Financial Analysis Ford Motor Company

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MBA 520 FINAL PROJECT Ford Motor Company (Ford) is an American multinational automaker headquartered in Dearborn, Michigan that manufacturers and distributes automobiles across six continents. Ford was founded by Henry Ford on June 16, 1903 and is listed on the New York Stock Exchange. Ford is the 2nd largest United States based automaker and ranks fifth in the world based on 2012 sales. The current President of Ford Motor Company is Alan Mulally who has been with the company since 2006, under his leadership Ford has experienced a significant turn-around both in its product line and financial performance. The following analysis will review how Ford Motor Company is currently performing as well as include information related to Ford's position in the marketplace relative to its competition. Financial Analysis In 2013 Ford delivered strong financial results achieving 18 straight quarters of operating profit and its fourth year in a row of positive net income. Ford had sales revenue of $146 billion in 2013 which was a $13.3 billion dollar increase from 2012 and reported net income after tax of $7.1 billion dollars which was an increase of $1.5 billion dollars from 2012. This resulted in earnings per share of $1.76 for the shareholders of Ford which was a $0.34 increase from 2012. What is equally impressive is that Ford generated positive cash flow of $6.1 billion in 2013 which was $2.7 billion dollars more than in 2012 "Ford Motor Company Financial Earning Reports & SEC Filings for Ford Investors",. Now these results certainly can give the indication that Ford is a financially strong company however further analysis is needed before final conclusions can be drawn. Following is a deeper look into Ford's overall financial and operating condition. Market Results: Ford Motor Company operates in four major geographical areas of the
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