Question
In: Finance
Select any Fortune 1000 company. Access the income statments and balance sheets for your Fortune 1000...
Select any Fortune 1000 company. Access the income statments and balance sheets for your Fortune 1000 company and it's largest competitor here: http://finance.yahoo.com/ (Links to an external site.)Links to an external site.
http://fortune.com/fortune500/list/ (Links to an external site.)Links to an external site.
Analyze the financials year-over-year (2 years) for both firms and explain in your initial post which company is stronger.
Solutions
Expert Solution
I have analyzed two biggest giants in automobile industries. Ford VS General Motors
Lets compare these two companies based on following parameters.
1. Valutation
Investors look for price-to-earnings ratio to determine great buying opportunities. After all, buying a stock makes one a partial owner of that company, so investors are inherently interested in profitability.
Here is a look at the Forward P/E trend for GM and F over the last year:
As investors can see, Ford has consistently traded at a premium to GM over the last year.
2. Perfomance
As an investor one should also be interested in a stock’s recent price performance.
Check out how GM and F have performed since this time last year:
As we can see, General Motors outpaced Ford for almost a full year. But remember if stock is sold significantly , there is a greater risk of investor to flee.
3. Liquidity Ratios
| Ratio | Ford | General Motors |
| 31.03.2018 | 31.03.2018 | |
| Current Ratio | 2.04% | 0.88% |
| Quick Ratio | 1.85% | 0.74% |
As you can see ford has outperformed in both ratios. If has better capacity to pay its short term obligations. while high quick ratio indicates better capacity to covert inventory into cash.
Hence for me , ford is stronger than general motors
jeff jeffy answered 1 year agoRelated Solutions
The comparative balance sheets and income statements for Gypsy Company follow. Balance Sheets As of December...
The comparative balance sheets and income statements for Gypsy
Company follow.
Balance Sheets
As of December 31
Year 2
Year 1
Assets
Cash
$
25,779
$
2,523
Accounts receivable
2,158
1,295
Inventory
6,559
6,149
Equipment
18,948
43,638
Accumulated depreciation—equipment
(7,717
)
(17,493
)
Land
19,647
9,607
Total assets
$
65,374
$
45,719
Liabilities and equity
Accounts payable (inventory)
$
2,552
$
4,122
Long-term debt
2,728
6,236
Common stock
24,100
10,000
Retained earnings
35,994
25,361
Total liabilities and equity
$
65,374...
The comparative balance sheets and income statements for Gypsy Company follow. Balance Sheets As of December...
The comparative balance sheets
and income statements for Gypsy Company follow.
Balance Sheets
As of December 31
2017
2016
Assets
Cash
$
23,243
$
2,651
Accounts receivable
2,237
1,342
Inventory
6,202
5,814
Equipment
22,837
44,607
Accumulated
depreciation—equipment
(9,806
)
(16,588
)
Land
14,214
8,184
Total assets
$
58,927
$
46,010
Liabilities and
equity
Accounts payable (inventory)
$
2,671
$
4,315
Long-term debt
2,695
6,160
Common stock
20,700
10,500
Retained earnings
32,861
25,035
Total liabilities
and equity
$
58,927
$
46,010...
The comparative balance sheets and income statements for Munoz Company follow: Balance Sheets As of December...
The comparative balance sheets and income statements for Munoz
Company follow:
Balance Sheets
As of December 31
Year 2
Year 1
Assets
Cash
$
22,554
$
2,987
Accounts receivable
1,813
1,088
Inventory
6,503
6,097
Equipment
19,699
43,369
Accumulated depreciation—equipment
(5,974
)
(15,475
)
Land
19,269
9,039
Total assets
$
63,864
$
47,105
Liabilities and equity
Accounts payable (inventory)
$
2,738
$
4,423
Long-term debt
2,860
6,538
Common stock
25,200
11,500
Retained earnings
33,066
24,644
Total liabilities and equity
$
63,864...
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Which of the following is a difference between balance sheets and income statements? a. Balance sheets...
Which of the following is a difference between balance sheets
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a. Balance sheets are also known as
profit and loss statements, whereas income statements are also
known as statements of financial position.
b. Balance sheets are used to track
a business's liquidity, efficiency, and profitability over time
compared to other businesses in its industry, whereas income
statements are quantitative plans through which managers decide how
to allocate available money to best accomplish company goals.
c. Balance sheets...
The comparative balance sheets and an income statement for Raceway Corporation follow. Balance Sheets As of...
The comparative balance sheets and an income statement for
Raceway Corporation follow.
Balance Sheets
As of December 31
Year 2
Year 1
Assets
Cash
$
71,084
$
41,770
Accounts receivable
30,368
22,270
Merchandise inventory
156,692
172,360
Prepaid rent
2,460
4,920
Equipment
260,140
287,240
Accumulated depreciation
(148,440
)
(239,840
)
Land
192,720
80,320
Total assets
$
565,024
$
369,040
Liabilities
Accounts payable (inventory)
$
61,746
70,040
Salaries payable
33,367
28,600
Stockholders’ equity
Common stock, $50 par value
251,500
198,500
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Balance sheets and income statements for 3M Company follow. 3M Company Consolidated Statements of Income For...
Balance sheets and income statements for 3M Company follow.
3M Company
Consolidated Statements of Income
For Years Ended Dec. 31 ($ millions)
2015
2014
2013
Net sales
$30,274
$31,821
$30,871
Operating expenses
Cost of sales
15,383
16,447
16,106
Selling, general & administrative expenses
6,182
6,469
6,384
Research, development & related expenses
1,763
1,770
1,715
Total operating expenses
23,328
24,686
24,205
Operating income
6,946
7,135
6,666
Interest expense and income
Interest expense
149
142
145
Interest income
(26)
(33)
(41)
Total...
Balance sheets and income statements for 3M Company follow. 3M Company Consolidated Statements of Income For...
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3M Company
Consolidated Statements of Income
For Years Ended Dec. 31 ($millions)
2015
2014
2013
Net sales
$29,874
$31,821
$30,871
Operating expenses
Cost of sales
15,383
16,447
16,106
Selling, general & administrative expenses
6,182
6,469
6,384
Research, development & related expenses
1,763
1,770
1,715
Total operating expenses
23,328
24,686
24,205
Operating income
6,546
7,135
6,666
Interest expense and income
Interest expense
149
142
145
Interest income
(26)
(33)
(41)
Total interest...
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