some of the major weaknesses that Ford Motor Company deals with limitations of

production factories than other competitors like Toyota by having a strong supply chain. The

disadvantages of overseas production has made Ford Motor lose lots of money from management

run there. It was estimated that 4.3 million dollars were lost from 2012 to 2014. By losing that much

money in an international country makes it harder to recover the lost amount. By the lostment of

money it has been hard to be on an average of price for the vehicles being made than many other

competitors. (Miller, 2015) That is why In recent years they had to close down product facilities in

Europe due to cut cost, that is about 20 percent of production facilities there and much of the

reasoning is how cars are being so advanced to the point there are cars like the Tesla that drives
Ford Motor Company 18

itself. Cars are becoming less human driven. That will be one of Ford Motor’s main weaknesses in

the future and they need to become more advanced than competitors. (Naughton, 2019)

Luxury vehicles are nice but that is another weakness Ford Motor is struggling with keeping

up with all the models being sold successful globally. Although they are doing well with the

innovation process they are spending too much money on structure which takes away from focusing

on other most important problems in the company. Even with the high spending on the structure they

can't seem to be on top from others competitors in the car business. In the financial process they

need to step up their game to increase profit for themselves. They are not doing too bad but they

could be doing better.

Opportunities

Ford Motor Company has many opportunities to advance globally with countries like

China and India since they have a large population and make an appearance for the company. It is

planning a 760- million- dollar plant in China to where it will double passages car caption already

having 100 cars for 1000 people on the road. (Miller,2015) It is yet to be the largest expansion done

in the last 50 years. Nowadays being more eco- friendly can be a major positive opportunity to get

more customers who would rather see a benefit to the earth and purchase that product even if it is a

bit more pricey with Ford Motor Company being higher priced than others, that can be their benefit

to being higher in the long term. The company is already going green by being the first U.S.

automobile brand using 100 percent recycled fabric for their seats. Not only focusing on making the
Ford Motor Company 19

car more usable using recycled objects they also planted gardening around their corporate properties.

(Wires, 2007)

Threats

Ford Motor Company operating from different countries creates a currency fluctuation from

different exchange rates that can really affect the way of running the company time and value. Also

having too many facilities opened can be harder to keep up with than the competitors. They also

have threats of companies like Apple or google coming out with vehicles so newer brands that are

known that would be able to take over. There are a lot of threats from General Motors and Toyota

having a better structure than Ford Motor. (Department, n.d.)

SO Strategies

Ford Motor Company has models that are considered luxury vehicles that can be the right fit

to be the first ones to consider more environmentally friendly advertisements for luxury vehicles

made out of recycled parts because many other brands advertise more of how the engine has in the

vehicle. It can shift any downfalls the company has endorsed by promoting those types of cars

globally around the world. It is an opportunity for expansion of customers to engage in a brand that

keeps improving their innovations. By having more environmentally friendly parts made by the

manufacturers it saves the company money to have more creation in the future such as flying cars as

many people believe that someday that will be the case.

WO Strategies

Ford Motor Company has many opportunities being global around the world but making

options such as reconsidering focusing where it all started in the small city of Detroit, Michigan
Ford Motor Company 20

would be an option for Americans to have more manufacturing plants here rather than overseas

because there are ways that they can save money that it is harder to run overseas such as worrying

about currency rates and the management there.

ST Strategies

Ford Motor Company needs more positive ways to not have to close down production due to

expenses losses. They have the strengths of selling different types of models that helps them focus

on those specific products. Maybe by having the business be more included in new technology like

going online more than in person to purchase a vehicle could make it different from a car model like

Tesla that will deliver their cars. Since a company like Tesla is already doing it it can backfire to not

gain anything from that.

WT Strategies

Ford Motor Company needs to put better management in charge to where there is more positive

change within the company globally. Being higher than other car brands is a huge weakness and

threat to them. There can be problems such as having not as motivated team members even though

they spend a good amount of money going to those programs to take from learning. By not having

the best workers on the team can slow down production. Which causes production facilities to close.

Growth Rates

The growth rate for any company typically measures any increase in revenue over time. It

is calculated by the specific companies profitability and sustainability. It could be calculated over a

set period of time from weekly, monthly or yearly. Ford Motor Company's growth rate in 2015 was

12.21% which is higher than the industries surrounded by it being at 4.25% growth rate from all

industries. (MSN, 2015) This indicates that the company has done good in the overall performance

within the period.


Ford Motor Company 21

Next, comparing the net income focuses on earnings before taxes and the potential of

other payroom deucations for a company like Ford Motor Company helping to analyze profitability.

