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Question Title:
Interpreting Financial Results
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<span style="font-size: 12.0pt; line-height: 200%; font-family: Times New Roman,serif;"> Founded in 1903, Ford Motor Company is now sharing over 100 years of history in car making. In 1913, Ford introduces a new production method in the auto industry. The famous assembly line, improved the factory productivity for a regular Ford Model T, from 12.5 hours to just 1.5 hours (corporate.ford.com). Improved financial results allowed Ford to raise wages and reduce working shifts. But that is now history. Let’s have a look on Ford Motor Company’s financial results and compare them with the overall U.S auto industry. In 2012, Ford accounted a total revenue of $133,559 billion. Income before taxes was $7,68 billion. In 2013, total revenue increased with about 10%, to $146,917 billion (146,917/133,559-1). Income before taxes XXX $X,04 billion. 2014 brought in $XXX,XXX billion XXXXX in XXXXXXX, with an XXXXXX XX $X,342 XXXXXXX. Revenues XXXXXXXXX XXXX XXXX to 2014 with an XXXXXXX of X%. During XXXX XXXX, the stock price had XXX XXXX point XX $13.08 in 2012, XX.02$ in 2013 XXX $18.12 in XXXX. XXX lowest point XXX at $8.XX in XXXX, $12.XX in XXXX and $XX.XX in XXXX. XXX numbers XXXX XXXXX XXX surely give XX a global XXXXXXXXXXX XX how XXXX is XXXXXXXX its operations, XXX we must XXXXXXXXX a set XX financial ratios. In XXXX XXX, we will XXXX a XXXX measurement of its XXXXXXXXX performance during the XXXX years. Return on XXXXXX is XXX first XXXXXXXXX XX XXXX XXXX on. This XXXXXXXXX XX calculated by XXXXXXXX the XXX XXXXXX XX stockholder’s equity. Only XXX the XXXXXXXXXX in XXXXXXXXXX (excluding XXXXXXXXX and Investment operations), XXXX Motor Company XXX a XX.52% in 2012, XX.12% in 2013 XXX 12.XX in 2014. XXXXX XXXXXXXXXX XXX calculated in every year XXXX XXXXXXX X until December XX (XXXXX-analysis-XX.XXX). XX can clearly XXXXXX that Ford is traveling a decreasing XXXXXXXXXXX XX the XXX indicator, making its XXXXXX less attractive XXX XXXXXXXXX. In XXX auto XXXXXXXXXXXXX, XXX XXX smaller average XXXXXX XXXX XXX ones recorded by Ford. In 2012, XXX XXX X.48%. 11,47% in XXXX and 12.37% in 2014. We can see that XXX Ford can be a better stock XXXXXXXXXX XXXX its competitors. XXX XXXXXXXXX XXXXXX margin XXXX decreased from 4.64% in XXXX XX X.XX% at the end of 2014. If profit XXXXXXX decreased, we should see XX Ford is XXXXX its XXXXX assets in an efficient XXX. In 2012, XXX XXX 2.XX%. in XXXX X.51% XXX in 2014 1.51%. XXXXX XXXXXXX are showing XX a XXXXXXXX in total XXXXXXXXXX. X XXXXX-XX for unprofitable assets or an XXXXXXXXXXX in efficiency XX welcomed. XX XXXXX XX profitability, the XXXX XXXXXX had an XXXXXXXXX XXXX of X.XX% in XXXX. In 2013, the auto XXXXXX improved for a 4.68%, XXXXXXX XXX growing XXXXX XX X.XX% in 2014. ROA indicators XXX the XXXX XXXXXX were X.14% in XXXX, 3.04% in XXXX XXX 3,14% in XXXX. XX can conclude XXXX XXXXX