case
Maria Castro 
2FordMotorCompany-StudentSpreadsheets.xlsxCopyright
| Product Number: | 7B18N027 |
| Title: | Ford Motor Company: Basic Financial Ratios - Student Spreadsheet |
| This spreadsheet supports the product 9B18N027. | |
| Prepared by: | Zhichuan (Frank) Li, Xiaojun Zhu, Danieta Zapata, Tabish Munir |
| Last Revised: | February 13, 2019 |
| No part of this file may be reproduced, stored in a retrieval system, posted to the Internet, or transmitted in any form or by any means without the permission of Ivey Business School Foundation. To order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Business School, Western University, London, Ontario, Canada, N6G 0N1; (t) 519.661.3208; (e) [email protected]; www.iveycases.com. | |
| © 2019 Ivey Business School Foundation |
Balance Sheet
| Balance Sheet | ||||||||
| In millions of US$ | Ford | Toyota | General Motors | Honda | ||||
| (except per share) | 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | 2017 | 2016 |
| Assets | ||||||||
| Cash & marketable securities | 38,927 | 38,827 | 26,879 | 26,153 | 23,825 | 24,415 | 18,919 | 15,126 |
| Accounts receivable | 62,809 | 11,102 | 78,520 | 83,027 | 8,164 | 8,700 | 23,744 | 24,468 |
| Inventories | 10,277 | 8,898 | 21,436 | 18,342 | 10,663 | 11,040 | 12,255 | 11,673 |
| Prepaid expenses & other current assets | 3,889 | 49,634 | 33,209 | 34,492 | 26,092 | 32,048 | 3,974 | 4,211 |
| Total current assets | 115,902 | 108,461 | 160,044 | 162,014 | 68,744 | 76,203 | 58,892 | 55,478 |
| Net plant, property & equipment | 35,327 | 32,072 | 91,511 | 86,662 | 36,253 | 32,603 | 65,627 | 60,601 |
| Investments | 31,320 | 32,133 | 175,563 | 166,799 | 9,073 | 8,996 | 27,586 | 27,396 |
| Deferred income taxes | 10,973 | 9,705 | 0 | 8,601 | 23,544 | 33,172 | 1,091 | 1,607 |
| Other assets | 64,286 | 55,580 | 12,912 | 6,497 | 74,868 | 70,716 | 17,120 | 16,953 |
| Total long-term assets | 141,906 | 129,490 | 279,986 | 268,559 | 143,738 | 145,487 | 111,424 | 106,557 |
| Total assets | 257,808 | 237,951 | 442,030 | 430,573 | 212,482 | 221,690 | 170,316 | 162,035 |
| Liabilities | ||||||||
| Short-term borrowings & notes payable | 48,265 | 46,984 | 91,368 | 85,069 | 26,965 | 23,797 | 10,440 | 9,846 |
| Accounts payable | 23,282 | 21,296 | 53,197 | 48,570 | 23,929 | 23,333 | 9,103 | 8,547 |
| Other current liabilities | 23,053 | 22,001 | 10,860 | 9,823 | 25,996 | 38,051 | 29,228 | 30,231 |
| Total current liabilities | 94,600 | 90,281 | 155,425 | 143,462 | 76,890 | 85,181 | 48,771 | 48,624 |
| Long-term debt | 102,666 | 93,301 | 88,949 | 86,944 | 67,254 | 51,326 | 36,758 | 33,829 |
| Other liabilities | 25,611 | 25,131 | 35,939 | 47,041 | 33,337 | 41,347 | 19,247 | 19,480 |
| Total liabilities | 222,877 | 208,713 | 280,313 | 277,447 | 177,481 | 177,854 | 104,776 | 101,933 |
| Shareholders’ equity | ||||||||
| Common equity | 41 | 41 | 3,567 | 3,529 | 14 | 15 | 773 | 765 |
| Retained earnings | 21,218 | 15,634 | 158,127 | 149,282 | 17,627 | 26,168 | 60,308 | 55,060 |
| Treasure stock, reserves & other equity | 13,672 | 13,563 | 23 | 315 | 17,360 | 17,653 | 4,459 | 4,277 |
| Total equity | 34,931 | 29,238 | 161,717 | 153,126 | 35,001 | 43,836 | 65,540 | 60,102 |
| Total liabilities and equity | 257,808 | 237,951 | 442,030 | 430,573 | 212,482 | 221,690 | 170,316 | 162,035 |
Income Statement
| Income Statement | |||||||||
