Financial statements for Ford Motor Company. Take the two years given and perform the required financial ratios listed below. First compare the ratios of each company for the past two years to each other, then compare the two companies to each other.In comparing the ratios you will need to discuss which year and which company has a better ratio and why you think that.

1)What is the ratio used for, what is it's purpose

2)Write out formula

3)Fill out formula using the two years financial statement information for both companies

FORD MOTOR COMPANY AND SUBSIDIARIES CONSOLIDATED INCOME STATEMENT (in millions, except per share amounts) For the years ended December 31, 2015 2016 2017 Revenues Automotive 140,566 $ 141,546 $ 145,653 Financial Services 8,992 10,253 11,113 Other 10 Total revenues (Note 4) 149.558 151 800 156,776 Costs and expenses Cost of sales 124,446 126,183 131,332 Selling, administrative, and other expenses 10,763 10,972 11,527 Financial Services interest, operating, and other expenses 7,368 8,904 9.10 Total costs and expenses 142,577 146,059 151,963 Interest expense on Automotive debt 773 894 1,133 Non-Financial Services other income/(loss), net (Note 5) 1.854 2691 3,060 Financial Services other income/(loss), net (Note 5) 372 438 207 Equity in net income of affiliated companies 1,818 1,780 1,201 Income before income taxes 10.25 3,796 8,148 Provision for/(Benefit from) income taxes (Note 7) 2,681 2.185 520 Net income 7,371 4,607 7,628 Less: Income/(Loss) attributable to noncontrolling interests (2) 26 Net income attributable to Ford Motor Company 7,373 4,596 7,502 EARNINGS PER SHARE ATTRIBUTABLE TO FORD MOTOR COMPANY COMMON AND CLASS B STOCK (Note 8) Basic income S $ 1.16 1.91 Diluted income 1.84 1.15 1.90 Cash dividends declared 0.60 0.65 0.65 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (in millions) For the years ended December 31, 2015 2016 2017 Net Income 7,371 $ 4,607 7,628 Other comprehensive income/(loss), net of tax (Note 21) Foreign currency translation (1.132) (1,024) 314 Marketable securities (6) (B) (34) Derivative instruments 227 219 (265) Pension and other postretirement benefits (81) 56 37 Total other comprehensive income/(loss), net of tax 992) (757) 52 Comprehensive income ,37 3,850 7,680 Less: Comprehensive income/(loss) attributable to noncontrolling interests (2) 10 24 Comprehensive Income attributable to Ford Motor Company 6,381 3,840 $ 7,656 The accompanying notes are part of the financial statementsFORD MOTOR COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET (in millions) December 31, 2016 Docomber 31, 2017 ASSETS Cash and cash equivalents (Note 9) 15,905 $ 18,492 Marketable securities (Note 9] 22,922 20,435 Financial Services france receivables, net (Note 10) 46,206 52,210 Trade and other receivables, less allowances of $392 and $412 11.102 10.509 Inventories (Note 12) 8.808 10,277 Other assets 3.380 3,88 Total current assets 105.461 115,902 Financial Services finance receivables, not (Note 10) 49.924 56, 182 Net investment in operating leases (Note 13) 28 82 28,235 Net property (Note 14) 32 072 35,327 Equity in net assets of affiliated companies (Note 15) 3,304 3,085 Deferred income taxes (Note 7) 9.705 10,973 Other asbets 5.658 8, 104 Total assets 237.951 $ 257,808 LIABILITIES Payables S 21,296 23,282 Other fabilities and deferred revenue (Nole 16) 19,316 19,697 Automotive debi payable within one year (Nole 18) 2,685 3,358 Financial Services debt payable within one year (Note 18) 48,804 8,285 Total current liabilities 84,600 Other iabilities and deferred revenue (Note 16) 24,395 24,711 Automotive long-term debt (Note 18) 13.222 12 57! Financial Services long-term debt (Note 18) 80,079 20 091 Deferred income taxes (Note 7) 891 815 Total liabilities 122 782 Redeemable noncontrolling interest (Note 20) EQUITY Common Stock, par value $.01 per share (3,867 million shares issued of 6 bilion authorized) 40 40 Class B Stock, par value $ 01 per share (71 million shares issued of 830 million authorized) Capital In excess of par value of stock 21,430 Retained earnings 15,634 3,216 Accumulated other comprehensive income/(loss) (Note 21) (7.013) (6,959) Treasury stock (1,122) (1,253) Total equity attributable to Ford Motor Company 29,170 34,890 Equity attributable to noncontrolling interests 17 Total equity #29,187 - 34,918 Total liabilities and oquity 237 951 257,804 The following table includes assets to be used to settle liabilities of the consolidated variable interest entides (VIEs). These assets and liabilities are included in the consolidated balance sheet above. See Note 22 for additional information on our VIEs December 31. December 31, 2016 2017 ASSETS Cash and cash equivalents 3.047 3,479 Financial Services