In 2015 they were at the net income of 16.58% to where the comparison of the industry net income

was -34.36% which put Ford Motor Company in a good margin compared to many others being

towards the negative margins doing not so well in sales. (MSN, 2015)

Price Ratios

The Price ratios simply focus on The Current Price Earnings (P/E) and The Price/Sales

Ratios that tell whether the difference between the stocks of it being over or undervalued. They use

this prediction to know where they are headed to in the future. When stocks are undervalued it

means the price ratios are low and could be caused by such financial trouble or labor problems from

products not being delivered on time. Overvalued stocks can be caused by having high expectation

growths for the future.

For Ford Motor Company it’s priced earnings ratio was 19.31% to where the rest of the

industry was 11.34% which seems probable to know how much the company actually earns within a

year. (Marks, 2017 )

The Price Sales Ratio for Ford Motor is at 0.34 to where the rest of the industry’s priced ratio

is at 0.24 which shows good earnings to the investments made in 2015. It could be because of cutting

cost Ford Motor did during the year to have such a high number outcome.

Profitability Ratios / Profit Margins


Ford Motor Company 22

Profitability Ratios brings out the earnings of operating cost and focusing on the analysis

of the earnings. This technique is used to compare easier to other companies that are either doing

well or not so well In the financial aspect. To see the improvement in management needs to increase

cells and reduce cost. (Kenton, 2020)

This profitability ratio discussed for Ford Motor Company will include pre-tax profit margin

and the net profit margin.

Starting with the pre tax margin requires the income statement and the income before

taxes. This gives useful techniques for companies to know how successful they are now and for the

future people like investors and analysis focus on this main technique. When there are high pre-tax

profit margins that means it's good for the company but when it is low that means it's not good for

the company. (Kenton,2020) Ford Motor Company’s pre- tax margin is 3.58% to where the pre tax

margin for other industries is at 5.74% it is lower than others but still it is good for it not being in the

negatives.

The net profit margin is very important on the financial side because it basically tracks

what the current operations are doing is working either seeing the increase and decrease in

engineering Revenue. The net profit margin is either in percentage or decimal to see profit. Ford

Motor Company’s net profit margin is 5.25% to where other industries are 4. 11% indicates that

Ford Motor is doing good in that section by tracking profits. (F.,n.d.)

Financial Condition

The financial condition is the report of performance within the company and value to the

company in its ways to know how they're going to survive future downfalls and how they are going
Ford Motor Company 23

to be able to improve if there is a downfall. There will be that equity ratio and the book value per

share on Ford Motor Company

The debt equity ratio plays in part of the financial condition where it compares the total

liabilities and the total shareholder equity. It is basically how much debt the company keeps running

its business to success sales. Bankers and investors focused more on this side of the condition. For

Ford Motor Company their debt equity ratio was at 4.69% which is not too bad.

The book value per share (BVPS) is the second part of the financial condition where

investors use this to their total assets and it focuses on fairly shares within the company. It is easy to

compare to other companies being undervalued or overvalued. It does have limitations to only seeing

current values than to seek future values. For Ford Motor Company the book value is $6.28 to where

the other industries is $6.18 which is good for the company to be at its current value.

Investments Returns

Investments Returns is money made or lost on the investment which puts your company

on risk with certain accomplishments for that period.

Return on Assets (ROA) is related to the total assets from an investment being earned at

the end of the year. The ROA indicates how well a company is running operations in the profit

aspect. The higher the return the better for a company to benefit from and the lower it is the less

benefit it is for it. The return on assets ratio for Ford Motor Company is 3.4% and for the rest of the

industry is 4.9% which is average for them and even beyond average than the rest of the others.

(Kenton, 2020)
Ford Motor Company 24

Return on Equity (ROE) measures equity and it is a good tool to compare to others of how

they are doing in the industry. It is the same as return on assets because it has the difference of ROA

seeing the good in the company to where the ROE could lead more into seeing the negative. Ford

Motor Company’s return on equity is at 5.45% which is very low compared to the industry of 19.28

which the average of it being good ranges from 10-20 percent and was not met by the Ford Motor

Company. (F, n.d.)

Return on Capital focuses on the funds measuring percentages for the company growth in

many cases. The benefit of using this could show the future growth. For Ford Motor Company the

return on capital is 8.80% which is average and for the industry it is 13.77%. (F.,n.d.)

Management Efficiency

Management Efficiency focuses on how well a company manages everything into one and

there could be different techniques to measure the efficiency. Either technique there could be loss of

income when calculating. Ford Motor Company income per employee is at $810,787k and the

insdursts income per employee is at $715,414k which means that Ford Motor is making revenue and

will continue to do so with the specific technique that they are using for this. (F.,n.d.)