| In millions of US$ | Ford | Toyota | General Motors | Honda | |||||
| (except per share) | 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | |
| Revenue | 156,776 | 151,800 | 255,286 | 236,786 | 145,588 | 149,184 | 129,498 | 121,724 | |
| -Cost of goods sold | 140,436 | 135,087 | 210,302 | 188,453 | 114,869 | 120,499 | 100,513 | 94,474 | |
| Gross profit | 16,340 | 16,713 | 44,984 | 48,333 | 30,719 | 28,685 | 28,985 | 27,250 | |
| -Operating expenses | 11,527 | 10,927 | 26,535 | 24,540 | 20,703 | 18,723 | 21,208 | 23,054 | |
| ÉÉSelling, general & administrative | 11,527 | 10,972 | 16,937 | 15,740 | 9,575 | 10,354 | 14,812 | 17,580 | |
| ÉÉOther operating expense | 0 | 0 | 9,597 | 8,800 | 11,128 | 8,369 | 6,396 | 5,474 | |
| Operating income | 4,813 | 5,786 | 18,449 | 23,793 | 10,016 | 9,962 | 7,777 | 4,196 | |
| -Non-operating (income) loss | -3,335 | -1,055 | -1,845 | -1,079 | -1,847 | -2,046 | -1,538 | -1,101 | |
| ++Interest expense, net | 1,023 | 608 | 271 | 295 | 309 | 381 | -184 | -86 | |
| +++Interest expense | 1,133 | 894 | 271 | 295 | 575 | 563 | 115 | 151 | |
| --- Interest income | 110 | 286 | 0 | 0 | 266 | 182 | 299 | 237 | |
| ÉÉOther non-operating (income) loss | -4,358 | -1,663 | -2,116 | -1,374 | -2,156 | -2,427 | -1,354 | -1,015 | |
| Pretax income | 8,148 | 6,841 | 20,294 | 24,872 | 11,863 | 12,008 | 9,315 | 5,297 | |
| Income tax | 546 | 2,245 | 3,356 | 5,592 | 15,727 | 2,581 | 3,612 | 3,388 | |
| Net income | 7,602 | 4,596 | 16,938 | 19,280 | -3,864 | 9,427 | 5,703 | 2,872 | |
| Reference items | |||||||||
| EBITDA | 13,266 | 14,458 | 33,350 | 37,346 | 22,277 | 19,781 | 14,014 | 9,704 | |
| EBIT | 4,813 | 5,741 | 18,449 | 23,793 | 10,016 | 9,962 | 7,777 | 4,197 | |
| Common shares outstanding | 3,901 | 3,902 | 3,263 | 3,338 | 1,420 | 1,524 | 1,811 | 1,811 | |
| Earnings per common share | 1.91 | 1.16 | 5.6 | 6.18 | -2.65 | 6.12 | 3.16 | 1.59 |
Cash Flow
| Cash Flow Statement | ||||||||
| In millions of US$, except per share | Ford | Toyota | General Motors | Honda | ||||
| 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | |
| Cash flows from operating activities | ||||||||
| Net income | 7,602 | 4,596 | 16,938 | 19,280 | -3,864 | 9,427 | 5,703 | 2,872 |
| Non-cash Items | -792 | 3612 | 293 | 1,451 | 11,956 | -2,833 | -4,127 | 2,252 |
| Depreciation & amortization | 8,453 | 8,717 | 14,902 | 13,554 | 12,261 | 9,819 | 6,237 | 5,508 |
| Change in non-working capital | 2,833 | 2,925 | -551 | 2,903 | -3,015 | 580 | 373 | 963 |
| Cash used for operating activities | 18,096 | 19,850 | 31,582 | 37,188 | 17,338 | 16,993 | 8,186 | 11,595 |
| Cash from investing activities | ||||||||
| Investments in property, plant & equipment | -7,049 | -6,992 | -10,940 | -10,341 | -8,453 | -8,384 | -5,724 | -7,055 |
| Net change in long-term investment | -14,713 | -17,173 | -22,233 | -7337 | 0 | 0 | 0 | 0 |
| Other investing activities | 2,370 | -1,187 | 5290 | -8,854 | -15,619 | -26,635 | -413 | -239 |
| Cash used for investing activities | -19,392 | -25,352 | -27,883 | -26,532 | -24,072 | -35,019 | -6,137 | -7,294 |
| Cash flows from financing activities | ||||||||
| Dividends paid | -2,584 | -3,376 | -5,869 | -5875 | -2,233 | -2,368 | -1,500 | -1,322 |
| Repurchase of common stock | -131 | -145 | -6,512 | -2,528 | -3,507 | -2,500 | -0.1 | -0.1 |
