Take the two years given and perform the required financial ratioslisted below. First compare the ratios of each year 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. Justify your rationale and explain your findings in detail in your analysis. Write at least one paragraph discussing your results.You can do the assignment directly in this document by editing it and filling out the information then uploading it to Canvas, you may print this document and fill it out by hand and scan it and upload it to Canvas, or take pictures with your cell phone and upload it to Canvas.

1) What is the ratio used for, what is its purpose?

2) Write out formula

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

4) Your interpretation of ratio in at least one paragraph

2018 2017

Profitability

Earnings Per Share

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Return on Sales

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Return on Equity

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Leverage

Debt Ratio

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Debt to Equity Ratio

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Liquidity

Current Ratio

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Acid-Test Ratio

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Activity

Asset Turnover

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Inventory Turnover

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Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In millions, except per share amounts) December 31, 2017 December 31, 2016 S $ $ 15.512 8.313 8,164 20,521 10,663 1,106 4,465 12.574 11.841 8.700 16.127 11.040 1,110 3,633 11,178 76,203 68,744 21.208 9.073 36.233 5.849 42.882 23,544 4,929 ASSETS Current Assets Cash and cash equivalents Marketable securities (Note 4) Accounts and noiles receivable (niet of allwance of $278 and S212) GM Financial receivables, net (Note 5, Nole 12 at VIES) Inventories (Note 6) Equipment on operuing lenses, net (Note 7) Other current assets (Note 4; Note 12 at VIES) Current assets held for sale (Note 3) Total current snels Non-current Assets GM Financial receivables, not (Note 5, Note 12 at VIES) Equity in net assets of nonconsolidated affiliates (Note 8) Property, net (Notte 9) Goodwill and intangible assets, nid (Note 11) Equipment on ciperaling lexes, net (Note 7; Nate 12 Vilis) Deferred income taxes (Note 18) Outer assics (Note 4, No 12 : VIES) Non-current assets hell for sale (Note 3) Total non-current assets Total Assets LIABILITIES AND EQUITY Current Liabilities Accents prynble principally trade) Short-term debl and current policin of long-term dehl (Note 14) Automotive GM Financial (Note 12 at VIES) Accrued liabilities (Note 13) Current liabilities held for sale (Note 3) Total current linbilities Non-current Liabilities Long-term doht (Note 14) Automotive GM Financial (Note 12 at VIRS) Postretirement benefits other than pensions (Note 16) Pertsons (Note 16) Other liabilities (Note 13) Non-current liabilities held for sale (Note 3) Total on-Cutreist liabilities Total Liabilities Commitments and contingencies (Note 17) 17,001 8,996 32,603 6,149 34.342 33.172 3.849 9.375 145.487 221,690 143,738 212.482 5 s $ 23,929 $ 23,333 2.SIS 24,450 25.995 1,060 22,737 25,893 12,158 85,181 76,990 10,987 56,267 5,998 13,746 12,394 9,500 41,826 5.803 15,264 12.415 7,626 92,434 177.615 99,392 176,282 Equity (Note 20) Common stock, 30.01 par value Additional paid-in capital Retained earnings Accumulated other comprehensive koss Total stock hallers' equity Noncontrolling intereses Total Equity Total Liabilities and Equity 14 25.371 17,627 (8.011) 35,001 1.199 36,200 212.482 15 26,983 26,168 (9,330) 43,836 239 44,075 221,690 S Table of Contents GENERAL MOTORS COMPANY AND SUBSIDIARIES Item 8. Financial Statements and Supplementary Data CONSOLIDATED INCOME STATEMENTS (In millions, except per share amounts) Years Eoded Decemher 31, 2016 2017 2015 5 $ S. 133,449 12,139 145,588 140,205 8,979 149,184 129,864 5.861 135,725 Net sales and revenue Automotive GM Financial Total net sales and revenue Costs and expenses Automotive cost of sales GM Financial interest, operating and other expenses Automotive selling, general and administrative expense Total costs and expenses Operating income Automotive interest expense Interest income and other non-operating income, net Guin an extinguishment of debt Equity income (Note 8) Income before income taxes Inoooie tax expense (benedit) (Nole 18) Income from continuing operations Income (loss) from discontinued operations, set of tax (Note 3) Net income (loss) Net loss attributable to noncontrolling interests Net Income (loss) attributable to stockholders 114.869 11.128 9,575 135,572 10,016 575 290 120.499 8.369 10.354 139,222 9,962 563 327 1:2.995 5,304 11.888 130.187 5,528 423 614 449 2,193 8,371 (1.219) 9.990 25 9,615 72 9,687 2,132 11,863 11,533 330 (4,212) (3,882) 18 (3,864) 3 2,282 12.XIS 2.739 9,269 (1) 9.268 159 9,427 $ S Net income (less) attributable to common stockholders S (7.80) 9,427 S 9,687 S 6.09 Earnings per share (Note 21) Basic earnings per common share - continuing operations Basic earnings (loss) per common share discontinued operations Basic earnings (los) per common share Weighted average common shares