The Financial Performance of Ford & General Motors Discussion
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investors, employees, and creditors. Understanding the financial statements and how to
evaluate them is important to make good financial decisions. Financial ratios are used to
determine the health of a company. Ratios are a tool used to analyze the finances of the
company using the balance sheet, income statement, and cash flow statement.
Select two of the four companies shown below. Use the SEC Edgar website for your
research.
Companies:
Ford
General Motors
Pepsi
Coca-Cola
1.
2.
3.
4.
Compare the firms0rofits for the past two years.
Compute the working capital for each firm.
Determine the price-earnings (P/E) ratio.
Calculate the debt-to-equity ratio.
Explain what each calculation tells you about the firm?
Are they a good investment?
Compare the two companies and explain which is the better investment and why?
What other types of ratios would be helpful in this analysis? Explain.
Embed course material concepts, principles, and theories, which require supporting citations
along with Three scholarly peer-reviewed references supporting your answer. Keep in
mind that these scholarly references can be found in the trusted Library by conducting an
advanced search specific to scholarly references.
Be sure to support your statements with logic and argument, citing all sources referenced.
The Textbook is foundations of finance, the logic and practice of financial
management by Arthur J. Keown, John D .Martin and J.Wiliam Petty.
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