Complete the following two sections for Ford
Motor Company.
Section 3: Historical Financial Analysis This is where you will include a detailed and descriptive explanation of the three financial statements and all ratios (include a screenshot in this document) for the last 3-5 years as they relate to the overall health of the company. State what happened and why it happened. Tell a story. You can find these in various sections of the Form 10-K, including the Management's Discussion and Analysis' section. For the ratios, state the industry averages, the competitors ratios, and how the company performs in comparison to the others. Is this positive or negative? Section 4: Financial Projections Complete the financial projections (3-5 years) in a separate excel workbook. FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES CONSOLIDATED INCOME STATEMENTS (in millions) For the Years Ended December 31, 2018 2019 2020 $ 5,653 3,927 1.474 88 Financing revenue Operating teases Retail financing Dealerfinancing Othefinancing Total financing revence Depreciation on vehicles subject to operating leaves Interest expense Net financing margin Other revenue Insurance premiumseamed Fre based tbvenue and other Total financing margin and other revenue Expenses Operating expenses Provision for credito Insurance AS Total expenses 5,795 3,891 2,207 84 11,977 (3,973) (3,930) 4,074 5,899 3,958 2,265 96 12,218 (3,635) (4,389) 4,194 11,142 (3,235) (3,402) 4,505 143 167 238 4.470 182 223 4,599 177 4,825 1,330 828 1429 426 97 1.932 1.416 298 103 1.815 2,240 Otherincome, nel 30 214 23 2.000 income before income taxes Provision for(Bunetit from income taxes Net income 2,627 403 2.224 2.998 770 2.228 $ 5 1,924 FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (in millions) December 31 2019 December 31, 2020 $ 9,067 $ 14,349 4,860 3,296 ASSETS Cash and cash equivalents Mariotable securities Finance receivables, net Retail installmentcontracts, dealer financing, and other financing Finance leases Total finance receivables, net of allowance for credit102es of $513 and $1,305 Net investment in operating leases Notes and accounts receivable from affiliated companies Derivative financial instruments Assets held-for-sale Other assets Total assets 106,131 8,186 114,317 27,659 863 1.128 1,698 3,398 161,426 97,043 8,027 105,070 26,655 853 2,601 36 4,593 159,017 $ $ LIABILITIES Accounts payable Customer deposits, dealer reserves and other Affiliated companies Total accounts payable $ $ 1,002 421 1,423 140,029 2,593 356 1,087 490 1,577 137,677 2,907 524 Debt Deferred income taxes Derivativo financial instruments Liabilities hold-for-sale Otherliabilities and deferred revenue Total liabilities 2,633 147,079 2,306 144,991 SHAREHOLDER'S INTEREST Shareholder's interes Accumulated other comprehensive Income/(05) Retained eaming Total shareholder's interest Total liabilities and shareholder's interest 5,227 (785) 0,905 14,347 161,426 5,227 (413) 9,212 14,026 159,017 $ $ FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) For the Years Ended December 31, 2018 2019 2020 Cash flows from operating activities Net income 2.224 2,228 1,924 Adjustments to reconcile net income to netcat provided by operations Provision for credit loses 428 296 Depreciation and amortization 4,841 4.427 3,984 Amortization of upfront interest supplements (2,041) (2.147) 2,222) Not change in finance and wholesale receivabloshold for solo (300) (74) Not change in defomed income taxes 259 37 379 Not change in other assets (276) 132 (930) Not change in otherljabilities 115 137 228) All other operating activities 155 103 Not cash provided by/ (used in) operating activities 5,703 4,913 3,749 828 88 (44,384) 42,553 (14,306) 9.223 2.661) (38.881) 42,011 (12.990) 9.332 1.752 (41.218) 40,102 (11,331) 9,500 12.752 Cash flows from Investing activities Purchases of finance receivables Principal collections of finance receivables Purchases of operating te vehicles Proceedsfrom termination of operating cose vehicles Net change in wholome receivables and other shon-duration recevables Proceedsfrom tale of business Purchases of marketable securities Proceedsfrom sales and maturities of marotable securities Settlements of darivatives All other investing activities Netcash provided by tuned in) invefing activities Cash flows from financing activities Proceeds from ances of long-term debt Principal payments on long-tem debt Change in short-term debt.net Cath distributions to parent All other financing activities Net cash provided by/tuwd infinancing acties (3.632) 5,171 226 102 (7.708) (5.883) 3,931 221) (56) (1.005) (10,978) 2,436 11521 71 9,532 41.743 (44,558) 49.954 (42.530) 22.203) 2.723) 144,865) 1.278 (2.000) (116) 2,415) (107) 7,032) 2.287 Effect of exchange rate changes on chath givalents, and sted cash 2in 50 279 Net Increase (decrease in cash.cash equivalents, and restricted cash 05 5,728 5 Cash, cash equivalents and restricted cashet beginning of period Net increase (decrease in cash, cash equivalents and restricted cash Cash.cash equivalents and restricted ceshatend of period 9532 85 9.747 (470) 