5 Year Summary

Ford Motor’s Company’s yearly revenue from 2006 and 2010 increased from 35.876 B

237.263 b since there is an increase. Over the years it has shown the increase and decrease over time

which the years 2008-2010 it was at the lowest of decrease for the company throughout those years

there was the lowest point of -43.66% growth. The year 2010 was the best with an increase of

38.80% from sales which dropped going towards the year of 2011. It picked back up in the year
Ford Motor Company 25

2012 with 5.35% to later decreasing in 2014. The year 2015 was third greatest growth from the

decade to increase. (macrotrend, n.d)

In addition to Ford Motor Company’s revenue, introducing ways that can benefit the

company to growth in customer excellence such as expanding in ways for a better future. Focusing

on the main subject such as customers' opinions with the company to improve their downfalls of

matters such as products or service within the brand. Ways that are going to stop potential customers

of choosing competitors over the brand. Creating more options that ought to be known as luxury

going beyond average necessaries in a model. Global expansion of reaching different backgrounds of

cultures and potential opportunities in third world countries.

Strategic Alternatives

QSPM

Key external factors Weight Global vehicle Competition


industry development

Strengths: AS TAS AS TAS AS TAS

Good price for small cars like 0.035 2 0.12 3 .18 1 0.055
Ford Fiesta estimating as low
as $15,000.

In 2015, Ford started two 0.055 2 0.12 3 .18 1 0.055


EcoBoost engines- 2.0 & 2.3
liter.

Rates were increasing in 0.075 2 0.12 3 .18 1 0.055


2014.

Higher tech vehicles will save 0.055 3 0.18 3 .18 1 0.055


Ford Motor Company 26

1.3 trillion yearly from


accidents in the U.S.

Crossover vehicles were at 0.075 3 0.18 2 .12 2 .12


26% highest on the chart.

Ford invested 6 billion on 0.055 3 0.18 2 .12 1 0.055


increasing local
manufacturing.

Ford’s trucks increased in 0.055 2 0.12 3 .18 2 .12


sales.

31.9% increase in sales by 0.06 3 0.18 2 .12 2 .12


Ford Mustangs being highest
sales in the month of
February.

New Mustang model was the 0.06 2 0.12 3 .18 2 .12


highest selling sports car in
America.

Developed a new 3 year 0.075 3 0.18 2 .12 1 0.055


strategic plan.

Weaknesses:

In 2014, Ford’s European 0.17 2 0.12 1 .055 1 0.055


increased by 8 %. It is
expected to lose money that
same year.

In 2014, even with the lower 0.075 1 0.055 2 .12 1 0.055


prices on gas, cars being sold
were 2% below.
Ford Motor Company 27

In 2013, there were recalls on 0.055 2 0.12 1 .055 1 0.055


Ford’s airbags.

In 2014, Auto loans were 11% 0.075 1 0.055 2 .12 1 0.055


higher than previous year.

Ford’s brand fell sales of 0.06 1 0.055 2 .12 1 0.055


1.7% in the month.

Ford's two most popular 0.06 2 0.12 1 .055 1 0.055


vehicles decreased in sales.

China sold more vehicles than 0.055 1 0.055 3 .18 2 .12


the U.S.

Pressure on other automakers. 0.075 2 0.12 1 .055 3 .18

Different economies to worry 0.075 1 0.055 2 .12 3 .18


about.

Keep up with standard built- 0.075 2 0.12 3 .18 1 0.055


ins.

Strengths

Ford’s shareholders were not 0.055 2 0.12 3 .18 1 0.055


satisfied with all the losses
within the company.

12 newer models by 2020, 0.06 3 0.18 2 .12 2 .12


introducing sports cars.

Sales increased by 70 % in the 0.06 2 0.12 2 .12 3 .18


U.S and 16 % in Europe

More loyal customers 0.045 3 0.18 3 .18 3 .18


Ford Motor Company 28

60% of revenues from the 0.06 2 0.12 3 .18 3 .18


U.S. Canada and Mexico

$400 million program in 0.06 3 0.18 2 .12 3 .18


Europe to grow in 2015

$136 billion from vehicle 0.06 2 0.12 2 .12 3 .18


sales

Offering new products in the 0.06 1 0.055 3 .18 2 .12


existing market but
expanding.

