Question
A. Ford Motor Company is a publicly traded company and to analyze the financial position they are in besides just looking at their financial statements,
A. Ford Motor Company is a publicly traded company and to analyze the financial position they are in besides just looking at their financial statements, we will take a look at their stock history and the growth of the company. After looking at the stock reports of Ford Motor Company there was a summary included written by Wall Street analysts who spend their time researching and analyzing companies to see if the companies stocks are worth buying, holding and even selling from their expertise. It came to the conclusion that if you are looking into buying stocks from the Ford Motor Company that it would be a good idea to purchase. Obviously looking at just one piece of information should not make a final decision, so the next thing one can do is look at the expansion of the company. If a company is constantly growing and innovating their model it is a good sign that the companies finances are consistent with growth. Not only has Ford Motor Company been a company for over a hundred years but since the year 2011 Ford Motor Company has opened 14 assembly plants in countries across the world that include Brazil, China, Russia, India, Thailand and Romania. With the ability to expand to other countries shows that the companies financial are solid. After finding this information it seemed a little unusual to me that an American based company has decided to open up assembly plants in other countries across the world instead of opening the plants in America which would create hundreds of thousands of jobs. This could be a way to operate at a larger scale with a lower operating cost that potentially saves money for the company overall and makes it possible for Ford to sell their vehicles at a lower price than before.
Provide your commentary regarding the above statement and what you think about Ford Motor Companies financial position.
B. William Procter and James Gamble were business partners who started with a soap and candle business in 1837 that eventually grew into the largest and most profitable consumer goods company in the world. They market and sell many brands that range from personal health care, laundry care, and paper products. Just a couple of some of the brands they sell are: Bounty, Tide, and Crest. Procter and Gamble also set environmental and social responsibilities with long-term vision and short-term goals. They have focused on three core areas: water, waste, and climate. They achieved their short-term goal of a 20% water reduction within their manufacturing sites. More than half the manufacturing sites are zero waste to landfill, and continually to look for ways to improve packaging to reduce waste and ensure it can be recycled. Procter and Gamble continue to seek strategies and reductions in greenhouse gas emissions by using less energy and less carbon intense raw materials. Social responsibilities include providing disaster relief, supporting hygiene education and encouraging healthy habits to prevent illness and improve confidence. The total revenue for Procter and Gamble has increased to $4.1 billion in 2015 from $2.7 billion in 2012. The gross profit is $3.7 billion with an operating income of $1.3 billion. Listed on their financial statement I found unusual expense of $2.04 billion in 2015 which was a huge increase from the negative $1.39 billion in 2012. Research and development increased from $62 million to $1.2 billion in 2015. Long-term investments increased to $632 in 2015 and short-term debt is $0. This shows that this company is in stable financial standing and a great investment opportunity for investors.
Provide your commentary regarding the above statement and what you think about Proctor and Gamble's financial position.
THank you for your help and prompt response.
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