Project Report: Management Accounting

This report analyzes the financial performance of Ford Motors through ratio analysis, economic environment consideration, and annual report of the company. It also includes competitor analysis and long term perspective.

Running Head: Management accounting
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Project Report: Management Accounting

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Contents
Introduction.......................................................................................................................3
Company Overview..........................................................................................................3
Ratio analysis....................................................................................................................4
Liquidity Ratios............................................................................................................4
Profitability ratios.........................................................................................................6
Solvency Ratios............................................................................................................8
Efficiency ratios..........................................................................................................10
Economic environment consideration............................................................................12
Investor analysis.............................................................................................................13
Long term perspective....................................................................................................13
References.......................................................................................................................14
Appendix.........................................................................................................................16

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Introduction:
This report has been presented to analyze the financial performance of Ford Motors.
This report depicts that how many changes have taken place into the performance and the
position of the company. Financial analysis is a study which is performed by the chief
financial officer, top level management, financial analyst and the stakeholders to analyze the
performance of the company (Schlichting, 2013). Financial analysis is a procedure which
evaluates the budgets, projects, businesses and other financial related factors of the company
to evaluate the performance and the suitability of the company. Normally, financial analysis
is a study which is used by the companies to determine the liquid, stable, solvent and
profitable position of the company (Palicka, 2011).
Financial performance of a company depicts about the strength and position of the
company as well as it also depict about the performance of the company. It evaluates the
trend, changes and the financial policies of the comapny and makes a better decision about
the investment, changes, strategies, policies etc accordingly (Madhura, 2014). More, it has
been found that it is requisite for the companies to analyze the performance to enhance the
performance in near future.
In this report, the study has been done over the ratio analysis, economic environment
consideration, and annual report of the company to analyze the performance of the company
and depict the user about the long term perspective of the company. Further, for analyzing the
performance of the company, competitor analysis has also been done so that a better decision
could be made.
Company Overview:
Ford motors are operating its business in American market. This company has
registered itself into US stock exchange. The main office of the company is in Dearborn,
Michigan, America. Ford Motors has come into existence in 1903. The main operations of
the company is manufacturing, designing and distributing the vehicles i.e. commercial
vehicles and automobile vehicles under the brand of “FORD”. Further, it has been found that
the luxurious cars are manufactured by this company and it is sold by the company under the
brand of “Lincoln” (Home, 2017). According to the current reports of automotive industry, it
has been found that around 8% of the market share is held by Ford Motors and the growth
rate of the company is also enhancing rapidly.

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For analyzing the performance of the ford Motors in a better way, competitive
analysis has also been done and for competitive analysis, General Motors has been taken into
consideration. This company is also operating its business in American market. The main
office of the company is in Dearborn, Michigan, America. General Motors has come into
existence in 1908 (Home, 2017). The main operations of the company is manufacturing,
designing and distributing the vehicles i.e. commercial vehicles and automobile vehicles.
Further, it has been found that the plants of this company are in 35 countries. According to
the current reports of automotive industry, it has been found that this company was the largest
vehicle manufacturing company worldwide.
Ratio analysis:
Firstly, for analyzing the performance of the company in a better way, the ratio
analysis study has been performed. Ratio analysis study depict the management and chief
financial officer about the liquid performance, profitability performance, solvency
performance, debt structure performance, market performance etc. (Kruth, 2013). Following
are the study of ratio analysis of Ford Motors:
Liquidity Ratios:
Liquidity ratios evaluate the ability of the company to pay debt obligation and the
margin of safety of the company by calculating the metrics which contains the quick ratio and
current ratio of a company. Current liabilities are evaluated in context to the liquid ratios to
calculate the coverage of short term debts (Krantz, 2016). These ratios are quite useful to
identify and manage the performance of the company. Further, this analysis could also be
performed through internal and external aspects. This study expresses the better result when it
is used as a comparative ratio. Further, it has been found that the liquid ratios are quite useful
for the financial management to analyze the risk and return factors of the company and
enhance the level of the working capital management.
Firstly, the study has been done over the current assets and current liabilities of the
company to analyze the performance of the company. Current ratios and quick ratios of the
company have been calculated to enhance the level of the liquid position of the company
(Kinsky, 2011). Current ratios take a concern of current assets and liabilities and depict the
user about the position of the company.

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Through the analysis, it has been found that the liquid ratios of the company has been
enhanced from 2014 in 2016. Further, it has also been found that the curernt ratio of the
company is 1.94 whichd depict that the level of the current assets are quite higher than the
level of current liabilities of the company. Further, it has also been found that the cost of the
company is higher and it is suggestd to the company to reduce the level of the current asseets
to manage the cost and risk of the company. Further, the quick ratio of the company has been
analyzed and it has been found that the level of quick assets have been enahnced from 2014
in 2016. It depict that the company is required to reduce the level of the quick assets to
manage the cost of the company as well as it would also assist the company to manage the
other factors of the company (Elton, Gruber, Brown & Goetzmann, 2009).
Description Formula Ford Motors
2016 2015 2014
Liquidity
Current ratio
Current
assets/current
liabilities 1.94 1.75 1.77
Quick Ratio
Current assets-
Inventory/current
liabilities 1.83 1.65 1.67
Further, for analyzing the liquidity position of the company in the market, study has
been performed over General Motors.

