In: Operations Management
Please examine and make an assessment on Ford's debt analysis over the last 5 years compared to the auto industry? [200 word or more][Will give thumbs up]
Ford is big name in Auto industry. Many other companies wants to adopt its business model as well. But if you company from recent years that it has huge impacts specially in current year where economy of every country get harm due to Covid 19.
I am taking example from 2016, below is the balance sheet of the company:-
Here you can see the difference in year wise differences of the company’s assets in the real world. Below are the description for the same:-
Income statement item |
Description |
The company |
Automotive revenues |
Amount, including tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value-added and excise. |
Ford Motor Co.’s automotive revenues increased from 2017 to 2018 but then decreased significantly from 2018 to 2019. |
Operating income |
The net result for the period of deducting operating expenses from operating revenues. |
Ford Motor Co.’s operating income decreased from 2017 to 2018 and from 2018 to 2019. |
Income (loss) before income taxes |
Amount of income (loss) from continuing operations, including income (loss) from equity method investments, before deduction of income tax expense (benefit), and income (loss) attributable to noncontrolling interest. |
Ford Motor Co.’s income (loss) before income taxes decreased from 2017 to 2018 and from 2018 to 2019. |
Net income attributable to Ford Motor Company |
The portion of profit or loss for the period, net of income taxes, which is attributable to the parent. |
Ford Motor Co.’s net income attributable to Ford Motor Company decreased from 2017 to 2018 and from 2018 to 2019. |
Automotive revenues |
Amount, including tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value-added and excise. |
Ford Motor Co.’s automotive revenues increased from 2017 to 2018 but then decreased significantly from 2018 to 2019. |
In current year, company will going face a huge loss due to Covid 19. The data for the same is not available right now but sooner, this information will be available as well.