One of the most important ratios for investors is the dividend yield. The dividend yield shows the percentage of the stock price that the company pays back to investors in a given year (Investopedia). The dividend yield is calculated by dividing annual dividends per share by the price per share. Ford Motor Company paid 0.50 per share in 2014 giving a dividend per share of 0.50/15.50=3.2% (Ford Motor Company, 2015, p. 26). General Motors Company paid dividends of 1.20 per share in 2014 resulting in a dividend per share of 1.20/34.91=3.4% (General Motors Company, 2015, p. 28). As you can see, both companies pay out about the same amount in dividends (see appendix 2). General Motors appears to pay more dividends per share at first glance but since their stock price is higher than that of Ford Motor Company stock, the dividends end up being fairly close in return. Ford Motor Company included an auditor's report in the 2014 …show more content…
Their net cash from operating activities was 14,507,000,000, cash used for investing activities was (21,124,000,000), and cash from financing activities was 3,423,000,000 (Ford Motor Company, 2015, pp. FS-6). After adjusting for the effect of exchange rates on their cash, Ford Motor Company reported a decrease in cash of (3,711,000,000) from 14,468,000,000 to 10,757,000,000. Comparatively, General Motors Company's cash flow statement shows a decrease in cash. Their net cash from operating activities was 10,058,000,000, cash used for investing activities was (15,698,000,000), and cash from financing activities was 5,675,000,000 (General Motors Company, 2015, p. 69). After adjusting for the effect of exchange rate on their cash, General Motors reported a decrease in cash of (1,067,000,000) from 20,021,000,000 to 18,954,000,000. As you can see Ford Motor Company keeps less cash as an asset while General Motors keeps more cash as an
Cash flow throughout the company is broken up into cash generated by operating activities, financing activities, and investing activities. A company’s operating activities are typically what generates more cash and that stays true for J.B. Hunt. J.B. Hunt generated $873 million in 2015, a $226 million increase from the $647 million amount earned in 2014 (10-k, 22). This large increase occurred due to a few occurrences over the year. Over the year, J.B. Hunt had an increase in their earnings and they also collected much of their trade and income tax receivables (10-k, 22). Due to these primary reasons, J.B. Hunt generated more cash from operating activities during 2015. Compared to the amount of cash generated by the operating activities of
Cash flow is another financial statement that summarizes a company’s cash inflow and outflow of a business in a specific period of time (Kimmel, Weygandt & Kieso, 2013, p.115). In addition, the cash flow statement presents the net cash increase or decrease from the company’s operating, investing, and financing activities during the period, it also presents how much money that company has at end of the period. Cash from Home Depot’s operating activities is the best measure of the company’s ability to pay its debt and dividend. Home Depot has managed a health cash balance, which has reported on its balance sheet, the company generated a significant amount of cash from its operating activities. On the cash flow statement, Home Depot’s net cash provided by operating activities was gained 614 million in 2015, which compared to $7,628 in 2014 (The Home Depot, 2016).
Companies that experience surging FCF - due to revenue growth, efficiency improvements, cost reductions, share buy backs, dividend distributions or debt elimination - can reward investors tomorrow. That is why many in the investment community cherish FCF as a measure of value. When a firm 's share price is low and free cash flow is on the rise, the odds are good that earnings and share value will soon be on the up. Tesla’s Free Cash Flow for 2014 was -2,086,054 thousand, a decrease of 2,130,600 thousand from the prior year. Shrinking FCF signals trouble ahead. In the absence of decent free cash flow, companies are unable to sustain earnings growth. An insufficient FCF for earnings growth can force a company to boost its debt levels. Even worse, a company without enough FCF may not have the liquidity to stay in business. (Free Cash Flow, 2015). Based on the significant decrease in FCF from 2013 to 2014, it is not a good indication that Tesla will be able to sustain ongoing
A cash flow statement records the actual movement of a company’s cash, it shows where cash has come in from and what has actually been paid during the year. The cash flow statement records cash movements from three activities: operating, financing and investing. Operating activities adjusts the profit for non-cash expenses and gains and the changed in working capital and provides the cash actually received after conducting operations. Financing activities record the financing of the company and investing activities records the capital expenditures of a company. It basically shows the ability for a company to generate cash, as many companies earn profit but fail due to the inability to fulfil its cash needs. Investors use the cash flow statement to calculate the ‘free cash flow’ which is calculated by deducting capital expenditures from the net cash from operating activities. This shows investors how much cash is available for the company to pay its dividends. The statement of cashflows is also helpful for existing investors to review where cash is being spent and how well it is being used (Daniel, Denis & Naveen 2010).
