Ford Motor Company had constructed his first gas controlled vehicle–which he called the Quadricycle – in a workshop behind his home in 1896, while he was filling in as the central specialist for the primary plant of the Edison Illuminating Company in Detroit. He made two unsuccessful endeavors to begin an organization to produce cars before 1903. A month after the Ford Motor Company was built up; the primary Ford auto was gathered at a plant on Mack Avenue in Detroit. In the beginning of Ford, just a couple of vehicles were gathered every day, and they were worked by little groups of specialists from parts made to arrange by different organizations. With the presentation of the Model T in 1908, Ford succeeded in his main goal to deliver moderate, effective and dependable vehicles for everybody: inside 10 years, about a large portion of the autos in America were Model Ts. The breathtaking interest for the "Dilapidated car" drove Ford to create large scale manufacturing strategies, including huge generation plants, the utilization of institutionalized, compatible parts and, in 1913, the world's first moving mechanical production system for autos. In 1914, to encourage enhance profitability, Ford presented the $5 day by day wage for an eight-hour day for his laborers (up from $2.34 for nine hours), setting a standard for the business. In the case of liquidity ratios, the current ratios recorded a percentage of 648 percent in 2012, 674 % in 2013, a reduction of 16 percent. In 2015, the amount rose to 718 percent indicating an increase of 60 percent. A liquidity proportion ascertained as (money in addition to transient attractive speculations in addition to receivables) isolated by current liabilities. Ford Motor Co's. fast proportion decayed from 2013 to 2014 however then somewhat enhanced from 2014 to 2015. A liquidity proportion ascertained as (money in addition to fleeting attractive speculations) isolated by current liabilities. Ford Motor Co's. Money proportion disintegrated from 2013 to 2014 however then marginally enhanced from 2014 to 2015.
| Selected Financial Data (USD $ in millions) | ||||||
| Cash and cash equivalents | 5,386 | 4,567 | 4,959 | 6,247 | 7,965 | |
| Marketable securities | 18,181 | 17,135 | 20,157 | 18,178 | 14,984 | |
| Receivables, less allowances | 5,173 | 5,789 | 5,641 | 5,361 | 4,219 | |
| Total quick assets | 28,740 | 27,491 | 30,757 | 29,786 | 27,168 | |
| Current liabilities | 39,646 | 40,108 | 37,003 | 35,228 | 32,825 | |
| Ratio | ||||||
| Quick ratio 1 | 0.72 | 0.69 | 0.83 | 0.85 | 0.83 | |
| Benchmarks | ||||||
| Quick Ratio, Competitors | ||||||
| General Motors Co. | 0.72 | 0.84 | 0.85 | 0.79 | 0.87 | |
| Quick Ratio, Sector | ||||||
| Automobiles & Parts | 0.72 | 0.78 | 0.84 | 0.81 | 0.86 | |
| Quick Ratio, Industry | ||||||
| Consumer Goods | 0.72 | 0.71 | 0.76 | 0.73 | 0.69 | |
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Source: Based on data from Ford Motor Co. Annual Reports
2015 Calculations
1 Quick ratio = Total quick assets ÷ Current liabilities = 28,740 ÷ 39,646 = 0.72
|
Ratio |
Description |
The company |
|||||||
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable stock plus receivables) divided by current liabilities. | Ford Motor Co.'s quick ratio deteriorated from 2013 to 2014 but then slightly improved from 2014 to 2015. | |||||||
| 0.45 | 0.48 | 0.52 | 0.62 | ||||||
| Cash Ratio, Sector | |||||||||
| Automobiles & Parts | 0.44 | 0.48 | 0.56 | 0.59 | 0.65 | ||||
| Cash Ratio, Industry | |||||||||
| Consumer Goods | 0.46 | 0.44 | 0.48 | 0.46 | 0.44 | ||||
Source: Based on data from Ford Motor Co. Annual Reports
2015 Calculations
1 Cash ratio = Total cash assets ÷ Current liabilities = 23,567 ÷ 39,646 = 0.59
|
Ratio |
Description |
The company |
|||||||||||||||||||||||
| Cash ratio | A liquidity ratio computated as (cash including short-term marketable investments) divided by current liabilities. | Ford Motor Co.'s cash ratio decreased from 2013 to 2014 but then slightly advanced from 2014 to 2015. | |||||||||||||||||||||||
| Cash and cash equivalents | 5,567 | 5,386 | 7,773 | 6,130 | 5,074 | 4,567 | 5,980 | 4,736 | 4,533 | 4,959 | 5,660 | 5,475 | 5,989 | 6,247 | 6,220 | 7,180 | 7,261 | 7,965 | 8,089 | 9,822 | 12,544 | ||||
| Marketable securities | 18,684 | 18,181 | 14,404 | 14,599 | 14,468 | 17,135 | 16,876 | 21,076 | 20,729 | 20,157 | 20,485 | 20,260 | 18,190 | 18,178 | 17,885 | 16,613 | 15,801 | 14,984 | 12,687 | 12,139 | 8,822 | ||||
| Total cash assets | 24,251 | 23,567 | 22,177 | 20,729 | 19,542 | 21,702 | 22,856 | 25,812 | 25,262 | 25,116 | 26,145 | 25,735 | 24,179 | 24,425 | 24,105 | 23,793 | 23,062 | 22,949 | 20,776 | 21,961 | 21,366 | ||||
| Current liabilities | 43,139 | 39,646 | 41,012 | 41,785 | 40,506 | 40,108 | 41,639 | 42,725 | 39,779 | 37,003 | 38,109 | 37,000 | 35,237 | 35,228 | 36,058 | 35,102 | 34,885 | 32,825 | 34,382 | 36,621 | 36,739 | ||||
| Ratio | |||||||||||||||||||||||||
| Cash ratio 1 | 0.56 | 0.59 | 0.54 | 0.50 | |||||||||||||||||||||
References
Srinivasan, H., Watson, D. L., Whitaker, M., & Reyna, E. (2015). U.S. Patent No. 9,081,648 . Washington, DC: U.S. Patent and Trademark Office.
