Computations Line Item| Beginning of Year| | | | | Inventory| | | | $5,901,000| | | | | Total assets| | | | $178,348,000| | | | | Owners' equity| | | | $15,028,000| | | | | Number of common shares| | 3,816| | | | | | | | | | | | | | | | | | 9/29/2012| 6/29/2012| 3/30/2012| 12/30/2011| | Line Item| Q1| Q2| Q3| Q4| Annual|
Current assets| | | | 122,812,000| 121,143,000| 122,859,000| 50,232,000| $50,232,000| Fixed assets| | | | 61,868,000| 60,093,000| 59,216,000| 128,116,000| $128,116,000| Total assets| | | | 184,680,000| 181,236,000| 182,075,000| 178,348,000| $178,348,000| Average total assets| | | 181,514,000| 179,792,000| 180,211,500| 178,348,000| $178,348,000| Cash and cash equivalents| | 13,539,000| 15,101,000| 15,244,000| 17,148,000| $17,148,000| Inventory| | | | 8,208,000| 7,289,000| 7,031,000| 5,901,000| $5,901,000|
Average inventory| | | | 7,054,500| 6,595,000| 6,466,000| 5,901,000| $5,901,000| Current liabilities| | | | 64,277,000| 63,665,000| 64,352,000| 63,093,000| $63,093,000| Total liabilities| | | | 165,519,000| 164,200,000| 165,469,000| 143,320,000| $143,320,000| Owners' equity| | | | 18,841,000| 17,036,000| 16,606,000| 15,028,000| $15,028,000| Number of common shares| | 3,835| 3,834| 3,801| 3,816| 3,816|
Average number of common shares| 3,826| 3,825| 3,809| 3,816| 3,816| Average owners' equity| | | 16,934,500| 16,032,000| 15,817,000| 15,028,000| $15,028,000| Market price per share| | | 9. 81| 9. 49| 12. 32| 10. 48| $10. 48| Cash flow| | | | -1,562,000| -143,000| -1,904,000| 619,000| -$2,990,000| Cash flow per share| | | -408. 31| -37. 39| -499. 93| 162. 21| -$783. 54| Dividends paid| | | | -191,000| -191,000| -190,000| 0| -$572,000Bottom of Form| | | | | | | | | |
Total sales| | | | 32,172,000| 33,211,000| 32,445,000| 34,576,000| $132,404,000| Operating expenses | | | 29,509,000| 30,728,000| 29,727,000| 32,770,000| $122,734,000| Operating income| | | | 2,663,000| 2,483,000| 2,718,000| 1,806,000| $9,670,000| Advertising expense| | | | | | | $0| Marketing expense| | | | | | | | $0| Earnings before interest and taxes| 3,208,000| 2,581,000| 3,049,000| 2,487,000| $11,325,000| Interest expense| | | | 962,000| 986,000| 1,011,000| 1,034,000| $3,993,000| Net income| | | | 1,631,000| 1,040,000| 1,396,000| 13,615,000| $17,682,000| | | | | | | | | | Total loan| | | | | | | | $0| Value of collateral or property| | | | | | $0| Financial Trend Comparison Comparative Financial Analysis – Compared to Industry Performance
Ford Motor Company remained fairly steady in its first quarter performance this year, but slowly began a downward spiral just before summer. Sales were down throughout the summer months, and then began to rise in late August to early September. However, year-to-date overall, Ford has struggled to survive among its competitors. General Motors, Toyota, and Honda have all held strong throughout the year, and have remained ahead Ford within the automotive industry. In comparison, Ford has been very weak this year; and even with its upward trend, it will probably not surpass its competition before the end of 2012. SWOT Analysis Strengths: * First manufacturer in the automotive industry * Extensive line of vehicles for business use * Wide variety of types of automobiles to choose from
* Initiated “go green” technology in its vehicles to help the environment * Perceived as an “All American” brand Weaknesses: * Negatively affected by the economic recession in the U. S. * Limited brand availability and acknowledgement in foreign countries * Poor profitability in U. S. Markets Opportunities: * Further advancing their line of hybrid and electric powered vehicles * Due to Hurricane Sandy, many consumers are looking for new vehicles in the North Eastern United States * Expansion into more foreign markets * Technological advancements due to the increased usage of smartphones Threats: * High fuel prices * Economic and financial instability
* Increased usage of public transportation * Highly competitive market Code of Conduct Published in November of 2007, Ford Motor Company enacted a Code of Conduct relating to its employees, as well as its Board of Directors. The Code begins by saying, “Henry Ford once said, “There is a most intimate connection between decency and good business. ” (OGC Corporate Compliance Office, 2007). In reading the corporation’s Code of Conduct further, it still believes and follows this idea. This philosophy is emphasized throughout the Code, and lists the appropriate ways in which employees and board members should act in order to portray the company in an ethical and professional light.
Employees are required to report any issues of misconduct or violation or Code of Conduct standards. In order to protect the employee(s) reporting such incident(s), Ford Motor Company has created an anonymous hotline and online submission form, offers confidentiality to those reporting incidents without anonymity, and has enacted a strict policy for anyone reporting honestly any incident to be guaranteed no retaliation from the company or another employee (OGC Corporate Compliance Office, 2007). Conclusion and Decisions Analysts predict that over the next twelve months, Ford Motor Company’s stock price will continue to rise with an estimated high of $20. 00 per share and an estimated low of $12.
00 per share – which is still higher than its current selling price of $10. 93. As a potential investor, I would be willing to deposit one million dollars or more into this company for at least the short term. However, I would not be willing to invest $500,000 in bonds in the company. Ford’s debt/equity ratio is very high compared to industry standards and their bond rating verges on middle – low ratings (Morningstar, 2012). I feel this would be too high of a risk at this time. Also, I would not be willing as a member of the Board of Directors of a bank to grant a one million dollar line of credit to the company. Again, their financial standings are not as secure as I would want them to be as a business partner.
Also, since Term and Overnight Federal Funds are unsecured, I could potentially incur a huge deficit should Ford falter on their loan. Bibliography OGC Corporate Compliance Office. (2007, November). Ford code of conduct handbook. Retrieved from http://corporate. ford. com/our-company/governance-hub/governance-policy-803p CNN Money. (2012, November 9). Ford motor co . Retrieved from http://money. cnn. com/quote/quote. html? symb=F Yahoo!
Finance. (2012, November 9). Ford motor co (f). Retrieved from http://finance. yahoo. com/q? s=F Nasdaq. (2012, November 9). F: stock quote and summary data. Retrieved from http://www. nasdaq. com/symbol/f Morningstar, I. (2012). Morningstar. Retrieved from http://quicktake. morningstar. com/stocknet/bonds. aspx? symbol=f