Financial statement analysis and common stock valuation

Analysis of Revenues

• Revenues as Reported

Common-Size Income Statement
Quarterly Data

Income statement components (revenues and expenses) shown as percentage of total sales.

Analysis of Liquidity Ratios
Quarterly Data

Measures the adequacy of a Ford Motor Co. cash resources to meet its near-term cash obligations.

• Liquidity Ratios (Summary)
• Current Ratio
• Quick Ratio
• Cash Ratio

Balance Sheet: Liabilities and Stockholders’ Equity
Quarterly Data

The liabilities and stockholders’ equity reports major classes and amounts of external claims on assets and owners’ capital contributions, and other internally generated sources of capital.

Analysis of Geographic Areas

Ford Motor Co. operates in 5 regions: United States; Canada; United Kingdom; Mexico; and All Other.

• Area Asset Turnover
• Revenues
• Long-lived assets

Common-Size Balance Sheet: Assets

Assets components shown as percentage of total assets.

Analysis of Short-term (Operating) Activity Ratios

Evaluates revenues and output generated by the Ford Motor Co. assets. Operating performance ratios describe the relationship between the Ford Motor Co. level of operations and the assets needed to sustain operating activities.

• Short-term Activity Ratios (Summary)
• Inventory Turnover
• Receivables Turnover
• Payables Turnover
• Working Capital Turnover
• Average Inventory Processing Period
• Average Receivable Collection Period
• Operating Cycle
• Average Payables Payment Period
• Cash Conversion Cycle

Common-Size Balance Sheet: Liabilities and Stockholders’ Equity

Liabilities and stockholders’ equity components shown as percentage of total liabilities and stockholders’ equity.

Balance Sheet: Liabilities and Stockholders’ Equity

The liabilities and stockholders’ equity reports major classes and amounts of external claims on assets and owners’ capital contributions, and other internally generated sources of capital.

Common-Size Balance Sheet: Assets
Quarterly Data

Assets components shown as percentage of total assets.

Price to FCFE (P/FCFE)

Free cash flow to equity is the cash flow available to Ford Motor Co. equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made.

• Free Cash Flow to Equity (FCFE)
• P to FCFE Ratio, Current
• P to FCFE Ratio, Historical

Present Value of Free Cash Flow to Equity (FCFE)

The FCFE valuation approach estimates the value of equity as the present value of future FCFE discounted at the required rate of return on equity.

• Intrinsic Stock Value (Valuation Summary)
• Required Rate of Return (r)
• FCFE Growth Rate (g)