Question

In: Finance

Please examine and make an assessment on Ford's profitability over the last five years compared too...

Please examine and make an assessment on Ford's profitability over the last five years compared too the auto industry? [200 words or more][Will give thumbs up]

Solutions

Expert Solution

Ford is one of the oldest auto makers still in existence, with a global presence and a number of well known brands and models.

It makes a majority of it's income from producing and selling cars to consumers.

Despite it's impressive history the past 5 years had been tough for Ford. During that period, company' s stock was showing downtrend from$17.4 in August 2014 to a $7.4 in December 2018.In 2016, the car selling in US was falling due to price raising in vehicles. Ford has performed poorly in international market in Europe, South America and especially in Asia-pacific. Finally Ford had been slow to react to Increasing demand in hybrids and electric vehicles.

More recently a catastrophic fire in Michigan- based magnesium plant disrupted the supply chain of Ford in May last year.This incident forced to company for halt the production of F-150, it's best selling car over a week.This disruption , coupled with report of negligence in plant caused the Ford' s stock price to fall over 35%.The automotive company reported a net income$0.1bn that quarter, down from $2.4 bn in Q4 2017

Ford makes majority of it's money by selling it's car.It sells vehicle whole seller to dealers and distributors in world' s five major geographical

Segment like North America,South America, Europe, middle east Africe and Asia Pacific.

Future design-Ford has begun what it calls global

Redesign to become more agile and less beurocratic in the face of auto industry destabilizwd by increasing competition in auto industry.

Ford plans to cut approx. 10% salraried staff at August with its managerial staff taking its big hit. Tis step will eliminate appox 7000 white collar jobs and save $600 mn in a year. Ford is concentrating in now new innovative strategies which will helping in recapturing the market.


Related Solutions

Please examine and make an assessment on Ford's debt analysis over the last five years compare...
Please examine and make an assessment on Ford's debt analysis over the last five years compare to the auto industry? [200 words or more][Will give thumbs up]
Please examine and make an assessment on Ford over the last five years compared to the...
Please examine and make an assessment on Ford over the last five years compared to the auto industry? [200 words or more][Will give thumbs up]
What is Costco's profitability like currently, and over the past five years? Is the company displaying...
What is Costco's profitability like currently, and over the past five years? Is the company displaying an increase in profitability? (include some profitability ratios, like Operating profit margin, Net profit margin, and Gross profit margin). Anything helps! Thank you! (Example: Costco is profitable because... or not profitable because.... and it shows through operating profit margin increase or decrease)
Calculate the average annual growth in dividends over the last five years.
  Table 1 is the dividends per share of the 5 companies in the past 5 years. Table2 shows monthly closing share prices (adjusted to include dividends) of 5 companies, and the adjusted closing prices for the ASX200 index. Calculate the average annual growth in dividends over the last five years. Use this information, along with Gordon’s Growth Model to estimate the implied expected return for each REIT at the current market price. Show your analysis process.   FY16 FY17...
The rate of return on Cherry Jalopies, Inc., stock over the last five years was 15...
The rate of return on Cherry Jalopies, Inc., stock over the last five years was 15 percent, 11 percent, -1 percent, 4 percent, and 13 percent. Over the same period, the return on Straw Construction Company’s stock was 16 percent, 20 percent, -3 percent, 1 percent, and 12 percent. Calculate the variances and the standard deviations for Cherry and Straw. (Enter variance as a decimal and standard deviation as a percent. Round your variance to 5 decimal places and standard...
How has Anheuser-Busch InBev grown (or contracted) over the last five years?
How has Anheuser-Busch InBev grown (or contracted) over the last five years?
The rates of return on Cherry Jalopies, Inc., stock over the last five years were 16...
The rates of return on Cherry Jalopies, Inc., stock over the last five years were 16 percent, 11 percent, −1 percent, 6 percent, and 11 percent. What is the geometric return for Cherry Jalopies, Inc.? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
1. Suppose that over the last twenty-five years a country's nominal GDP grew to three times...
1. Suppose that over the last twenty-five years a country's nominal GDP grew to three times its former size. In the meantime, population grew by 40 percent and prices rose by 100 percent. What happened to real GDP per person? a. It more than doubled. b. It increased, but it less than doubled. c. it was unchanged. d. It decreased. the answer is b 2. Suppose an increase in the price of rubber coincides with an advance in the technology...
unemployment and employment over the last 10 years. report
unemployment and employment over the last 10 years. report
Suppose an economist criticizes the Federal Reserve for creating too little inflation over the last few...
Suppose an economist criticizes the Federal Reserve for creating too little inflation over the last few years arguing that employment and output could have been higher under a more expansionary monetary policy. Use the concept of money illusion to explain why this economist might hold this view. (5 pts) Is this economist more likely to believe that the short-run aggregate supply curve is highly elastic or highly inelastic? (5 pts) Is this economist more likely to believe that the labor...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT