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Running head: FORD MOTORS COMPANY
Ford Motors Company
FORD MOTORS COMPANY
Ford Motor Co. models, produces, and sales an array of Ford trucks, cars, electrified
vehicles, sport utility vehicles, and Lincoln luxury automobiles globally. The company’s
automobile division markets Lincoln and Ford vehicles, accessories, and service parts through
dealers and distributors including dealerships to governments, commercial fleet consumers, and
daily car rental firms. The financial service division of the company provides different
automotive funding products through and to automotive dealers. The financing offerings include
retail installment sale agreements for used and new cars; and direct funding leases for new cars
to commercial and retail customers including government bodies, leasing companies, fleet
consumers, and rental companies (Ford Motors Co., 2010). The company financial positions can
be analyzed as below.
Short-term liquidity defines the ability of a business entity to meet its short-range
financial obligations. It can be represented by the current ratio and quick ratios. The current ratio
is given as current assets divided by the firm’s current liabilities and reveals the ability to the
company to cover off its current obligations with prevailing assets. The quick ratio, on the other
hand, reveals the ability of the firm to cover off its current obligations by using its quick assets.
Quick ratio is evaluated by taking the c...