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Through the analysis, it has been found that the level of the curernt assets and current
liabilities have been reduced by the company and the management of the company to manage
the level of the cost and the risk of the company (Baker & Nofsinger, 2010). From the study,
it has been found that the level of the company is quite competive and the Ford Motors are
also required to manage the level of the liquid position accoridng to the General Motors.
Description Formula General Motors
2016 2015 2014
Liquidity
Current ratio
Current
assets/current
liabilities 1.09 1.27 1.31
Quick Ratio
Current assets-
Inventory/current
liabilities 0.90 1.07 1.08
Profitability ratios:
Profitability ratios depict about the position and performance of the company to
manage the level of the profits and returns. Profitability ratios could be calculated through
analyzing the net profit, revenues, equity, assets etc. These ratios depict about the
performance and the position of the company in a better way (Ackert & Deaves, 2009). Net
margin ratios of the company depict about the level of the company in terms of the total
revenue of the company. These ratios are quite useful to identify and manage the
performance of the company. This study expresses the better result when it is used as a
comparative ratio. Further, it has been found that the profitability ratios are quite useful for

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the financial management to analyze the risk and return factors of the company and enhance
the level of the efficiency of the company.
Firstly, the study has been done over the net margin and revenues of the company to
analyze the performance of the company. Net margin and return on equity of the company
have been calculated to enhance the level of the profitability position of the company. Net
margin ratios take a concern of net profit and revenues of the company and depict the user
about the position of the company.
Through the analysis, it has been found that the profitability ratios of the company has
been enhanced from 2014 in 2016. Further, it has also been found that the net margin of the
company is 4.93% which depict that the level of the net margin are quite higher than the level
of revenues of the company. Further, it has also been found that the net profit of the company
has been enahnecd and it depict that the performance of the company has been better from
last 3 years (Morningstar, 2017). Further, the return on equity of the company has also been
analyzed and it has been found that the level of equity have been reduced from 2014 in 2016.
It depict that the company is required to manage the same level of the net profit and enahnce
the position of the company.
Description Formula Ford Motors
2016 2015 2014
Profitability
Net margin Net profit/revenues 4.93% 2.21% 4.87%
Return on equity Net profit/Equity 25.64% 12.66% 26.72%
Further, for analyzing the profitability position of the company in the market, study
has been performed over General Motors.

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Through the analysis, it has been found that the level of the net profit, equity and
revneues have been enahnced by the company and the management of the company to
manage the level of the met profit of the company. From the study, it has been found that the
level of the company is quite competive and the Ford Motors are also required to manage the
level of the profitability position accoridng to the General Motors (Warren, Reeve & Duchac,
2011).
Description Formula General Motors
2016 2015 2014
Profitability
Net margin Net profit/revenues 6.36% 2.53% 3.44%
Return on equity Net profit/Equity 24.02% 10.96% 12.38%
Solvency Ratios:
Solvency ratios depict about the position and performance of the company to manage
the level of the debts, equity and assets of the company. Solvency ratios could be calculated
through analyzing the various financial figures of the company such as debts, equity, assets
etc. These ratios depict about the performance and the position of the company in a better
way. Debt to equity ratios of the company depict about the level of the company in terms of
the total equity and capital structure of the company (Weygandt, Kimmel & Kieso, 2015).
These ratios are quite useful to identify and manage the performance of the company. This
study expresses the better result when it is used as a comparative ratio. Further, it has been
found that the solvency ratios are quite useful for the financial management to analyze the
risk and return factors of the company and enhance the level of the efficiency of the
company.

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Firstly, the study has been done over the debts and equity and assets of the company
to analyze the performance of the company. Debt to equity ratio and debt to assets ratio of the
company have been calculated to enhance the level of the solvency position of the company.
Debt to equity ratios take a concern of total debts and total equities of the company and
depict the user about the position of the company (Larcker, Richardson & Tuna, 2007).
Through the analysis, it has been found that the solvency ratios of the company has
been enhanced from 2014 in 2016. Further, it has also been found that the debt to equity
ratios of the company is 6.82 which depict that the level of the debts are quite higher than the
level of the total equity of the company (Juan García-Teruel & Martinez-Solano, 2007).
Further, it has also been found that the debt equity ratio of the company has been enahnecd
and it depict that the performance of the company has been worst in terms of managing the
optimal capital strutcure of the company. Further, the debt to assets of the company has also
been analyzed and it has been found that the level of assets have been managed the same
from 2014 in 2016 (Morningstar, 2017). It depict that the company is required to reduce the
level of the debts to save itself from extra risk.
Description Formula Ford Motors
2016 2015 2014
Solvency
Debt to Equity Ratio Debt/ Equity 6.82 7.28 6.55
Debt to assets Debt/ Total assets 0.87 0.88 0.87
Further, for analyzing the solvency position of the company in the market, study has
been performed over General Motors. Through the analysis, it has been found that the level