finance receivables, not 80.857 58,250 Net investment in operating leases 11.761 11,503 Other assets 25 64 LIABILITIES Other liabilities and deferred revenue 5 Debt 13.730 46,437 The accompanying notes are part of the financial statements.Table of Comicups GENERAL MOTORS COMPANY AND SUBSIDIARIES Item &. Financial Statements and Supplementary Data CONSOLIDATED INCOME STATEMENTS (In millions, except per share amounts) Years Faded December 31, 2017 2016 2013 Net sales and revings 133.449 140306 139,164 GM Financial 12,13 8.979 5,861 Total net sales and revenue 145 569 149,184 135,725 Costs and expense Automotive cost of saks 114,169 120.499 11 1095 GM Financial interest operating and other expenses 11.128 8.369 5.304 Automotive selling, general and administrative experse 9,575 10.354 Total coats and expenses 135,572 139.212 130.167 Operaing incur 10.OL6 Automotive interest expense 575 563 423 Interest income and offer non-operating income, met 290 357 64 Gain on extinguishment of debt 4-19 Equity income (Note 8 2,132 2.281 2,193 Income before income lanes 11,363 12,008 RSTI Income tax expense (orneff) (Note 18) 11,530 2,739 (1.219) Imcvene from continuing operations 130 9.269 9.590 become (lost) from discontinued operations, net of the (Not }) (4.217) Net Income (ass) 9.268 9.415 Net loss attributable to noncontrolling interest 71 Net income (loss) attributable to stockholders 5 Net income (loss) attributable ta common stockholders S Earnings per share (Note 21) Basic earnings por common share - continuing opinions 0.21 6.12 $ Basic camings (loss] per common share - discontinued operations Bask comings (loss) par common share (2.43) $ 5.12 6.11 Weightial-average common shares oustanding - basic 1.465 1.586 Diluted camings por common shire - continuing operations 0.32 6.00 Diluted camings (loss] per common share - discontinued operations 2.82) 0.02 Diluted camings (loss] per common share (2.60) 5.91 Weighted average cumminun shires oustanding - diluted 1,492 1.370 1 640 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In millions) Years Ended December JL. 2017 2015 Net income (loss) (3,382) $ 9415 Other comprehensive income (loss], met of tax (Note 20) Foreign currency translation adjustments and other 147 1384) 19351 Defined benefit plets $70 1.01 1 Other comprehensive income (lou) root of his (1,353) 56 Comprehensive Income (less) 2,5457 Comprehensive loks attributable to noncontrolling impress 53 Comprehensive income (loss) attributable to sbackholders 2,545 8,133 9.724 Reference should be made to the boks to consolidated financial statements. 46GENERAL MOTORS COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In millions, except per share amounts) December 31, 1414 ASSETS Current Arts Cash and osh equivalent 15 512 5 12.514 Marketable securities [Note 4) 8.313 11841 Accounts and roks receivable (net of allowance of 5279 and $212) 8.164 Gild Financial receivables, net (Note 5, Note 12 at VIEs) 2052 16.127 Inventories (Noke 6) 10,60 11 040 Equipment on operating losses, not (Now ?) 1,106 1,110 Other current asse (Note 4; Note 12 at VIBs) 4,465 3,633 Current assets hold for sale (Note ]) ILIT Total current assets 58,744 Non-current Assets OM Financed nexisables, net (Now 5: Now 12 at VIEs) 21,208 17,801 Equity in net moacts of rainconsolidated affiliates (Note ] 9,073 3.996 Property, rest (Note 9) 36.253 32,603 Goodwill and intangible assets, not (Noko 11) 5.840 6,149 Equipment on operating leases, net (Note 7; Note 12 at VIEs) 43,832 84, 141 Deferred income taxes (Note 18) 21,544 33,172 Other asset (Note 4: Not 12 a VIES) 1,849 Non-current mascis held for sale (Note 3) 9.375 143.739 143.487 Total Assets 212.462 231,690 LIABILITIES AND EQUITY Current Liabilities Accounts payable (principally trade] Short-sorn debt and current portion of long-term debt (Note 14) Automotive 2.515 1,060 GM Financial (Note 12# VIE] 24.450 22,737 Accrand lishlies (Noke 1]) 15,996 25,393 Current liabilities held for sale (Nois 3) 12,135 Total current liabilities To,590 Non-current Liabilities Long-term debt (Nok 14) Automotive 10,537 9.509 GM Financed (Note 12 at VIE) 56.267 41,426 Postretirement benefits other than pensions (Note 16) 5.998 5,803 Pensions (Note 16) 13,746 15,2754 Other liabilities (Note 1!) 12415 Non-current liabilities held for sale ( Note ]) 7,626 Total non-current liabilities 13,434 Total Liabilities 176.282 173,615 Commitments and contingencies (Note (7) Equity (Note 20) Common mock, 50:01 par value 14 Additional paid-in spitd 25 371 26.943 Retained earnings 17.627 26 168 Accumulated otter comprehensive loss P 310) Total stockholders' equity 35,001 43.836 Noncontro Ding inkcrests 1,199 239 Total Equity 16,20 Total Liabilities and Equity 212,482 221 650