Question
Company analysis.Given the financial data below: General Motors Ford Motor Company Sales $155,303 $146,925 EBIT $7,634 $7,705 Interest Expense $399 $747 Net Income $5,342 $7,172
Company analysis.Given the financial data below:
General Motors | Ford Motor Company | |||
Sales | $155,303 | $146,925 | ||
EBIT | $7,634 | $7,705 | ||
Interest Expense | $399 | $747 | ||
Net Income | $5,342 | $7,172 | ||
Current Assets | $81,485 | $131,443 | ||
Total Assets | $166,309 | $201,987 | ||
Current Liabilities | $62,432 | $19,598 | ||
Equity | $42,588 | $26,256 | ||
Values are expressed in millions of dollars. |
The times interest earned ratio for General Motors is
enter your response here.
(Round to four decimal places.)
The times interest earned ratio for Ford Motor Company is
enter your response here.
(Round to four decimal places.)
The current ratio for General Motors is
enter your response here.
(Round to four decimal places.)
The current ratio for Ford Motor Company is
enter your response here.
(Round to four decimal places.)
The total asset turnover ratio for General Motors is
enter your response here.
(Round to four decimal places.)
The total asset turnover ratio for Ford Motor Company is
enter your response here.
(Round to four decimal places.)
The financial leverage ratio for General Motors is
enter your response here.
(Round to four decimal places.)
The financial leverage ratio for Ford Motor Company is
enter your response here.
(Round to four decimal places.)
The profit margin ratio for General Motors is
enter your response here%.
(Round to two decimal places.)
The profit margin ratio for Ford Motor Company is
enter your response here%.
(Round to two decimal places.)
The return on equity for General Motors is
enter your response here%.
(Round to two decimal places.)
The return on equity for Ford Motor Company is
enter your response here%.
(Round to two decimal places.)
Which company would you invest in, either as a bondholder or as a stockholder?The best company to invest in appears to be
A. General Motors
OR
B. Ford Motor Company
with its higher ROE and most of its financial ratios are higher than the ratios of the other firm.
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