Google decide to go public and issue common stock in the year of August of 2004. From 2013-2014 their earnings per share, EPS, was $21.24. EPS is the amount of net income earned for each share of the company's outstanding common stock. However, the main thing that caught my attention was Google's dividend yield, the ratio of dividends per share to the stock's market price per share. The ratio measures the percentage of a stock's market value that is returned annually as dividends. The main issue is that Google does not issue
It seems that Apple Inc. keeps investing effectively and does not keep too much cash, which is good. In contrast, cash and cash equivalents for Hewlett-Packard Co. had increase rates in the year 2012 to 2014. In the fiscal year 2013, its cash was increased by 7.63% as compared to 2012. Additionally, a big increase of 24.42% was in the fiscal year 2014 as compared to 2013. The increase was due to cash generated from sales of available-for-sale securities (Hewlett-Packard, 73). According to vertical analysis, it shows that cash and cash equivalents were 10.39%, 11.51%, and 14.66% in year 2012, 2013, and 2014, respectively. Cash for fiscal year 2012 and year 2013 was similar at around 11%; however, it has increased in year
..., such advantages are reversed – demand for both cars and financing drops, and Ford Motor Credit is not able to generate increased profits off of its loan portfolio. When exchange rates increase, and more dollars are necessary to purchase foreign currency, the relative price of foreign goods drops and people will tend to purchase more imports. Abroad, American cars become more expensive. People abroad will therefore purchase fewer Ford vehicles. Ford theoretically suffers a double whammy – however, as in the case of the balance of payments above, it is difficult to assess the net effect on the company because it is so diversified globally. If the exchange rates decrease, the effects are reversed.
Ford has determine their supply chain standard in order to achieve standard production procurement process. Ford Company have their incorporate Global Term and Condition. In term their term and condition that provided by Ford Company, suppliers need to follow the condition such as the guideline of social responsibility, Anti-Corruption Web-Guide outlines their prohibition of child labour, forced labour (including human trafficking), physical disciplinary abuse and any infraction of the law. In the Environmental regulation, such as Web-Guide sets out environmental requirements, including the elimination of materials of concern and increasing the use of sustainable materials whenever technically and economically feasible
Ford Motor Company has been and till the date is known as the king of innovations in the automobile industry. Their research & development department and innovation of interchangeable parts in moving assembly lines resulted in extraordinary global extension for them. They are an old heritage who ruled and still doing impressive jobs in the global automobile market. Some prestigious motor brands are also owned by Ford.
The Microsoft Corporation Cash Availability and Debts According to the Balance sheet as on 2002,the current assets of the company have increased from 39,210 to 48,576 (mil $) in year 2002 as compared to its current liabilities which amount to 12,744 (mil $). So, the company has more than four times of its current assets than current liabilities. Therefore company has adequate amount of cash to pay out its current liabilities on urgent basis. The Company’s Progress Income statement for 2002 reveals Net Income= 2000= 9,421 in 2001 were = 7346 and in 2002=7829(mil $). Although the revenue figure is raised each year but the costs of revenues have varied the incomes. Company’s cash flow statement 2002 reveals cash from operating activities in 2000 was=11426, 2001=13422, 2002=14509. (Mil $) Performance Rating To the President, Microsoft Corporation. Sir, Since your Company’s revenue growth rate was 16% in fiscal 2000, 10% in fiscal 2001, and 12% in fiscal 2002.It is continuously accelerating. After closely and objectively analyzing your company’s performance from its Current financial statements we have arrived on the conclusion to assign ‘A-Grade’ to you for your company’s solid performance and consistent productivity. The current assets of your company well surpass the current liabilities. Revenue and net income trend is continuously elevating as well as cash from operating activities. We are hopeful of its continuous progress and constructive development in years to come. The EXXON Mobil Company Cash Availability and Debts (in Mil $) According to the Balance sheet as on 2002, the current assets of the company’s current assets= 38,291 as compared to current liabilities which are 33,175 which means they have current assets...
Ford Motor Company: The Ford Empire is almost a century old. After a series of great growth periods and high revenues, the company from early 2004 to 2008 has been hit by the recession and very challenging times. The decision to invite an outsider as the CEO of Ford Motors was to take a fresh and rather novel view of Ford operations and to look at it unbiased. Ford appears on the list of the world’s most ethical companies; its commitment to stakeholder engagement, corporate governance, sustainability practices, and environmental impacts have made it feature on this list. Sustainability practices: Under the able mantle of Alan Mullaly, Ford has been able to echo the four pillars of ethical leadership.
The analysis of these ratios shows how Ford stands as a company for the past five years. Return on equity (ROE) reveals how much profit a company earned in comparison to the total amount of shareholder equity on the balance sheet. For long-term investing with great rewards, companies that have high return on equity ratios can provide the biggest payoffs. This ratio also tells investors how effectively their capital is being reinvested, so it is a good gauge of management's money handling skills. Ford is showing a considerable turn around in this area this past year, which could easily be due to changes in management. They are also reasonably following the industry in this area.
We get around places in different ways. The most useful way of transportation is by the use of vehicles. They have been around for numerous years. In addition, each and every year they come more efficient and technically advanced for the consumers’ personal use. A company that has been around since the first production of cars is the Ford Motor Company. Since 1903 to present day, their vehicles have been efficient to the consumers’ demands.
Four Basic Types of Financial Ratios Used to Measure a Company’s Performance. Retrieved September 5, 2015
The capital maintenance concept used results in differences between the relevance and faithful representation of the data that appears in the balance sheet and income statement. The difference between financial capital maintenance and physical is the treatment of unrealized holding gains and losses. Financial capital maintenance does not allow for unrealized holding gains and losses. Only realized gains and losses are included in income because they “are considered a return on capital” (Schroeder et al., 2013). This means, “income is measured only after the investment is recovered” (Gamble, 1981). Physical capital maintenance “consider[s unrealized holding gains and losses] as returns of capital and do[es] not include them income.” (Schroeder et al., 2013). Instead, they are treated as adjustments to equity and included in other comprehensive income. Therefore, with physical capital maintenance “an increase in an entity’s wealth as...