Ford Motor Company A Good Investment - 960 Words

Ford Motor Company became incorporated in 1903 with 12 investors and 1000 shares of 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 time (Our History, n.d.). Once the stock went public in 1956, Ford Motor Company had 300,000 owners. There were 10.2 million shares of stock available for the IPO. Today, Ford Motor Company has 1.8 billion outstanding shares (Henry, 2003). With so many outstanding shares of stock, is Ford Motor Company a good company to invest in? By analyzing the annual financial reports from 2013, 2014, and 2015, hopefully it will be determined to be a good investment. Listed is a table of a few valuation ratios, profitability ratios, and financial strength ratios for the past three years of Ford Motor Company. The valuation ratios are used to determine how well a company is doing. In 2013, Ford investors were willing to pay 8.5 times of Ford’s earnings to purchase a share. There was a large jump in in the price earnings ratio for 2014 to 20.12. Ford’s stock price in 2014 had gone up slightly over 2013, but there was a decrease in EPS due to lower net income and an increase in the numberShow MoreRelatedFord Motor Company Is A Good Investment Essay1448 Words   |  6 PagesStudent’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 statementsRead 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. I will further cover a financial analysis of Ford Motor Company, evaluate the businesses consolidated statements of incomeRead MoreFord Company Analysis873 Words   |  4 PagesCase Study: Ford Motor Company’s VEP Question 1 Go ahead with the Value Enhancement Plan The feature of having both cash and new share options makes the VEP have its strengths and makes an excellence choice for Ford Motor Company. The cash option solves the problem of Ford having massive amounts of extra cash. Since Ford has no profitable activities for the extensive amounts of cash, returning the excess cash to shareholders allows them to make profitable investments. Different from aRead MoreCase Study : Ford Motor Company984 Words   |  4 PagesI. Introduction of Firm Ford motor company has been business for over a hundred and ten years. Ford also has a manufacturing arm, a credit business and dealer licensing. Additionally the company operates in Europe, North Africa, the Middle East and Asia. 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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. This encompasses the income statement, the balance sheet, the cash flow, and the profitability and the liquidity ratios, which are established from December, 2012 until the third quarter (June to September), which means 5 years of ratio focus. TheseRead MoreFord Financial Analysis Essay1129 Words   |  5 PagesFord Motor Co Industry: Automobile (Auto Manufacturers – Major) Sector: Consumer Goods Products and Services: Ford Motor Company primarily develops, manufactures, distributes, and services vehicles and parts worldwide. Ford operates in two sectors: †¢ The Automotive sector: Offers vehicles primarily under the Ford (www.ford.com) and Lincoln (www.lincoln.com) brand names. This sector markets cars, trucks, and parts through retail dealers in North America, and through distributors andRead MoreCase Study : Ford Motor Company813 Words   |  4 PagesThe company our group chose to analyze was Ford Motor Company. They are based out of Michigan with 181,000 employees and 65 plants worldwide. They currently sell on six continents and sold 2,493,918 vehicles in 2013. The Ford Motor Company Brand also includes Lincoln but it is only sold in North America. There are many risk factors currently for the company, but a main one is the high fixed structural cost they have in place that are easily susceptible to losses in a turn down of the economyRead MoreFord Motor Company1472 Words   |  6 PagesFord Motor Company: A Business Analysis Mary J. Richardson MGT 521 January 30, 2012 Erick Espinosa Developing sound strategic plans to address the changing business climate is crucial to organizations operating in today’s global environment. Throughout its history, Ford Motor Company has developed effective strategic plans to adapt the business to the changing economy while addressing the needs of their customers and employees. By analyzing the company’s strategic planning, along with its