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Company analysis. Given the financial data in the popup window, E, for General Motors (GM) and Ford Motor Company (F), compare these two companies using he following financial ratios: times interest earned ratio, current ratio, total asset turnover, financial leverage, profit margin, and return on equity. Which company vould you invest in, either as a bondholder or as a stockholder? 1 Data Table Click on the following Icon e in order to past this table's content into a spreadsheet. General Motors Ford Motor Company Sales $155,465 $146,961 EBIT $7,735 $7,866 $398 $743 Interest Expense Net Income $5,332 $7,197 Current Assets $81,597 $131,452

Company analysis. Given the financial data in the popup window, E, for General Motors (GM) and Ford Motor Company (F), compare these two companies using he following financial ratios: times interest earned ratio, current ratio, total asset turnover, financial leverage, profit margin, and return on equity. Which company vould you invest in, either as a bondholder or as a stockholder? 1 Data Table Click on the following Icon e in order to past this table's content into a spreadsheet. General Motors Ford Motor Company Sales $155,465 $146,961 EBIT $7,735 $7,866 $398 $743 Interest Expense Net Income $5,332 $7,197 Current Assets $81,597 $131,452

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Chapter 14, Question 6. Attached is a similar question with answers. Please answer in the same formate for the new question :) 

**Company Analysis: General Motors (GM) vs. Ford Motor Company (F)** This comparison uses financial data to analyze the performance of General Motors and Ford Motor Company through several financial ratios. These ratios can guide investment decisions, whether you are considering bonds or stocks. **Financial Ratios:** 1. **Times Interest Earned Ratio** - *General Motors:* 24.2523 - *Ford Motor Company:* 9.7084 2. **Current Ratio** - *General Motors:* 1.3066 - *Ford Motor Company:* 6.7375 3. **Total Asset Turnover Ratio** - *General Motors:* 0.9348 - *Ford Motor Company:* 0.7276 4. **Financial Leverage Ratio** - *General Motors:* 3.9080 - *Ford Motor Company:* 7.6520 5. **Profit Margin Ratio** - *General Motors:* 3.46% - *Ford Motor Company:* 4.83% 6. **Return on Equity (ROE)** - *General Motors:* 12.64% - *Ford Motor Company:* 26.83% --- **Data Table Explanation:** The provided data table contains financial data for both companies, expressed in millions of dollars: - **Sales** - *General Motors:* $155,463 - *Ford Motor Company:* $146,936 - **EBIT (Earnings Before Interest and Taxes)** - *General Motors:* $7,785 - *Ford Motor Company:* $7,757 - **Interest Expense** - *General Motors:* $321 - *Ford Motor Company:* $799 - **Net Income** - *General Motors:* $5,381 - *Ford Motor Company:* $7,093 - **Current Assets** - *General Motors:* $81,533 - *Ford Motor Company:* $131,536 - **Total Assets** - *General Motors:* $166,315 - *Ford Motor Company:* $201,943 - **Current Liabilities** - *General Motors:* $62,402 - *Ford Motor Company:* $19,523 - **Equity** - *General Motors:* $42,558 - *Ford
Transcribed Image Text:**Company Analysis: General Motors (GM) vs. Ford Motor Company (F)** This comparison uses financial data to analyze the performance of General Motors and Ford Motor Company through several financial ratios. These ratios can guide investment decisions, whether you are considering bonds or stocks. **Financial Ratios:** 1. **Times Interest Earned Ratio** - *General Motors:* 24.2523 - *Ford Motor Company:* 9.7084 2. **Current Ratio** - *General Motors:* 1.3066 - *Ford Motor Company:* 6.7375 3. **Total Asset Turnover Ratio** - *General Motors:* 0.9348 - *Ford Motor Company:* 0.7276 4. **Financial Leverage Ratio** - *General Motors:* 3.9080 - *Ford Motor Company:* 7.6520 5. **Profit Margin Ratio** - *General Motors:* 3.46% - *Ford Motor Company:* 4.83% 6. **Return on Equity (ROE)** - *General Motors:* 12.64% - *Ford Motor Company:* 26.83% --- **Data Table