Financial ratios, business and finance homework help

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Calculate the profit margin, and after tax ROE, and then compare these with the ratios provided (access the financial statements along with the ratio analysis from the company selected previously. (Ford) Display your calculations.

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Revenue Forecasting Ford Motors Company Nicholas Pinciotti MGT/557 December, 18th, 2016 Robert Benson Revenue Forecasting Prestige Motor Vehicle As our priority organization, we would rely on Ford Motor Company and the relevant industry information into coming up with the necessary estimates in our financial statements forecasts. The industry looks promising since automobile remains to be the primary mode of transportation in developing and develop economies. In fact demand is predicted to be on an increasing trajectory in the BRIC markets that is Brazil, Russia, India and China. Statistics shows that in recent past (2013), the share of motor production made China go with 25.4%, Korea, India, Brazil and Mexico had 43% while United States stood at 12.7% and the remaining 34% went to Japan, Germany, France and UK. Analysis of Revenue Items at Ford Motor Company The company’s revenues have been on an increasing trend since 2012. This shows that the industry and company are doing well in terms of increased sales that account for the increasing revenues. The cost of those revenues are on a decreasing trend a possibility of efficiency in generating its revenues since they are on the rise. This company therefore forms a benchmark for the venture I would propose to establish in the industry. Based on the revenue items we can reliably say that the figures keep on increasing and that the company is expected to have increased total revenues for 2016 and even 2017 and years to come after if the trend is something to go by. Using the previous year’s percentage growth in revenues to predict this year revenues holding other things in constant gives the rate as (149558/144077)*100% to become 103.8% giving the growth in revenues to be about 3.8% in our selected company example. This gives the 2016 predicted total revenue to be about 155,247.5 Ford Motor Company Income Statement for the last four years. The figures are in millions US dollars apart from the per share items. Revenue Forecasting In Millions of USD 2015 2014 2013 2012 Total Revenue 149,558.00 144,077.00 146,917.00 133,559.00 Cost of Revenue 126,495.00 127,724.00 123,050.00 116,154.00 Gross Profit 23,063.00 16,353.00 23,867.00 17,405.00 14,999.00 15,716.00 10,850.00 11,529.00 -1 132 18 0 417 305 208 77 Selling/General/Admin. Expenses, Total Unusual Expense (Income) Other Operating Expenses Total Operating Expense Operating Income 141,910.00 143,877.00 134,126.00 127,760.00 7,648.00 200 12,791.00 5,799.00 959 869 875 709 10,252.00 1,234.00 14,371.00 7,638.00 7,371.00 1,230.00 11,946.00 5,612.00 2 1 7 1 Net Income Before Extra. Items 7,373.00 1,231.00 11,953.00 5,613.00 Net Income 7,373.00 1,231.00 11,953.00 5,613.00 Income Available to Common 7,373.00 1,231.00 11,953.00 5,613.00 Income Available to Common 7,373.00 1,231.00 11,953.00 5,613.00 0 0 46 48 4,002.00 3,958.00 4,087.00 4,015.00 1.84 0.31 2.94 1.41 0.6 0.5 0.4 0.2 1.93 1.39 1.87 1.57 Other, Net Income Before Tax Income After Tax Minority Interest Dilution Adjustment Diluted Weighted Average Shares Diluted EPS Dividends per Share Diluted Normalized EPS Revenue Forecasting Predicted income statement for the year 2016 and 2017 using the assumed growth rate of 3.8% for all items in the income statement all other factors being held constant 1.038 In Millions of USD Total Revenue Total Cost of Revenue Gross Profit 2017 2016 161140.37 2015 2014 155241.2 149,558.00 144,077.00 136291.279 131301.81 126,495.00 127,724.00 24849.091 23939.394 23,063.00 16,353.00 16160.5826 15568.962 14,999.00 15,716.00 Selling/General/Admin. Expenses, Total Unusual Expense (Income) -1.077444 -1.038 -1 132 Other Operating Expenses 449.294148 432.846 417 305 Total Operating Expense 152900.078 147302.58 141,910.00 143,877.00 Operating Income 8240.29171 7938.624 7,648.00 200 1033.2688 995.442 959 869 Income Before Tax 11045.9559 10641.576 10,252.00 1,234.00 Income After Tax 7941.83972 7651.098 7,371.00 1,230.00 2.154888 2.076 2 1 Net Income Before Extra. Items 7943.99461 7653.174 7,373.00 1,231.00 Net Income 7943.99461 7653.174 7,373.00 1,231.00 Income Available to Common 7943.99461 7653.174 7,373.00 1,231.00 Income Available to Common 7943.99461 7653.174 7,373.00 1,231.00 0 0 0 0 Diluted Weighted Average Shares 4311.93089 4154.076 4,002.00 3,958.00 Diluted EPS 1.98249696 1.90992 1.84 0.31 0.6464664 0.6228 0.6 0.5 Other, Net Minority Interest Dilution Adjustment Dividends per Share Revenue Forecasting Diluted Normalized EPS 2.07946692 2.00334 1.93 1.39 A revenue forecast using the Cash Flow Assumptions format. 1.04 In Millions of USD 2,017.00 2,016.00 2,015.00 2,014.00 2,013.00 Net Income/Starting Line 7,941.84 7,651.10 7,371.00 1,230.00 11,946.00 8,612.01 8,296.73 7,993.00 7,385.00 6,504.00 2,284.18 2,200.56 2,120.00 (94.00) 1,585.00 (3,936.98) (3,792.85) (3,654.00) 4,556.00 (7,767.00) 2,521.22 2,428.92 2,340.00 1,430.00 (1,824.00) 17,422.27 16,784.46 16,170.00 14,507.00 10,444.00 (7,753.29) (7,469.45) (7,196.00) (7,463.00) (6,597.00) Depreciation/Depletion Deferred Taxes Non-Cash Items Changes in Working Capital Cash from Operating Activities Capital Expenditures Other Investing Cash Flow Items (20,434.80) (19,686.71) (18,966.00) (13,661.00) (13,134.00) (28,188.09) (27,156.16) (26,162.00) (21,124.00) (19,731.00) Cash from Investing Activities Revenue Forecasting Financing Cash Flow Items (341.55) (329.05) (317.00) 25.00 257.00 (2,564.32) (2,470.44) (2,380.00) (1,952.00) (1,574.00) (138.99) (133.90) (129.00) (1,964.00) (213.00) 18,476.01 17,799.62 17,148.00 7,314.00 9,663.00 15,431.15 14,866.24 14,322.00 3,423.00 8,133.00 (878.12) (845.97) (815.00) (517.00) (37.00) 3,787.22 3,648.57 3,515.00 (3,711.00) (1,191.00) 630.30 607.23 585.00 467.00 538.00 Total Cash Dividends Paid Issuance (Retirement) of Stock, Net Issuance (Retirement) of Debt, Net Cash from Financing Activities Foreign Exchange Effects Net Change in Cash Cash Taxes Paid, Supplemental The cash flow statements have been forecasted using the growth rate assumed for the revenues. This was used for predicting 2016 and 2017 financial statements as shown above. References http://performance.morningstar.com/stock/performancereturn.action?t=F®ion=usa&culture=e n-US https://www.google.com/finance?fstype=ii&q=NYSE:F http://corporate.ford.com/investors/reports-and-filing Revenue Forecasting http://www.marketwatch.com/investing/stock/f/financials https://www.sba.gov/ https://www.sba.gov/
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Running head: ANALYSIS OF THE FORD COMPANY

Analysis of the Ford Company
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ANALYSIS OF THE FORD COMPANY

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Analysis of The Ford Company
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