Chat with us, powered by LiveChat In week twelve you selected a publicly traded company and found their annual report. Now that you have their financial information I would like you to perform a ratio analysis on the | Wridemy

In week twelve you selected a publicly traded company and found their annual report. Now that you have their financial information I would like you to perform a ratio analysis on the

In week twelve you selected a publicly traded company and found their annual report. Now that you have their financial information I would like you to perform a ratio analysis on the

 

In week twelve you selected a publicly traded company and found their annual report. Now that you have their financial information I would like you to perform a ratio analysis on the financial statements. Focus on the financial statement analysis chapter (PDF) you are reading this week. You will want to compute ratios for your company for the last two years. Do not compute each ratio you learned about for your company. There may be some that are not relevant. Rather focus on those eight ratios that you feel are the most important and relevant to analyze how your company is doing. Make sure to justify the ratios that you choose for your analysis. Compare how your company has done to the industry averages. Do you notice any trends that are positive or negative? Does anything look good or bad that is notable? Do you have any suggestions on things they could be doing to improve these ratios? Please analyze what you found for each of the eight ratios. Then organize your findings into a 15 minute presentation. Be sure to include some background on your company in your presentation.Submission Details: 

  • 15 minute presentation
  • Please use PowerPoint for your presentation. 

  Company name is Heartbeam Company 

Attached is the link to an annual report of the firm: https://www.sec.gov/Archives/edgar/data/1779372/000121390021046840/fs12021_heartbeaminc.htm

https://www.wsj.com/market-data/quotes/BEAT/financials

Attached is the link to the income statements, balance sheet and cash flow statements of the company. https://www.heartbeattrust.ie/wp-content/uploads/2021/02/Annual-Report-HBT-2019.pdf 

FORD MOTORS

Accounting For Leaders

Vamshi Pratap Bokketi

This Photo by Unknown Author is licensed under CC BY-SA

1

Background

Founded in 1903 by henry fond with other 11 associates

Common stock sold in 1956 for first time

It is shares are worth $ 10.86

Net income in 2019 was $ 47 millions

Selected ratios

Quick Ratio

Earnings per Share (EPS)

Asset turnover ratio

Debt-Equity Ratio

Quick ratio determines the ability of the company to pay off its short term liabilities

Earning per share measures the money that each shares earned during that financial period.

Asset turnover measures how much is being generated by each assets in the company

Debt ratio measures the relative amount of a company’s assets that are provided from debt

3

Selected ratios

Return on equity

Return on assets ratio

Interest coverage ratio

Operating margin ratio

Operating margin ratio compares the operating income to its net sales to determine the efficiency

Return on equity determine the company`s efficiency at using the equity to generate profit.

Interest coverage ratio measures how easy it is for the company to pay all interest expenses

4

Current Ratio

CR = Current assets / Current liabilities

QR(2019) = 114,047 / 98,132 = 1.16217951

AND qr (2018 = 114,649 / 95,569 = 1.199646

Industrial quick ratio 1.04 and 0.89 for 2019 and 2018 respectively

5

Earnings per Share (EPS)

2019 2018
Ford Motors 0.01 0.92
Industry N/A N/A

Asset turnover ratio

A t r = Net sales / Average total assets

ATR(2019)= 155,900 /((258,537+256,540)*0.5) = 0.60534639

ATR(2018)= =160,338 /((256,540+258,496)*0.5) =0.622628

No industrial ratio available

Debt-Equity Ratio

DER= total liabilities / Shareholder’s equity

DER(2019) = 225,307/33,230 = 6.78022871

DER(2018) = 220,474/36,066= 6.11307

Industrial ratio 1.01 for year 2018, year 2019 is not available

This Photo by Unknown Author is licensed under CC BY-SA

Return on Equity (ROE)

ROE= Net income / Shareholder’s equity

ROE(2019) = 47 /33,230 =0.001414385

ROE(2018) = 3,677 / 36,066 = 0.101951977

Industrial values 5.4% for 2018, values for 2019 not available

9

Return on assets ratio

Return on assets ratio = Net income / Total assets

ROA (2019)= 47/ 258,537 =0.000181792

ROA (2018)= 3,677 / 256,540 = 0.014333047

Industrial values 4.1 % for 2018, values for 2019 not available

Interest coverage ratio

Interest coverage ratio = Operating income / Interest expenses

ICR (2019) = 19,110/1,020 =18.73529412

ICR (2018) = 22,756 /1,238 = 18.3812601

Industrial values 2.67 for 2018, values for 2019 not available

11

Operating margin ratio

Operating margin ratio = Operating income / Net sales

For year 2019 = 19,110/ 155,900 = 0.122578576

For year 2018 = 22,756/ 160,338 =0.141925183

Industrial values 6% for 2018, values for 2019 not available

Areas of improvement

Return on assets is 1.4% while the industrial value is 4.1 for 2018. This is the place where improvements need to be made

EPS is very low for any industry. Any amount that is less than $ 1 is very low bearing in mind this is an international company.

However, other ratios calculated above are good since they are above the industrial ratios

REFERENCES

Hoffman, B. G. (2013). American icon: Alan Mulally and the fight to save Ford Motor Company. New York: Crown.

Billstein, R., & Mazal Holocaust Collection. (2014). Working for the enemy: Ford, General Motors, and forced labor in Germany during the Second World War. New York: Berghahn Books.

Journal, W. S. (2020, December 31). F | Ford Motor Co. Annual Income Statement – WSJ. Retrieved from https://www.wsj.com/market-data/quotes/F/financials/annual/income-statement

Car Carriers, Inc. v. Ford Motor Company. (2015).

14

Thank you

15

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