Explanation:** The provided data table contains financial data for both companies, expressed in millions of dollars: - **Sales** - *General Motors:* $155,463 - *Ford Motor Company:* $146,936 - **EBIT (Earnings Before Interest and Taxes)** - *General Motors:* $7,785 - *Ford Motor Company:* $7,757 - **Interest Expense** - *General Motors:* $321 - *Ford Motor Company:* $799 - **Net Income** - *General Motors:* $5,381 - *Ford Motor Company:* $7,093 - **Current Assets** - *General Motors:* $81,533 - *Ford Motor Company:* $131,536 - **Total Assets** - *General Motors:* $166,315 - *Ford Motor Company:* $201,943 - **Current Liabilities** - *General Motors:* $62,402 - *Ford Motor Company:* $19,523 - **Equity** - *General Motors:* $42,558 - *Ford
**Company Analysis** Below is a financial comparison of General Motors (GM) and Ford Motor Company (F) using key financial metrics. The data provided can assist in analyzing the financial health of both companies to determine which might be a better investment as a bondholder or a stockholder. ### Financial Data Table | | General Motors | Ford Motor Company | |---------------------------|----------------|--------------------| | **Sales** | $155,465 | $146,961 | | **EBIT** | $7,735 | $7,866 | | **Interest Expense** | $398 | $743 | | **Net Income** | $5,332 | $7,197 | | **Current Assets** | $81,597 | $131,452 | | **Total Assets** | $166,296 | $202,093 | | **Current Liabilities** | $62,407 | $19,423 | | **Equity** | $42,624 | $26,389 | *Values are expressed in millions of dollars.* ### Explanation of Financial Metrics - **Sales**: Revenue generated from products sold. - **EBIT (Earnings Before Interest and Taxes)**: Indicator of a company’s profitability. - **Interest Expense**: Cost incurred by an entity for borrowed funds. - **Net Income**: Profit after all expenses have been deducted from sales. - **Current Assets**: Liquid assets that a company expects to convert to cash within a year. - **Total Assets**: Sum of current and long-term assets. - **Current Liabilities**: Obligations due within one year. - **Equity**: Ownership value held by shareholders. This data is useful for calculating financial ratios such as times interest earned ratio, current ratio, total asset turnover, financial leverage, profit margin, and return on equity. These calculations can guide investment decisions.
Transcribed Image Text:**Company Analysis** Below is a financial comparison of General Motors (GM) and Ford Motor Company (F) using key financial metrics. The data provided can assist in analyzing the financial health of both companies to determine which might be a better investment as a bondholder or a stockholder. ### Financial Data Table | | General Motors | Ford Motor Company | |---------------------------|----------------|--------------------| | **Sales** | $155,465 | $146,961 | | **EBIT** | $7,735 | $7,866 | | **Interest Expense** | $398 | $743 | | **Net Income** | $5,332 | $7,197 | | **Current Assets** | $81,597 | $131,452 | | **Total Assets** | $166,296 | $202,093 | | **Current Liabilities** | $62,407 | $19,423 | | **Equity** | $42,624 | $26,389 | *Values are expressed in millions of dollars.* ### Explanation of Financial Metrics - **Sales**: Revenue generated from products sold. - **EBIT (Earnings Before Interest and Taxes)**: Indicator of a company’s profitability. - **Interest Expense**: Cost incurred by an entity for borrowed funds. - **Net Income**: Profit after all expenses have been deducted from sales. - **Current Assets**: Liquid assets that a company expects to convert to cash within a year. - **Total Assets**: Sum of current and long-term assets. - **Current Liabilities**: Obligations due within one year. - **Equity**: Ownership value held by shareholders. This data is useful for calculating financial ratios such as times interest earned ratio, current ratio, total asset turnover, financial leverage, profit margin, and return on equity. These calculations can guide investment decisions.
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