| Increase (decrease) in debt | 6,260 | 11,028 | 9,536 | 5,492 | 18,455 | 21,027 | 3,312 | 1,280 |
| Other financing activities | -151 | -107 | -626 | -620 | -305 | -163 | -744 | -752 |
| Cash from financing activities | 3,394 | 7,400 | -3,471 | -3,531 | 12,410 | 15,996 | 1,068 | -794 |
| Effects of exchange rate changes | 489 | -265 | -125 | -1,666 | 348 | -213 | -12 | -1,124 |
| Net change in cash | 2,587 | 1,633 | 103 | 5,459 | 6,024 | -2,243 | 3,105 | 2,383 |
| Reference items | ||||||||
| Cash & cash equivalents | 38,927 | 38,827 | 52,999 | 48,736 | 23,825 | 24,415 | 18,919 | 15,126 |
Financial Ratio
| Comparative Financial Ratios | ||||||||
| Ford | Toyota | General Motors | Honda | |||||
| 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | |
| Liquidity Ratios | ||||||||
| Cash ratio | 0.41 | 0.43 | 0.34 | 0.34 | 0.31 | 0.29 | 0.39 | 0.31 |
| Acid test ratio (Quick ratio) | 1.08 | 0.55 | 0.68 | 0.76 | 0.42 | 0.39 | 0.87 | 0.81 |
| Current ratio | 1.23 | 1.20 | 1.03 | 1.13 | 0.89 | 0.89 | 1.21 | 1.14 |
| Efficiency | ||||||||
| Days receivables | 146 | 27 | 112 | 127 | 21 | 21 | 67 | 73 |
| Days payables | 61 | 57 | 92 | 94 | 76 | 71 | 33 | 33 |
| Days of inventory | 27 | 24 | 37 | 36 | 34 | 33 | 45 | 45 |
| Financial leverage | ||||||||
| Debt to total assets | 0.86 | 0.88 | 0.63 | 0.64 | 0.84 | 0.80 | 0.62 | 0.63 |
| Leverage ratio | 6.38 | 7.14 | 1.73 | 1.81 | 5.07 | 4.06 | 1.60 | 1.70 |
| Long-term leverage ratio | 2.94 | 3.19 | 0.55 | 0.57 | 1.92 | 1.17 | 0.56 | 0.56 |
| Total debt to EBITDA | 16.80 | 14.44 | 8.41 | 7.43 | 7.97 | 8.99 | 7.48 | 10.50 |
| Interest coverage ratio | 4.25 | 6.42 | 68.08 | 80.65 | 17.42 | 17.69 | 67.63 | 27.7 |
| Profitability | ||||||||
| Return on common equity | 21.8% | 15.7% | 10.5% | 12.6% | -11.0% | 21.5% | 8.7% | 4.8% |
| Return on assets | 2.9% | 1.9% | 3.8% | 4.5% | -1.8% | 4.3% | 3.3% | 1.8% |
| Return on invested capital | 1.4% | 3.3% | 4.5% | 6.0% | -1.5% | 7.8% | 3.4% | 1.8% |
| Gross margin | 10.4% | 11.0% | 17.6% | 20.4% | 21.1% | 19.2% | 22.4% | 22.4% |
| EBITDA margin | 8.5% | 9.5% | 13.1% | 15.8% | 15.3% | 13.3% | 10.8% | 8.0% |
| Operating margin | 3.1% | 3.8% | 7.2% | 10.0% | 6.9% | 6.7% | 6.0% | 3.4% |
| Pretax margin | 5.2% | 4.5% | 7.9% | 10.5% | 8.1% | 8.0% | 7.2% | 4.4% |
| Net income margin | 4.8% | 3.0% | 6.6% | 8.1% | -2.7% | 6.3% | 4.4% | 2.4% |
| Growth and valuation | ||||||||
| One-year sales growth | 3.3% | 0.7% | 7.8% | 5.1% | -2.4% | -12.9% | 6.4% | 11.7% |
| One-year operating income growth | -16.8% | -17.8% | -22.5% | -5.4% | 0.5% | 79.9% | 85.3% | -31.5% |
| One-year net income growth | 65.4% | -37.7% | -12.1% | -3.0% | -141.0% | -2.7% | 98.6% | -38.3% |
| Enterprise multiples | 2.95 | 2.54 | 8.99 | 7.19 | 2.36 | 2.1 | 7.32 | 9.17 |
| Enterprise value-to-sales | 0.25 | 0.24 | 1.17 | 1.13 | 0.36 | 0.28 | 0.79 | 0.73 |
| Price earnings ratio (P/E) | 7.85 | 6.92 | 5.60 | 6.18 | 5.80 | 5.51 | 9.82 | 16.11 |
| Activity ratio | ||||||||
| Asset turnover | 0.61 | 0.64 | 0.58 | 0.55 | 0.69 | 0.67 | 0.76 | 0.75 |
| Accounts receivable turnover | 2.50 | 13.67 | 3.25 | 2.85 | 17.83 | 17.15 | 5.45 | 4.97 |
| Inventory turnover | 13.67 | 15.18 | 9.81 | 10.27 | 10.77 | 10.91 | 8.2 | 8.09 |
| Accounts payable turnover | 6.36 | 6.57 | 9.31 | 9.39 | 4.84 | 4.97 | 11.06 | 10.52 |
| Cash conversion cycle (days) | 108 | 104 | 104 | 100 | 26 | 27 | 82 | 82 |