Net income 3,187 M 0.06 2 0.12 1 .055 3 .18

187,000 employees 0.045 2 0.12 2 .12

EPS ratio .80 0.045 1 0.055 1 .055 2 .12

Weaknesses:

#1 75 % revenge goes to raw 0.045 1 0.055 1 .055 2 .12


materials

#2 $70,000 per employee 0.045 1 0.055 1 .055 2 .12

Ford was second to last in top 0.045 1 0.055 1 .055 3 .18


five automobile manufactures

Toyota was better than Ford 0.045 1 0.055 2 .12 3 .18


on exhibit 6

Ford isn't the largest car 0.065 1 0.055 1 .055 1 0.055


manufacturing company in
Ford Motor Company 29

Detroit.

Rival forms at the lowest from 0.065 1 0.055 1 .055 1 0.055


others

Lowest net income of 3,187 0.045 1 0.055 1 .055 1 0.055

Lowest Market Capital of 0.045 1 0.055 2 .12 1 0.055


63.4 B

Total equity decreased from 0.045 1 0.055 1 .055 2 .12


2013 to 2014

Total 1.0 5.68 4.68 4.29

Strategic Alternatives Recommendations

This section focuses on the decision making for the company to grow with the use of SWOT

and QSPM. The attractiveness focus on Ford Motor Company wants to become the most trusted

automobile company by designing smart vehicles for a smart world as stated before. It’s goal is to

revisit revenue growth and come up with different ways to operate its company. Capital towards

creating less room passage space and more bigger vehicles such as trucks and SUVS. To include

better smart digital systems in their brand. (Login, n.d)

There could be many opportunities such as market penetration, Ford Motor Company has

worked in the race car industry to continue and possibly expand to other sponsor events globally.

There many people who still watch the traditional way of watching television and creating more

advertisements there could boost sales for the older generation. As well as including more blogs for
Ford Motor Company 30

the younger generation to read and get more interested with the brand. It is one of the most fuel-

efficient vehicle brands and continuing to pursue more models in the vehicle can uplift their brand in

ways that other competitors are not.

Implementation Plan

Ford Motor Company’s implementation plan has to do with new programs and areas that are

the brands main focus of improving technology within the vehicles models to testing new programs

such as initial research experiments in the U.S and London.

Executives:

● Management should focus on its goals

● Keep all management up to date with plans

● Meeting frequanty for potential setbacks

Finance:

● Focus on monitoring the financial aspects for the company

● Focus on the main goals for success

Marketing:

● Focus on the target market and advertise campaigns

● Partnerships

● Include more digital social media

Research & Development:


Ford Motor Company 31

● Look into more reward programs

● Study and draw conclusions

● Enhancing existing products

● Help communities

Human Resources:

● Focus on hiring the right fit for the company and the work environment

● Make sure training and talent checks are being taken into consideration with upper

management

For a company's implementation plan it is important for executives to create plans that

will help the company grow financially and budget plans for the future. Whether the plans are

short term or long term reaching the goals and making sure everyone within the company can

agree with decisions being made. Handling the general requirements for contractors in hiring

within the company. Overall making sure it runs smoothly from every aspect to every

management position. Taking care of challenges within.

Chief Executive Chairman William Clay Ford Jr. has taken many steps into keeping Ford

Motor Company traditional from where it started but as well as changing it up to more energy

saving efficient vehicles. He believes the purpose of a company is to make people's lives better. (

Login. (n.d.) That is why Ford Motor Company came up with “ The Bill Ford Better” and

introduced the “Ford Smart Mobility.”


Ford Motor Company 32

The Bill Ford Better is a global program that funds employees to connect with local non

profit programs to help in such as running water, food and shelters. These types of charity works

are run and planned by the employees at Ford Motor Company who receive annual rewards for

the types of charies planned. This gives employees to work within the communities of need by

making good choices to make change, possibly coming together to help one another in many

ways that improves lives. The Bill Ford Better program has raised over 1.4 million in grants to

help all over the world: Mexico, India, Thailand, the United States and South Africa. (User, n.d)

The city of Detroit has vending machines where there are first aid kits,hygiene products

and many more things provided to the community for those in need. In many countries the

company has made many differences in the water project in South Africa where 156 gallons of

water is able to come out of the system to Mexico where people are able to drink safe water and

not worry of the toxic chemicals. India was able to install 300 SMART toilets for people to have

more privacy when using the restroom which was not a norm for the people before this project.

Thailand cleaning water has benefited up to 13 schools and the production of planting fruits and

vegetables which was done by over 200 volunteers of Ford Motor Company. (User, n.d)

These are some of the ways of making lives better around the world with the right

management of Chief Executive William Clay Ford Jr. in 2015 he was given the Ambassador for

Humanity Award by the USC Shoah Foundation Institute.