9.260 9.208 5,720 14.990 5 $ Section 3: Historical Financial Analysis This is where you will include a detailed and descriptive explanation of the three financial statements and all ratios (include a screenshot in this document) for the last 3-5 years as they relate to the overall health of the company. State what happened and why it happened. Tell a story. You can find these in various sections of the Form 10-K, including the Management's Discussion and Analysis' section. For the ratios, state the industry averages, the competitors ratios, and how the company performs in comparison to the others. Is this positive or negative? Section 4: Financial Projections Complete the financial projections (3-5 years) in a separate excel workbook. FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES CONSOLIDATED INCOME STATEMENTS (in millions) For the Years Ended December 31, 2018 2019 2020 $ 5,653 3,927 1.474 88 Financing revenue Operating teases Retail financing Dealerfinancing Othefinancing Total financing revence Depreciation on vehicles subject to operating leaves Interest expense Net financing margin Other revenue Insurance premiumseamed Fre based tbvenue and other Total financing margin and other revenue Expenses Operating expenses Provision for credito Insurance AS Total expenses 5,795 3,891 2,207 84 11,977 (3,973) (3,930) 4,074 5,899 3,958 2,265 96 12,218 (3,635) (4,389) 4,194 11,142 (3,235) (3,402) 4,505 143 167 238 4.470 182 223 4,599 177 4,825 1,330 828 1429 426 97 1.932 1.416 298 103 1.815 2,240 Otherincome, nel 30 214 23 2.000 income before income taxes Provision for(Bunetit from income taxes Net income 2,627 403 2.224 2.998 770 2.228 $ 5 1,924 FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (in millions) December 31 2019 December 31, 2020 $ 9,067 $ 14,349 4,860 3,296 ASSETS Cash and cash equivalents Mariotable securities Finance receivables, net Retail installmentcontracts, dealer financing, and other financing Finance leases Total finance receivables, net of allowance for credit102es of $513 and $1,305 Net investment in operating leases Notes and accounts receivable from affiliated companies Derivative financial instruments Assets held-for-sale Other assets Total assets 106,131 8,186 114,317 27,659 863 1.128 1,698 3,398 161,426 97,043 8,027 105,070 26,655 853 2,601 36 4,593 159,017 $ $ LIABILITIES Accounts payable Customer deposits, dealer reserves and other Affiliated companies Total accounts payable $ $ 1,002 421 1,423 140,029 2,593 356 1,087 490 1,577 137,677 2,907 524 Debt Deferred income taxes Derivativo financial instruments Liabilities hold-for-sale Otherliabilities and deferred revenue Total liabilities 2,633 147,079 2,306 144,991 SHAREHOLDER'S INTEREST Shareholder's interes Accumulated other comprehensive Income/(05) Retained eaming Total shareholder's interest Total liabilities and shareholder's interest 5,227 (785) 0,905 14,347 161,426 5,227 (413) 9,212 14,026 159,017 $ $ FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) For the Years Ended December 31, 2018 2019 2020 Cash flows from operating activities Net income 2.224 2,228 1,924 Adjustments to reconcile net income to netcat provided by operations Provision for credit loses 428 296 Depreciation and amortization 4,841 4.427 3,984 Amortization of upfront interest supplements (2,041) (2.147) 2,222) Not change in finance and wholesale receivabloshold for solo (300) (74) Not change in defomed income taxes 259 37 379 Not change in other assets (276) 132 (930) Not change in otherljabilities 115 137 228) All other operating activities 155 103 Not cash provided by/ (used in) operating activities 5,703 4,913 3,749 828 88 (44,384) 42,553 (14,306) 9.223 2.661) (38.881) 42,011 (12.990) 9.332 1.752 (41.218) 40,102 (11,331) 9,500 12.752 Cash flows from Investing activities Purchases of finance receivables Principal collections of finance receivables Purchases of operating te vehicles Proceedsfrom termination of operating cose vehicles Net change in wholome receivables and other shon-duration recevables Proceedsfrom tale of business Purchases of marketable securities Proceedsfrom sales and maturities of marotable securities Settlements of darivatives All other investing activities Netcash provided by tuned in) invefing activities Cash flows from financing activities Proceeds from ances of long-term debt Principal payments on long-tem debt Change in short-term debt.net Cath distributions to parent All other financing activities Net cash provided by/tuwd infinancing acties (3.632) 5,171 226 102 (7.708) (5.883) 3,931 221) (56) (1.005) (10,978) 2,436 11521 71 9,532 41.743 (44,558) 49.954 (42.530) 22.203) 2.723) 144,865) 1.278 (2.000) (116) 2,415) (107) 7,032) 2.287 Effect of exchange rate changes on chath givalents, and sted cash 2in 50 279 Net Increase (decrease in cash.cash equivalents, and restricted cash 05 5,728 5 Cash, cash equivalents and restricted cashet beginning of period Net increase (decrease in cash, cash equivalents and restricted cash Cash.cash equivalents and restricted ceshatend of period 9532 85 9.747 (470) 9.260 9.208 5,720 14.990 5 $
