Comparison of Company Performance - Ford Motor Company

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Comparison of company`s performance from prior
year
• On the basis of profitability ratios such as Gross profit ratio, net profit ratio
and return on assets are used to examine the profitability and performance
of the company (Hoffer, & Pincin, 2016).
• The company has unsuitable increasing gross profit ratio, which clearly
shows the company has not been working efficiently because with the
increase in production, revenue increases and gross profit attains an
improvement stage (Ford Motor Company-10K form, 2017).
• The reports state that in 2018, the company`s revenue has fallen while
comparing it to the 2017 data. However, the net profit too shows the same
calculation where profit has reduced in 2018.

Changes or growth in the market
Decreasing leasing costs show zero road tax and low running costs, which may tend the
customers to make a smart move and switch for another brand.
Labour and other overhead costs have been constant for all the models. This shows small cars
are less profitable and trucks are more profitable.