The Ford Motor Company operates three segments (Ford refers to its segments as sectors). Using the companys
Question:
The Ford Motor Company operates three segments (Ford refers to its segments as “sectors”). Using the company’s website, locate sector information for 2020 in the company’s 2020 annual report. Most of the information will be in the Financial Statements and related Notes to the Consolidated Financial Statements (found in the Form 10-K). The most relevant section will be Note 26, Segment Information.
Requirements
1. What are Ford’s reported sectors in its Balance Sheet and Income Statement? Gather data about each segment’s net sales, operating income, and identifiable assets.
2. Calculate the ROI for each segment.
3. Which segment has the highest ROI? Explain why.
4. If you were on the top management team and could allocate extra funds to only one division, which division would you choose? Why?
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