Ford Financial Report

The financial report will show the investor with a clear representation of the company’s current status as well as future projection in order to establish investment opportunities. Specifically, this report examined Ford Motor Company's financial ratios and other factors using a trend table over the past three years. In evaluating Ford Motor Company, a close look will be given to the sales by the company, profits, the total assets, liabilities, equity and financial ratios.

Based on the Horizontal and Vertical analysis, the Ford Motor Company seems to be improving in recent years. The company’s retained earnings increased from -$13,599 million in 2009 to $12,985 million in 2011. It was a big improvement of 195% in retained earnings after 3 years of operation. This means the company started gaining more profit from market shares in the automobile industry. Ford Motor’s revenue increased as well at a rate of 115% from $118,308 million in 2009 to $136,264 million in 2010.

A relative balance sheet determines the balance of assets and liabilities on different terms and also the scale of their increase or decrease within a period can disclose about activities and trend of changes in the financial position of a company. This supports in estimating about the situation of the business in future. One concerned aspect was the company’s long term debt has dropped from $132,441 million in 2009 to only $99,488 million in 2011. This demonstrates that the company wants to stop borrowing aggressively from the bank and uses the earing profit to finance itself instead. Relative common size income statement for different financial periods contributes to indicate the activities in diverse factors over the past years. Cost of goods sold always account for the largest share for the company.

In 2011, Ford Motor Company’s current ratio is 7.05 which mean for every $1 in current liabilities, Ford has $7.05 in current asset. Therefore, the company is able to meet their short-term