Ford Motor Financial Ratio Analysis Essay
The following report will provide the investor with a clear picture of the company’s current status as well as future projection in order to demonstrate investment opportunities. Specifically, this report examined xxx Company's financial ratios and other factors using a trend table over the past five years.
Return on assets (ROA) measures …show more content…
A quick ratio is also known as the quick asset ratio or the acid-test ratio. The quick ratio is a liquidity indicator used by determining which company assets can be immediately converted into cash divided by the company’s liabilities (Brealey et al., 2009). The quick ratio excludes inventory and other current assets which are more difficult to turn into cash. Therefore, a high ratio means a more liquid position, which tells how much cash the company can come up with in a short time.
A current ratio is a liquidity ratio that measures a company's ability in order to pay short-term obligations. The current ratio is used to determine the company’s ability to pay back its short-term liabilities such as debts using short-term