Question
The company is FORD( the car company) Based on the information contained in the most recent financial statements, compute the following ratios for your company
The company is FORD( the car company) Based on the information contained in the most recent financial statements, compute the following ratios for your company for the past 2 years. Compute each year separately, showing the calculations for each ratio. The formulas for the ratios are available on the internet. (For items g, k, and q below, write a 2-4 sentence conclusion for each group of ratios (a-f, h-j, l-p) where indicated, indicating whether the ratios are improving, stable, or getting worse in comparison to the prior year).
a. Current ratio.
b. Current cash debt coverage ratio
c. Receivables turnover ratio and
d. Average collection period
e. Inventory turnover ratio and
f. Days in inventory
g. What conclusions concerning the companys liquidity can be drawn from these ratios (a f)?
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