The Ford Smart Mobility LLC of new programs is focused on the way the world moves.

It is expected to grow in new mobility service by expanding its brand. The establishment was

done by Chairman Jim Hackett in California and Michigan to later be taken over by CEO Mark
Ford Motor Company 33

Fields two main key areas of mobility are flexible use and ownership. By this project it is

shifting the company to automotive in a more mobility way.

The Ford Smart Mobility LLC, the company’s plan to be a leader in connectivity,

mobility, autonomous vehicles, the customer experience and data and analytics. (Login, n.d) This

plan was focused to learn more about what consumers expect for the brand such as including wifi

internet in the vehicles to more or less space in the vehicles. The company will continue to

improve on products and technology. Expected to make $5.4 trillion in annual revenue and to

grow by $43 million in 2020. (Login, n.d) The process includes vehicle connectivity, mobility,

autonomous vehicles, consumer experiences and data/analytics.

Vehicle connectivity includes the entertainment and communication system:

● Free capability for Apple users

● Updated wifi

● SYNC 3 on certain models/ Sync connect

Mobility is focused on driving and parking techniques in the system which helps find parking

spaces in areas of larger busier cities.

● GO Park

● GO drive

Autonomous vehicles adaptive cruise control, active park assist, lane-departure warning, lane-

keeping aid, pedestrian detection, Pro Trailer Backup Assist and vehicle-to-vehicle connection

technology. (Login, n.d) To be tested in states in:

● Arizona
Ford Motor Company 34

● California

● Michigan

Consumer experiences focuses on free digital FordPass that includes four benefits that are

● Marketplace

● Appreciation

● Ford Guide

● FordHubs

Data/analytics is focused on understanding customers wants and needs within a matter of 10-15

seconds using data science.

Former chief transformation officer Marcy Klevorn was the executive vice president and

president of Ford Mobility which she outlined the plans to continue the global data and analytics.

Vice President of autonomous vehicle solutions was Laura Morlary, she was responsible for the

software of the internet fixing any problems that have to do with the technology.Another chief

executive is Raj Rao who has many roles in the Ford Smart Mobility LLC as a marketer and

financial executive. With all the help of every executive in the process Ford Motor Company

ended up raising 3 million after completing the program.

Financing

There are three alternatives for Ford Motor Company to raise capital: debt, equity or a

combination of debt and equity. To consider the financing options of developing a better

programs for the company and more advanced vehicles, the following assumptions have been

considered in the EPS/EBIT analysis


Ford Motor Company 35

● Amount required: $3 billion

● EBIT range: $10-20 billion

● Interest rate: .6%

● Tax rate: 39%

● Stock price: $10.72 per share

● Shares Outstanding: 4,002,100,000

EPS/EBIT Analysis

Common Stock Financing Debt Financing

Recession Normal Boom Recession Normal Boom

EBIT 10,000,000 15,000,000 20,000,000 10,000,000 15,000,000 20,000,000

Intertest - - - 10,000 10,000 10,000

EBT 10,000,000 15,000,000 20,000,000 9,990,000 14,990,000 19,990,000

Taxes 3,900,000 5,850,000 7,800,000 5,994,000 8,994,000 11,994,000

EAT 6,100,000 9,150,000 12,200,000 4,006,000 6,006,000 8,006,000

Shares 7,002,100,011 7,002,100,011 7,002,100,011 4,002,100, 4,002,100,0 4,002,100,00


000 00 0

EPS 1.08 1.13 1.17 1.10 1.15 1.02

70% Stock - 30% Debt

Recession Normal Boom

EBIT 10,000,000 15,000,000 20,000,000

Interest 5,400,000,000 5,400,000,000 5,400,000,000

EBT 5,390,000,000 5,385,000,000 5,380000,000


Ford Motor Company 36

Taxes 2,102,100,000 2,100,150,000 2,098,200,000

EAT 3,287,900,000 3,284,850,000 3,281,800,000

Shares 4,197,995,552 4,197,995,552 4,197,995,552

EPS 1.10 1.13 1.16

70% Stock - 30% Stock

Recession Normal Boom

EBIT 10,000,000 15,000,000 20,000,000

Interest 1,260,000,000 1,260,000,000 1,260,000,000

EBT 1,250,000,000 1,245,000,000 1,240,000,000

Taxes 487,500,000 485,550,000 483,600,000

EAT 762,500,000 759,450,000 756,400,000

Shares 4,086,055,224 4,086,055,224 4,086,055,224

EPS 1.3 1.6 1.9

This analysis shows that the common stock is the best option for Ford Motor Company

to persuade since the earnings per share is close to highest compared to the debt financing and

the debt/stocks. From the first two tables it shows how close they are in the earnings per share

normal and boom category by a difference of one or a few numbers. The debt and stock tables

are far from the recession to the boom from 1.3 to 1.16.
Ford Motor Company 37

Projected Financial Statement

Income Statement
Ford Motor Company 38

The projected income statement above shows the data from 2014 to 2018 expected to

increase more than 46 percent of better programs for the company and more advanced vehicles.

