There is little indication in Ford's financial statements that things are going to improve any time soon. The company actually hailed the 14.2% market share in North America as "the lowest market share decline in the past ten years" (Ford Motor Company, 2009).
Ford's financial position is nothing short of awful. The company's condition has deteriorated steadily over the past five years, and its performance relative to industry peers is generally poor.
Appendix a
Ford Motor Company
Financial Ratios
2008
2007
2006
2005
2004
Industry
Analysis
Liquidity Ratios
Current Ratio
1.67
1.7
1.51
1.8
1.75
1.1
Good
Quick Ratio
1.56
1.59
1.41
1.68
1.63
0.8
Good
Efficiency Ratios
Inventory Turn
15.87
15.16
15.73
14.93
13.42
7.6
Good
Receivables Turn
1.47
1.47
1.4
1.54
1.49
8.1
Poor
Avg Collection Period
Fixed Asset Turn
5.12
4.76
4.43
4.34
3.97
Total Asset Turn
0.67
0.62
0.57
0.66
0.58
0.8
Bad
Leverage Ratios
Total Debt Ratio
1.08
0.98
1.01
0.95
0.94
LT Debt Ratio
0.71
0.6
0.61
0.44
0.44
LTD to Total Capitalization
1.12
0.96
1.02
0.9
0.88
Debt to Equity
n/a
48.62
n/a
19.05
15.95
1.46
Poor
LTD to Equity
n/a
(2009). Accessed April 8, 2009 from http://moneycentral.msn.com/detail/stock_quote?Symbol=f&getquote=Get+Quote
No author. (2009). Henry Ford's $5-a-Day Revolution. Ford Motor Company. Retrieved April 8, 2009 from http://www.ford.com/about-ford/heritage/milestones/5dollaraday/677-5-dollar-a-day
No author. (2009). Ford Executive: Automaker doesn't need Bailout. NPR. Retrieved April 8, 2009 from http://www.npr.org/templates/story/story.php?storyId=102665356
No author. (2009). New Fiesta Boosts Ford of Europe Market Share. Ford Motor Company. Retrieved April 8, 2009 from http://media.ford.com/news/fordofeuropefebruary2009salesrelease.htm
Industry ratios sourced from MSN Moneycentral and Reuters.
No author. (2009). F-Series Drives Ford to Higher Market Share for Third Consecutive Month. Ford Motor Company. Retrieved April 8, 2009 from http://media.ford.com/article_display.cfm?article_id=29565
