Essay on Ford: Ford Motor Company and Financial Ratio

Submitted By shoefrinzy
Words: 676
Pages: 3

By: Tashara Washington

MBA 561: Financial Accounting and Statement Analysis
Professor: Raj Warpehaski MBA
Final Project
December 18, 2012

It is no secret that the auto industry has taken a big hot over the past couple of years. American vehicles have been hit extremely hard over the past couple of years, huge companies such as Ford Motors and General Motors. They have been working hard to try to build their empires up and make some of that money back. The focus is: Is Ford on the right path doing everything they need to do to bring in more revenue or is there an area that could use a little more work to generate revenue. Ford Motor Company headquarters is in Michigan and Ford is in the automotive industry. They manufacture vehicles and they also distribute them. They are not just sold in the United States they are sold across the world. They have seventy plants worldwide and they employ over 100,000 employees worldwide. They also offer financial services, such as lender services, which is called Ford Motors Lenders Services. Ford Motor Company are definitely innovators. They now offer advanced fuel-saving technologies across a full line of vehicles, as well as a variety of electrified vehicles. Next year they will put out a EcoBoost engine, this will deliver up to 20 percent better fuel economy without sacrificing performance (Ford Website). This is going to save money on fuel and without losing any of its abilities to perform on the road, this is going to be on 90 percent of their America vehicles next year. As if reducing fuel cost was not enough, last year they doubled their investment in the development of wirelessly connected intelligent vehicles and they became the first automaker to build prototypes for demonstration across the U.S. (Ford Website). This was great because with doing this they made it safer on the roads and they also gave the most efficient route. With doing that they became the leader in the wireless communication technology. Ford is well on their way with fuel reduction ideas and high tech communication ideas. Looking at the income statement Ford is on the right track, the auto industry was hit bad and Ford put in a lot of effort to not let that stop them from bring in revenue. In 2010 they bought in less money than they did in 2011. In 2010 the yearly revenue was 128,954 million and they increased that in 2011 they made 136,264 million in revenue. They increased there revenue in 2011. The next question is