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1 Ford Motors Financial Statement Analysis Laniyi Cundiff BUS401: Principles of Finance (BAO2341A) Instructor: Dr. Tiffanie Deloach 16 October 2023

2 Part 1: Overview of the company The Ford Motor Company is an automaker that designs, manufactures, markets, and serves a full line of cars, trucks, sport utility vehicles, and electric vehicles. The company also provides lease services and vehicle financing. Motors sells their products under the Ford and Lincon brand names. Customers are served by the company in South Africa, the Middle East, Europe, North America and Africa, and Asia Pacific. It has plants that improve service delivery all across the world (Faris , 2023) . Transmission plants, assembly plants, casting plants, metal plants, engine plants, and other automotive items are among the facilities it operates in its branches around the world. Ford Motor Company's headquarters are located in Dearborn, Michigan, USA. The company's market price per share as of October 15th, 2023. Is 11.81, with a market deviation of -0.19. Part 2: Income statements Ford Motors Limited's revenues have increased over the last three years, according to the business. The company's sales in 2020 is $127,144 million, $136, 341 million in 2021, and $158,057 in 2022. Sales may have resulted in increasing innovation of new products and services, global market development, and improved customer service that they have implemented over the years. The operating profit has improved over the last three years, with 2020 having a $ 4,408 million operating profit, 2021 having a $4,523 million operating profit, and 2022 having a $6,276 operating profit (Faris , 2023) . This has been achieved by efficient management of operating costs over. It means that organizations have sufficient mechanisms in place to ensure that excessive expenditures are avoided and that efficiency is attained to ensure that costs associated with interruption of operating operations are avoided.

4 having a current asset of $116,744, 2021 having a current asset of $108,996, and finally 2022 having a current asset of $116,476. The liabilities describe what the company owes to third parties, and the Ford Motors Liabily has showed a variation in trend over the last three years. The obligation for 2020 is $97,192, the liability for 2021 is $90,727, and the liability for 2022 is $96,866. The liabilities reduce in 2021, indicating that we paid some, and then climb in 2022, indicating that the corporation got more credits from third parties. Long-term obligations have followed a similar pattern as current liabilities (Faris , 2023) . The shareholder equity in 2020 was $30, 811, $48,622 in 2021, and $43167 million in 2022. Part 5: Common size balance sheets Total current assets fell in 2021 compared to 2020, but climbed in 2022. With relative margins of 43.68%, 42.41%, and 45.52%. Current liabilities have followed a similar pattern. The margin falls in 2021 compared to 2020, then rises in 2022. The relative margins are 36.37%, 35.30%, and 37.86%. Long-term debts have now showed a drop in margin over the last three years, for example, Ford credit long-term debt decreased from 32.82% in 2020 to 27.70% in 2021 and ultimately 27.20% in 2022. Over the last three years, shareholders' equity has likewise decreased. That example, the margin in 2020 is 11.53%, the margin in 2021 is 18.92%, and the margin in 2022 is 16.87%. Part 6: Cash flow The cash transaction during the year represents the cashflows. That is the total amount transferred or received during the fiscal year.This is the amount received by the company or paid to other parties. A basic cashflows diagram depicts net cashflows. That is, cash inflows less cash outflows.

5 Simple Cash Flow For the year ended May 31 (in million dollars) 12/31/2022 12/31/2021 12/31/2020 USD USD USD Not Qualified Not Qualified Not Qualified Yes Yes Yes Millions Millions Millions Net Income $ (2,152.00) $ 17,910.00 $ (1,276.00) Add: Depreciatio n and amortization $ 7,642.00 $ 7,318.00 $ 8,751.00 Less: Changes in Working Capital $ 6,853.00 $ 15,787.00 $ 24,269.00 Less: Capital Expenditure $ (4,347.00) $ 2,745.00 $ (18,615.00) Less: Financial Expenditure $ 2,511.00 $ (23,498.00) $ 2,315.00 Simple Cash Flows (Free Cash Flow) $ 3,654.00 $ 4,475.00 $ (8,825.00) The above calculations has shown a increasing trend in the simple cash flows of Ford Motors Limited from 2020 to 2021 and the decreasing in 2021 to 2022. The cash outflows of $-8825, cash inflows of $4475 and cash inflows of $3654 in 2020, 2021 and 2022 respectively. Simple Cash Flow For the year ended May 31

7 encouraging. This indicates that additional capital expenditures were made during the year, or that the company was fined for loan default, which resulted in high spendings. The table 2022 2021 2020 Determination Sales 158,057 158,057 127,144 Strong Operating Profit 6,276 4,523 4,408 Strong Net Income - 2,152 17,910 - 1,276 Neutral Current Assets $ 116,476 $ 108,996 116,744 Strong Total Assets $ 255,884 $ 257,035 $ 267,261 Strong Current liabilities $ 96,866 $ 90,727 $97192 Weak Long term liabilities $69605 $71200 $87708 Weak Equity $43167 $48622 $30811 Neutral Finally, the organization has a high ability to earn cash as a result of a strong brand, which has resulted in increased sales over time. The high cost of loan acquisition and administration affects their capacity to maintain financial viability. The company's ability to generate cash from its operations is exceptional (Pineno, & Tyree. 20 23 , July) . The company's management must improve operational efficiency in order to ensure that the company can improve its cash generation power and connect with clients who are eager and capable of purchasing its items. References Faris, M. (2023). Analysis of Fundamental and Technical Financial Ford Motor Company

8 with The Arrangements of Implication Black Volatility. Available at SSRN 4482880 . https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4482880 Pineno, C. J., & Tyree, M. L. (20 23 , July). The changing public reports by management and the auditors of publicly held corporations: An updated comparative study of General Motors Corporation and Ford Motor Company. In Competition Forum (Vol. 7, No. 2, p. 465). American Society for Competitiveness. https://search.proquest.com/openview/0b2d55407da50768385635ca0df0f074/1?pq- origsite=gscholar&cbl=39801