Question
Ford Motor Company (2023) reported that as of December 31, 2023, it had cash and cash equivalents of $24,862 million and a receivables account after
Ford Motor Company (2023) reported that as of December 31, 2023, it had cash and cash equivalents of $24,862 million and a receivables account after allowances of $ 15,601 million. The receivables turnover ratio for Ford Motor Company for the year 2023, using total revenues, is approximately 11.25. Ford's 2023 profitability was measured on a share basis, with earnings per share (EPS) diluted at $1.08. Ford Motor Company's return on investment (ROI) for the whole company will be around 1.64% in 2023. This percentage shows how efficiently the company generates profit from its total assets.profitability, and use of equity investments to generate returns efficiently. A high turnover of receivables indicates adequate credit and collection processes, while positive EPS represents profitable operations (Murphy, 2024). Modest ROI numbers show positive returns from investments made into Ford's operations and investments. These metrics point to financial security for Ford by 2023 due to strong operational and financial management in place Ford Motor Company's Return on Equity (ROE) for 2023 is estimated at 10,07%. This percentage shows the company's efficiency in generating profit relative to its shareholders' equity. According to the accounting metrics, Ford Motor Company appears in good health.
Demonstrate how efficient receivables management work. Advise him some more preferable ways to work.
Step by Step Solution
3.34 Rating (154 Votes )
There are 3 Steps involved in it
Step: 1
Efficient receivables management is crucial for maintaining healthy cash flow and ensuring timely collection of outstanding debts Heres a breakdown of ...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started