XXXXXXX XXXX Ford XXX XXXXXX XXXXXXX in the efficient asset utilization, XXXXXXXX XX XXX competitor. For XXXX, XXXX already closed XXX-quarters. All XXX performance XXXXXXXXXX analyzed XXXXX, are XX a growing trend. XXX XXX first quarter, closed on XXXXX 31, XXX was 12,51%. For the XXXXXX XXXXXXX, it grew XX 14.04%. XXX XXX profit XXXX from 2,XX% up to X,XX%. XXX Return XX XXXXXX XXXX slightly from 1.45% to 1.XX%. The XXXXXXXXX XXXXXX XXXX XXXX, XXXX 2.XX% to 2.9%. XXXX the XXXX XX XXX XXXX XXX this indicators, we can XXX that XXXX could XX a good XXXX-term stock XXXXXXXXXX. XXXXXXXXXX showed XX a XXXXXX XXXXXXXXXXX than other auto XXXXXXXXX. XXX XXXXXX XX assets indicator must XXXXXXX in order XX XXXXXXXX this XXXX XXXXX. Toxic or XXXXXX assets will affect XXXX-performing ones. XXX net profit is also XX a XXXXXXX trend, probably a financial result XX the new production policy XXXXXXX XXXXX 2012. XXXX is XXXXXXXXX reducing XXX XXXXXXXXXX platform, XXXXXXXX from the XX used in 2007 to a number of X platforms projected to be in XXX XXXXX 2016(XXXXXXXXX.ford.XXX). This will surely XXXXXX the return on assets indicator and XXXXXXXXXX the XXXXXXXXXXX profitability. Ford can innovate again. XXX’s XXX if it will pass again XXX challenge, like it did in XXXX XXXX the Model X. </span></p> <p class="MsoNormal" style="line-XXXXXX: 200%;"><span style="XXXX-size: XX.XXX; line-XXXXXX: 200%; font-XXXXXX: Times XXX Roman,XXXXX;"></span></p> <p XXXXX="MsoNormal" style="XXXX-height: 200%;"><span style="font-XXXX: 12.0pt; XXXX-XXXXXX: 200%; XXXX-XXXXXX: Times New Roman,serif;"></span></p> <p class="XXXXXXXXX" style="line-XXXXXX: 200%;"><span style="font-size: XX.XXX; line-height: XXX%; XXXX-family: Times New Roman,serif;"></span></p> <p XXXXX="XXXXXXXXX" style="line-XXXXXX: XXX%;"><span style="XXXX-size: XX.0pt; line-height: XXX%; font-XXXXXX: XXXXX New XXXXX,XXXXX;">XXXXXXXXXX: </span></p> <p XXXXX="XXXXXXXXX" style="XXXX-height: 200%;"><span style="font-XXXX: XX.0pt; XXXX-XXXXXX: XXX%; XXXX-family: Times XXX Roman,XXXXX;">XXXX Motor Company, Corporate website, Our History XXXXXXX, XXXXXXXXX on XXXXXX 29, 2015, from https://XXXXXXXXX.XXXX.XXX/company/XXXXXXX.html</span></p> <p XXXXX="MsoNormal" style="line-height: 200%;"><span style="XXXX-XXXX: 12.0pt; XXXX-height: XXX%; XXXX-XXXXXX: Times New Roman,serif;">Ford XXXXX Company, XXXX, Form XX-K XXXXXX for XXX, retrieved on XXXXXX XX, 2015, from http://XXXXXXXXX.ford.com/investors/reports-XXX-XXXXXXX/sec-filings.html </span></p> <p class="XXXXXXXXX" style="XXXX-height: 200%;"><span style="XXXX-XXXX: 12.XXX; XXXX-height: 200%; font-XXXXXX: XXXXX New XXXXX,serif;">Stock Analysis on Net, XXXX XXXXX Co. (F) XXXXXXX, XXXXXX, retrieved XX August XX, XXXX, XXXX https://www.stock-analysis-on.net/NYSE/Company/Ford-Motor-XX/Ratios</span></p> <p></p> <p class="XXXXXXXXX" style="XXXX-XXXXXX: XXX%;"><span style="XXXX-XXXX: XX.XXX; XXXX-height: 200%; font-family: Times New Roman,serif;"> </span></p>">
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