You will need to access the Form 10-K for Ford Motor Company. This can be done by typing the following into your browsers search box: Ford Investor Relations Annual Report. You should then select the 2016 Annual Report and download in pdf format.

Alternatively, you can access the 10-K by using the Morningstar database through the Library website. Type the companys ticker symbol (F) into the search box and you will be brought to the Quote overview page. From here you can select Filings on the blue menu bar. Be sure to check with your professor to make sure you have the 10-K for the correct year end.

Check with your professor if you have any question as to whether or not you have the correct report and/or the correct year. Unless otherwise specified, all answers about the company must come from the 10-K.

Complete the table below as follows:

Use the formula list your instructor will provide to get the formulas for the first column. Column A should contain the appropriate numeric values that you have pulled from the financial statements on the companys 10-K to show your actual calculations. So for example: if you were asked to show the Current Ratio your first cell in Column A would contain the dollar value of the firms current assets divided by the dollar value of the firms current liabilities show both values and the mathematical operation.

Put the results of your calculation from Column A in Column B. (You are doing the calculations for Column B manually). Please round all answers to 2 decimal places.

Use the Morningstar Database to get the ratio numbers for Column C. If you cannot find a specific ratio in Morningstar, you may ask a research librarian for guidance and be sure to review the Morningstar helpful information at the end of these instructions for assistance in identifying ratios as well as the Morningstar Tutorial on the All Sections Blackboard site.

Note that Column D has been prefilled for you with the values for the peer group. This peer group includes an average of the results for the following firms: Toyota Motor Corp., Tesla Inc., General Motors Corp, Fiat Chrysler Automobiles NV, and Volkswagen. These results have also been pulled from Morningstar.

Note: Some ratios in Column B will be different from the ratios in Column C. This is because Morningstar may use formulas for some ratios which are different from our textbook ratios. This is common. Do not attempt to make these two columns identical. However, comparisons of ratios should be based on the same formulas; so for this reason, you will use columns C and D for the remaining analysis.

Note: If the company has extraordinary items, use Income before Extraordinary Items and if it has discontinued operations, use Income from Continuing Operations. The Earnings per share should be Basic and your weighted average common shares should be Basic. Price to Earnings (PE Ratio) should be Basic for the most recent Year End (do not use the TTM).

	RATIO CALCULATION	CALCULATION RESULT	RATIO FOR YOUR FIRM BASED UPON MORNINGSTAR	RATIO OF PEER GROUP FROM MORNINGSTAR
LIQUIDITY RATIOS
Current Ratio
Acid Test = Quick Ratio
Average Collection Period
AP Deferral Period
Inventory Conversion Period
Cash Conversion Cycle
CAPITAL STRUCTURE RATIOS
Times Interest Earned
Equity Multiplier
ASSET MANAGEMENT EFFICIENCY RATIOS
Total Asset Turnover
PROFITABILITY RATIOS
Gross Profit Margin
Operating Profit Margin
Net Profit Margin
Return on Assets (ROA)
Return on Equity (ROE)
MARKET VALUE RATIOS
Price-Earnings Ratio
EPS (Basic)
Market-to-Book Ratio

PART B:

Using the data from Columns C and D above, determine the Return on Equity for Ford only using the DuPont Methodology. Show your inputs in the table below be sure to label each of the columns appropriately. (8 points)

Ford

Using the data from Columns C and D above, in a few brief sentences, describe Fords short-term liquidity relative to its peer group? [Please do not just say that Ford is more or less liquid you need to support your assessment and indicate what having good or poor liquidity implies about Fords management.] (4 points)

Using the data from Columns C and D above, and in a few brief sentences, what can you determine about Fords ability to utilize its existing assets? [Please do not just say that Ford is better or worse than the peer group you need to support your assessment and indicate what this information implies about Fords management.] (4 points)

Using the data from Columns C and D above, and in a few brief sentences, what can you determine about Fords use of financial leverage? [Please do not just say that Ford uses more or less financial leverage you need to support your assessment and indicate what using more or less leverage means to Fords financial viability] (4 points)

Looking at the four companies in the Peer Group, briefly describe how comparable these firms are to Ford? Are they companies you would have selected to compare with Ford? Is there one or more company you feel should not be included in this list? Why? Are there companies which are not included in this list that you feel should be included as part of the peer group? Why?