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can someone explain to me what the ratio means and how it is calculated please? How would you describe Ford's comparative performance and financial positions?
can someone explain to me what the ratio means and how it is calculated please? How would you describe Ford's comparative performance and financial positions? Examine Ford's financial ratios. What does each ratio tell you about Ford's financial status? (demonstrate an excellent understanding of the ratios i.e. calculated and interpreted all the results accurately) I am very lost by this table. any explanation will be appreciated. Thank you!
EXHIBIT 4: COMPARATIVE FINANCIAL RATIOS OF FORD, TOYOTA, GENERAL MOTORS, AND HONDA, 2016-2017 Ford 2017 2016 Toyota 2017 2016 General Motors 2017 2016 Honda 2017 2016 0.43 0.41 1.08 0.34 0.34 0.55 0.31 0.81 0.68 0.76 0.29 0.39 0.31 0.42 0.89 1.23 1.20 0.89 1.21 1.03 112 1.13 127 Liquidity ratios Cash ratio Acid test ratio (Quick ratio) Current ratio Efficiency Days receivables Days payables Days of inventory Financial leverage Debt to total assets Leverage ratio Long-term leverage ratio Total debt to EBITDA Interest coverage ratio Profitability 146 61 27 27 57 24 92 37 94 36 76 34 7167 33 45 33 0.86 6.38 2.94 16.80 4.25 0.88 7.14 3.19 14.44 6.42 0.63 1.73 0.55 8.41 68.08 0.64 1.81 0.57 7.43 80.65 0.84 5.07 1.92 7.97 17.42 0.80 4.06 1.17 8.99 17.69 0.62 1.60 0.56 7.48 67.63 0.63 1.70 0.56 10.50 27.70 3.1% 1.4% 10.4% 8.5% 3.1% 5.2% 4.9% 1.9% 3.3% 11.0% 9.5% 3.8% 4.5% 3.1% 10.5% 3.8% 6.8% 17.6% 13.1% 7.2% 7.9% 6.6% 12.6% 4.8% 5.3% 20.4% 15.8% 10.1% 10.5% 8.1% -11.0% -1.8% -1.5% 21.1% 15.3% 6.9% 8.1% -2.7% 21.5% 4.5% 7.8% 19.2% 13.3% 6.7% 8.0% 6.3% 8.7% 3.3% 3.4% 22.4% 10.8% 6.0% 7.2% 4.4% 4.8% 1.9% 1.8% 22.4% 8.0% 3.5% 4.4% 2.4% Profitability Return on common equity Return on assets Return on invested capital Gross margin EBITDA margin Operating margin Pre-tax margin Net income margin Growth and valuation One-year sales growth One-year operating income growth One-year net income growth Enterprise multiples Enterprise value-to-sales Price earnings ratio (P/E) Activity ratio Asset turnover Accounts receivable turnover Inventory turnover Accounts payable turnover Cash conversion cycle (days) 3.3% -16.8% 0.7% -17.8% 7.8% -22.5% 5.1% -5.4% -2.4% 0.5% -12.9% 79.9% 6.4% 85.3% 11.7% -31.5% 64.0% 2.95 0.25 7.85 -37.7% 2.54 0.24 6.92 -12.1% 8 .99 1 .17 5.60 -3.0% 7.19 1.13 6.18 - 141.0% 141.0% 2.36 0.36 5.80 -2.7% 2.10 0.28 5.51 98.6% 7.32 0.79 9.82 -38.3% 9.17 0.73 16.11 0.61 2.50 13.67 6.366 108 0.64 13.67 15.18 .57 104 0.58 0.55 3.25 2.85 9.81 10.27 9.319.39 104 100 0.69 17.83 10.77 4.84 26 0.670.76 17.15 5.45 10.91 8.20 4.97 11.06 27 182 0.75 4.97 8.09 10.52 82Step by Step Solution
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