Expenses should vary to know if the taxes increase or decrease over the next few years from

the graph being unsteady from the past years.

Conclusion

In conclusion, Ford Motor Company will be successful if they continue to grow and have the

right management for each department to run the company to the suggested strategies in the

departments of marketing, operations and finance. Understanding the importance of helping the

community around the world to the improvements of customer needs with the company. Expansion

of many more opportunities will help it to succeed in the future. Being clear with plans to succeed in

reaching goals for the company. Having the right amount of funding to help within the company

and the benefits for advancement for it.


Ford Motor Company 39

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Retrieved October 23, 2020, from http://fernfortuniversity.com/term-papers/porter5/analysis/648-

ford-motor-company.php Department, S. (n.d.). Ford Motor Company SWOT Analysis Matrix

(Strengths, Weakness, Opportunities, Threats). Retrieved October 23, 2020, from

http://fernfortuniversity.com/term-papers/swot/nyse/648-ford-motor-company.php

D, N. (2016, May 20). 2015 Ford GT: Ford. Retrieved November 16, 2020, from

https://www.supercars.net/blog/2015-ford-gt/

Ferguson, E. (2017, February 05). Ford Motor Company: Five Forces Analysis (Porter's Model).

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2020, from https://www.msn.com/en-us/money/stockdetails/nys-f/fi-a1sjw7

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us/money/stockdetails/nys-f/fi-a1sjw7

Ford Motor PE Ratio 2006-2020: F. (n.d.). Retrieved November 06, 2020, from

https://www.macrotrends.net/stocks/charts/F/ford-motor/pe-ratio
Ford Motor Company 40

Ford Motor Revenue 2006-2020: F. (n.d.). Retrieved November 18, 2020, from
https://www.macrotrends.net/stocks/charts/F/ford-motor/revenue
Ford SWOT Analysis (5 Key Strengths in 2020). Retrieved November 06, 2020, from

https://strategicmanagementinsight.com/swot-analyses/ford-swot-analysis.htm

Glon, R. (n.d.). The greatest rivalries in the automotive industry. Retrieved November 16, 2020,

from https://www.autocar.co.uk/slideshow/greatest-rivalries-automotive-industry

Jurevicius, O. (2020, January 10). Ford SWOT Analysis (5 Key Strengths in 2020). Retrieved

November 06, 2020, from https://strategicmanagementinsight.com/swot-analyses/ford-swot-

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automobile industry. Retrieved November 16, 2020, from

https://marketrealist.com/2015/02/suppliers-power-increasing-automobile-industry/

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Login. (n.d.). Retrieved November 18, 2020, from

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become-most-trusted-mobility-company.html

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06, 2020, from https://finance.zacks.com/undervalue-overvalue-stocks-2451.html

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company-stock.aspx
Ford Motor Company 41

Naughton, K. (2019, June 27). Ford Will Close Six European Plants as Part of Global Downsizing.

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statement-mission-statement

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https://www.fordfund.org/employee-volunteering/bill-ford-better-world-challenge

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Appendix A

Ford Motor Company Income Statement

Income Statement

Fiscal year is January-December.

All values USD Millions. 2019 2018 2017 2016 2015


Ford Motor Company 42

Sales/Revenue 155,900 160,338 156,776 151,800 149,558

Sales Growth -2.77% 2.27% 3.28% 1.50% -

Cost of Goods Sold (COGS) incl.


136,790 137,582 132,824 128,725 119,556
D&A

COGS excluding D&A 128,300 129,274 124,371 120,008 111,590

Depreciation & Amortization


8,490 8,308 8,453 8,717 7,966
Expense

Depreciation 9,689 9,280 9,122 9,023 7,993

Amortization of Intangibles (1,199) (972) (669) (306) (27)

COGS Growth -0.58% 3.58% 3.18% 7.67% -

Gross Income 19,110 22,756 23,952 23,075 30,002

Gross Income Growth -16.02% -4.99% 3.80% -23.09% -

Gross Profit Margin 12.26% - - - -

SG&A Expense 18,561 19,603 19,527 19,496 21,699

Research & Development 7,400 8,200 8,000 7,300 6,700

Other SG&A 11,161 11,403 11,527 12,196 14,999

SGA Growth -5.32% 0.39% 0.16% -10.15% -

Other Operating Expense - - - - 417

EBIT 549 3,153 - 3,579 7,886

Unusual Expense 181 (24) 197 (1,163) (969)

