Company: Ford Motor

Company: Ford Motor

Introduction

As illustrated in part one of the business analyses, Ford Motor is a company that has strong roots in the U.S, but has struggled in the market against formidable foreign opposition. The company continues to survive, but it exhibits inconsistencies when examining the financial statements of this company. Ford does a good job of marketing and utilizes a strong advertising campaign by use of celebrity influence, but fails to serious rival many foreign made automobile companies. Ford does have a diverse range of products to entice all genres of consumers, but it fails to capture a significant share in some of its products. According to Consumer Reports, the Ford-F Series and Ford Fusion were among top selling automobiles for Ford in 2009 in the U.S market, but when put up against the international market the influence isn't as significant. From reviewing the trends and reports, Ford seems to be trending towards smaller and lighter cars to propel its future. The Ford Fusion Hybrid, Ford Fiesta and other hybrids and electric cars seem to be the primary focus in an economy that gas prices continue to soar and where going green is a growing trend. The company has had its share of hardship, but they continue to make strides as a company. Ford reported that in February 2012 their U.S sales increased 14 percent compared to 2011. In addition, Focus sales totaled over 23,000 in February which is a mark that hasn't been accomplished since 2000. They continue to grow in pickup sales and even the Escape has set record sales in February 2012. So as we continue with this analysis it is important to compare Ford as it ranks against U.S and foreign markets, but also look at it in a perspective of what direction this company is moving in and what is being done to propel this direction.

Fords Annual Income Statement

According to Ford's annual income statement per watch.com, it has a 52 week high of

$16.18 and low of $9.05. As of Friday it closed at $12.58 showing some inconsistency and

wavering interest. After reviewing 5 years of income statement Ford is trending to have a

productive 2012. The years 2007-2009 exhibited a steady decline of gross income, but 2010

showed a recovery of nearly 100% revenue from 16.89 billion to 2009 to 29.5 Billion. Last year

in 2011 Ford struggled to maintain their gross income showing a slight decline in gross income

of 1.28 billion. This gross income information is concerning because it's clear that that are

starting to lose gross income again. If this trend continues it would signify an impending struggle

to maintain their gross income without hopes of increasing it.

Ford Balance Sheet

After review fords balance sheet it is clear that their strategy is to reduce their total liabilities. Over the past year they have had a steady decline from owing 278 billion to owing only 163 billion, which is a decrease of 41%. This is a great, healthy trend and if this continues (which it has for the past 5 years) the next 5 years will be significantly financially healthy.

Cash Flow

Fords cash flow tends to be an area of concern. Over the past 5 years they have had a steady decline in net operating cash flow from 17 billion in 2007 to 9 billion in 2011. They are working with half the net cash flow they were working with 5 years ago in 2007. This means less money to pay employees which means layoffs. This is a statistic that signifies they are not financially healthy.

In summary,