outstanding - basic S 0.23 S (2.88) S (2.65) $ 1.463 6.12 $ s 6.12 $ $ $ 0.02 6.11 1.586 1,540 6.00 S S 5.89 0.02 5.91 1,640 S 6.00 Diluted ertings per common share - continuing operations S 0.22 5 Diluted cumings (ows) por common sharc - discontinued operations S (2.82) S Diluted carings (xs) per common share (2.60) $ Weighted average common shares outstanding ditute 1,492 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In millions) $ 1.570 Years Ended December 31, 2017 2016 (3.882) 9.268 5 2015 9,615 Net income (loss) Other comprehensive income (loss), net of tax (Note 20) Foreign currency Tuns Intion adjustments and other Defined benefit plans Other comprehensive income foss), net af lax Comprehensive income (loss) Comprehensive loss attributable to non controlling merests Comprehensive income (loss) attributable to stockholders 747 570 1,317 (2,565) 20 (2,545) S (384) (969) (1,353) 7.915 218 8,133 (955) 1.011 56 9,671 53 9,724 S Reference should be made to the notes to consolidated financial statements FORD MOTOR COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET (in millions) December 31, 2016 December 31, 2017 ASSETS Cash and cash equivalents (Note 9) Marketable securities (Note 9) Financial Services finance receivables, net (Note 10) Trade and other receivables, less allowances of $392 and $412 Inventories (Note 12) Other assets Total current assets 15,905 $ 22,922 46,266 11,102 8,898 3,388 108.461 18,492 20,435 52,210 10,599 10,277 3,889 115,902 49,924 28,829 32,072 3,304 9,705 5,656 237,951 S 56,182 28,235 36,327 3,085 10,973 8,104 257,808 $ $ $ 23,282 19,697 3,356 48,265 94,600 Financial Services finance receivables, net (Note 10) Net investment in operating leases (Note 13) Net property (Note 14) Equity in net assets of affiliated companies (Note 15) Deferred income taxes (Note 7) Other assets Total assets LIABILITIES Payables Other liabilities and deferred revenue (Note 16) Automotive debt payable within one year (Note 18) Financial Services debt payable within one year (Note 18) Total current liabilities Other liabilities and deferred revenue (Note 16) Automotive long-term debt (Note 18) Financial Services long-term debt (Note 18) Deferred income taxes (Note 7) Total Ilabilities Redeemable noncontrolling Interest (Note 20) EQUITY Common Stock, par value $.01 per share (3,987 million shares issued of 6 billion authorized) Class B Stock, par value $.01 per share (71 million shares issued of 530 million authorized) Capital in excess of par value of stock Retained earnings Accumulated other comprehensive Income/(loss) (Note 21) Treasury stock Total equity attributable to Ford Motor Company Equity attributable to noncontrolling interests Total equlty Total llabilities and equity 21,296 19.316 2,685 46.984 90.281 24,395 13,222 80,079 691 208.668 24,711 12,575 90,091 815 222,792 98 98 40 40 1 1 1 21,630 21,843 15,634 21,218 (7,013) (6,959) (1,122) (1,253) 29,170 34,890 17 28 29,18734,918 237,951 $ 257,808 $ The following table includes assets to be used to settle liabilities of the consolidated variable interest entities ("VIES"). These assets and liabilities are included in the consolidated balance sheet above. See Note 22 for additional information on our VIEs. December 31, 2016 December 31, 2017 $ ASSETS Cash and cash equivalents Financial Services finance receivables, net Net investment in operating leases Other assets LIABILITIES Other liabilities and deferred revenue Debt 3,047 $ 50,857 11.761 25 3,479 56,250 11,503 64 $ 5$ 43,730 2 46,437 The accompanying notes are part of the financial statements FS-4 FORD MOTOR COMPANY AND SUBSIDIARIES CONSOLIDATED INCOME STATEMENT (in millions, except per share amounts) For the years ended December 31, 2015 2016 2017 $ 140,566 $ Revenues Automotive Financial Services Other Total revenues (Note 4) 8.992 141,546 $ 10,253 1 151,800 145,653 11,113 10 156,776 149,558 Costs and expenses Cost of sales Selling, administrative, and other expenses Financial Services interest, operating, and other expenses Total costs and expenses 124,446 10.763 7 368 142,577 126,183 10.972 8.904 146,059 131,332 11.527 9,104 151,963 773 894 1,133 Interest expense on Automotive debt Non-Financial Services other income/(loss), net (Note 5) Financial Services other income/loss), net (Note 5) Equity In net income of affiliated companies Income before income taxes Provision for (Benefit from) income taxes (Note 7) Net Income Less: Income (Loss) attributable to noncontrolling interests Net income attributable to Ford Motor Company 1.854 372 1,818 10.252 2,881 7,371 (2) 7,373 $ (269) 3,060 438 207 1,780 1,201 6.796 8,148 2,189 520 4.607 7,628 11 26 4,596 $ 7,602 S EARNINGS PER SHARE ATTRIBUTABLE TO FORD MOTOR COMPANY COMMON AND CLASS B STOCK (Note 8) 1.86 $ Basic income 1.84 Diluted income 1.16 $ 1.15 1.91 1.90 0.85 0.60 Cash dividends declared 0.65 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (in millions) For the years ended December 31, 2015 2016 2017 Net Income 7,371 $ 4,807 $ 7,628 Other comprehensive income/(loss), net of tax (Note 21) Foreign currency translation (1,132) (1,024) 314 Marketable securities (6) (8) (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 04 Comprehensive Income 6,379 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 statements FS-3