Non Operating Income/Expense (829) 1,616 3,678 1,244 413


Ford Motor Company 43

Non-Operating Interest Income 809 667 459 291 309

Equity in Affiliates (Pretax) 32 123 1,201 1,780 1,818

Interest Expense 1,020 1,238 1,407 1,261 1,143

Interest Expense Growth -17.61% -12.01% 11.58% 10.32% -

Gross Interest Expense 1,020 1,238 1,407 1,288 1,163

Interest Capitalized - - - 27 20

Pretax Income (640) 4,345 8,159 6,796 10,252

Pretax Income Growth -114.73% -46.75% 20.06% -33.71% -

Pretax Margin -0.41% - - - -

Income Tax (724) 650 402 2,189 2,881

Income Tax - Current Domestic (68) 69 (40) (110) 92

Income Tax - Current Foreign 738 690 868 630 572

Income Tax - Deferred Domestic (1,324) (348) (1,019) 1,548 1,745

Income Tax - Deferred Foreign (70) 239 593 121 472

Consolidated Net Income 84 3,695 7,757 4,607 7,371

Minority Interest Expense 37 18 26 11 (2)

Net Income 47 3,677 7,731 4,596 7,373

Net Income Growth -98.72% -52.44% 68.21% -37.66% -

Net Margin 0.03% - - - -


Ford Motor Company 44

Net Income After Extraordinaries 47 3,677 7,731 4,596 7,373

Net Income Available to Common 47 3,677 7,731 4,596 7,373

EPS (Basic) 0.01 0.92 1.93 1.15 1.84

EPS (Basic) Growth -98.73% -52.33% 67.83% -37.50% -

Basic Shares Outstanding 3,972 3,974 3,975 3,973 3,969

EPS (Diluted) 0.01 0.92 1.93 1.15 1.84

EPS (Diluted) Growth -98.72% -52.44% 68.25% -37.62% -

Diluted Shares Outstanding 4,004 3,998 3,998 3,999 4,002

EBITDA 9,039 11,461 12,878 12,296 15,852

EBITDA Growth -21.13% -11.00% 4.73% -22.43% -

EBITDA Margin 5.80% - - - -

EBIT 549 3,153 - 3,579 7,886

Appendix B
Ford Motor Company 45

Ford Motor Company Balance Sheet

Balance Sheet

Fiscal year is January-

December. All values USD

Millions. 2019 2018 2017 2016 2015

Cash & Short Term


34,651 33,951 38,927 38,827 35,176
Investments

Cash Only 17,504 16,718 18,492 15,905 14,272

Short-Term Investments 17,147 17,233 20,435 22,922 20,904

Cash & Short Term


2.06% -12.78% 0.26% 10.38% -
Investments Growth

Cash & ST Investments /


13.40% 13.23% 15.06% 16.32% 15.64%
Total Assets

Total Accounts Receivable 63,139 65,812 63,049 57,591 101,975

Accounts Receivables, Net 62,888 65,548 62,809 57,368 101,975

Accounts Receivables, Gross 63,579 66,231 63,818 58,244 102,348

Bad Debt/Doubtful
(691) (683) (1,009) (876) (373)
Accounts

Other Receivables 251 264 240 223 -

Accounts Receivable
-4.06% 4.38% 9.48% -43.52% -
Growth
Ford Motor Company 46

Accounts Receivable
2.47 2.44 2.49 2.64 1.47
Turnover

Inventories 10,786 11,220 11,176 8,898 8,319

Finished Goods 6,384 6,684 6,779 5,943 5,254

Raw Materials 4,402 4,536 4,397 3,843 4,005

Progress Payments &


- - - (888) (940)
Other

Other Current Assets 5,471 3,666 3,649 3,145 -

Miscellaneous Current
5,471 3,666 3,649 3,145 -
Assets

114,04 116,80
Total Current Assets 114,649 108,461 145,470
7 1

Net Property, Plant &


67,114 65,297 63,562 60,901 57,256
Equipment

Property, Plant & Equipment 103,90


101,683 99,422 94,319 89,316
- Gross 2

Buildings 11,900 11,477 11,096 10,308 9,942

Land & Improvements 421 445 411 391 344

Machinery & Equipment 38,939 38,720 37,533 34,149 33,164

Construction in Progress 1,710 2,066 2,608 2,170 1,750

Computer Software and


3,691 3,349 3,118 2,803 2,241
Equipment
Ford Motor Company 47

Leased Property 33,386 33,557 32,659 32,823 31,687

