case

Objectives:

· Conduct a business size up and financial ratio analysis.

· Understand the differences and similarities between comparable firms.

· Assess a company’s financial statements and use ratios to understand the company’s financial position.

· Identify any major issues with a company and suggest an appropriate investment strategy.

Questions:

1. As a current investor, what is your overall assessment of Ford?

2. How would you describe Ford’s comparative performance and financial position? Examine Ford’s financial ratios. What does each ratio tell you about Ford’s financial status?

3. As a current investor in Ford, which elements of financial performance are most important?

4. As John Smith in January 2018, would you buy more Ford stock, continue to hold current Ford stock, or sell the Ford stock? If you decide to sell, in which other automotive manufacturers would you invest?