Other Property, Plant &


12,440 12,069 11,997 11,675 10,188
Equipment

Accumulated Depreciation 36,788 36,386 35,860 33,418 32,060

Total Investments and


3,894 3,148 3,594 3,523 3,224
Advances

LT Investment - Affiliate
3,719 2,959 3,448 3,523 3,224
Companies

Other Long-Term
175 189 146 - -
Investments

Long-Term Note Receivable 53,703 55,544 56,182 49,924 209

Intangible Assets 278 442 288 248 124

Net Goodwill 278 264 75 50 -

Net Other Intangibles - 178 213 198 124

Other Assets 7,638 7,048 7,307 5,189 7,133

Tangible Other Assets 7,638 7,048 7,307 5,189 7,133

258,53 258,49
Total Assets 256,540 237,951 224,925
7 6

Assets - Total - Growth 0.78% -0.76% 8.63% 5.79% -

Asset Turnover 0.61 - - - -

Return On Average Assets 0.02% - - - -


Ford Motor Company 48

Liabilities & Shareholders' Equity

All values USD Millions. 2019 2018 2017 2016 2015

ST Debt & Current Portion LT


54,313 53,493 51,621 49,669 42,998
Debt

Short Term Debt 14,399 15,319 18,549 16,654 12,941

Current Portion of Long


39,914 38,174 33,072 33,015 30,057
Term Debt

Accounts Payable 20,673 21,520 23,282 21,296 20,272

Accounts Payable Growth -3.94% -7.57% 9.33% 5.05% -

Other Current Liabilities 23,146 20,556 19,697 19,316 17,992

Accrued Payroll 2,374 2,298 2,238 2,065 2,130

Miscellaneous Current
20,772 18,258 17,459 17,251 15,862
Liabilities

Total Current Liabilities 98,132 95,569 94,600 90,281 81,262

Current Ratio 1.16 1.20 1.23 1.20 1.79

Quick Ratio 1.05 1.08 1.12 1.10 1.69

Cash Ratio 0.35 0.36 0.41 0.43 0.43

Long-Term Debt 102,408 100,720 102,666 93,301 89,856

Long-Term Debt excl.


101,280 100,720 102,666 93,301 89,856
Capitalized Leases

Non-Convertible Debt 101,280 100,720 102,666 93,301 89,856


Ford Motor Company 49

Capitalized Lease Obligations 81 - - - -

Provision for Risks & Charges 16,722 15,723 16,892 16,915 15,929

Deferred Taxes (11,373) (9,815) (9,947) (9,014) (11,007)

Deferred Taxes - Credit 490 597 815 691 502

Deferred Taxes - Debit 11,863 10,412 10,762 9,705 11,509

Other Liabilities 7,555 7,865 7,819 7,480 8,625

Other Liabilities (excl.


3,364 3,880 3,990 3,793 5,792
Deferred Income)

Deferred Income 4,191 3,985 3,829 3,687 2,833

Total Liabilities 225,307 220,474 222,792 208,668 196,174

Total Liabilities / Total Assets 87.15% 85.94% 86.19% 87.69% 87.22%

Common Equity (Total) 33,185 35,932 35,578 29,170 28,642

Common Stock Par/Carry


41 41 41 41 41
Value

Additional Paid-In
22,165 22,006 21,843 21,630 21,421
Capital/Capital Surplus

Retained Earnings 20,320 22,668 21,906 15,634 14,414

Cumulative Translation

Adjustment/Unrealized For. (4,626) (4,800) (4,277) (4,593) (3,570)

Exch. Gain

Unrealized Gain/Loss 71 (59) (48) (14) (6)


Ford Motor Company 50

Marketable Securities

Other Appropriated
(3,173) (2,507) (2,634) (2,406) (2,681)
Reserves

Treasury Stock (1,613) (1,417) (1,253) (1,122) (977)

Common Equity / Total


12.84% 14.01% 13.76% 12.26% 12.73%
Assets

Total Shareholders' Equity 33,185 35,932 35,578 29,170 28,642

Total Shareholders'
12.84% 14.01% 13.76% 12.26% 12.73%
Equity / Total Assets

Accumulated Minority Interest 45 134 126 113 109

Total Equity 33,230 36,066 35,704 29,283 28,751

Liabilities & Shareholders'


258,537 256,540 258,496 237,951 224,925
Equity

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