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of the total debts, total equity and total assets have been enahnced by the company and the
management of the company to manage the level of the debt and equity of the company.
From the study, it has been found that the level of the company is quite competive and the
Ford Motors are also required to manage the level of the solvency position accoridng to the
General Motors (Hoque, 2012).
Description Formula General Motors
2016 2015 2014
Solvency
Debt to Equity Ratio Debt/ Equity 3.82 3.93 2.85
Debt to assets Debt/ Total assets 0.79 0.80 0.74
Efficiency ratios:
Lastly, the study has been done over the efficiency ratios which depict about the
position and performance of the company to manage the level of the cash conversion cycle of
the company. Efficiency ratios could be calculated through analyzing the various financial
figures of the company such as total debtors, total creditors and assets of the company. These
ratios depict about the performance and the position of the company in a better way. Ratios
are quite useful to identify and manage the performance of the company. This study
expresses the better result when it is used as a comparative ratio. Further, it has been found
that the efficiency ratios are quite useful for the financial management to analyze the risk
factors of the company (Heisinger, 2009).
Firstly, the study has been done over the total debtors, total creditors and total assets
of the company. These ratios depict about the cash conversion cycle of the company. This
study helps the company to manage and identify the level of total cost and risk.

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Through the analysis, it has been found that the efficiency ratios of the company has
been enhanced from 2014 in 2016. Further, it has also been found that the total receivable
collection period and asset turnover ratio of the company has been enahnced and it depicts
that the cash conversion cycle of the company would be lesser. Further, it has also been found
that the extra cost would be required for the company to manage and run the business in a
proper manner (Garrison, Noreen Brewer & McGowan, 2010). Further, the payable payment
days of the company has also been analyzed and it has been found that the level of creditors
payment have been enhanced. It depict that the company is required to manage the cash
conversion cycle to manage the level of the risk.
Description Formula Ford Motors
2016 2015 2014
Efficiency
Receivables
collection period
Receivables/ Total
sales*365 248.87 235.14 216.91
Payables collection
period
Payables/ Cost of
sales*365 5.23 7.39 3.66
Asset turnover ratio
Total sales/ Total
assets 0.66 0.69 0.73
Further, for analyzing the efficiency position of the company in the market, study has
been performed over General Motors.

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Through the analysis, it has been found that the level of the cash conversion cycle of
the company have been reduced by the company and the management of the company to
manage the level of the risk and cost of the company (Bromwich & Bhimani, 2005). From the
study, it has been found that the level of the company is quite competive and the Ford Motors
are also required to manage the level of the efficiency position accoridng to the General
Motors.
Efficiency
Receivables
collection period
Receivables/ Total
sales*365 63.22 59.94 53.57
Payables collection
period
Payables/ Cost of
sales*365 68.44 59.55 63.90
Asset turnover ratio
Total sales/ Total
assets 0.78 0.88 0.93
Economic environment consideration:
Further, the economical environment of the country has been analyzed to identify the
performance of the company and the external factors of the company in a better way.
Through this analysis, it has been found that various changes have taken place into the
position of the company from last few years. the global financial crisis have affected the
financial market and economy of the company very badly and thus the company is required
to make few changes into the policies and strategies accordingly (Davies & Crawford, 2011).
Through the analysis, it has also been found that the economy of the country have been better

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from last 2-3 years and currently, the companies are again enhancing their financial position.
More, it has been found that Ford Motors are still performing very well; few changes are only
required by the company to change so that the position and performance of the company
would be better (Davies & Crawford, 2011).
Investor analysis:
Investor analysis study has been performed over the Ford Motors and it has been
found that the position of Ford Motors is quite good in the market. From the analysis over the
annual report and the financial statement of the company, it has been found that it is
suggested to the investors to invest the amount in Ford Motors for a long term. Currently,
company is not performing very well but the ratio analysis study depict that the performance
of the company is getting better day by day (Morningstar, 2017). Further, it has also been
found that the return and the dividend of this company are way better and it would offer the
higher return to the investors in a long term.
Long term perspective:
Through the above analysis, it has been found that the company is required to manage
the financial performance in a better way to enhance the performance in future. Through the
analysis, it has been found that the few changes are required to be done by the company to
enhance the performance in future. It has been suggested to the company to manage optimal
capitals structure to reduce the issues of risk and through it the return of the company could
also be higher (Garleanu & Pedersen, 2007). Further, it has been suggested to the company to
manage a better liquid position and cash conversion cycle so that the extra cost of the
company could be reduced as well as the position of the company and working capital
management of the company could be better.
From the analysis over the annual report and the financial statement of the company,
it has been found that it is suggested to the investors to invest the amount in Ford Motors for
a long term. Currently, company is not performing very well but the ratio analysis study
depict that the performance of the company is getting better day by day. Further, it has also
been found that the return and the dividend of this company are way better and it would offer
the higher return to the investors in a long term.

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References:
Ackert, L. & Deaves, R. (2009). Behavioral Finance: Psychology, Decision-Making, and
Markets. Cengage Learning.
Ansari S. (2004). Management Accounting: A Strategic Focus. Houghton Mifflin College
Devision.
Baker, H.K. & Nofsinger, J.R. (2010). Behavioral Finance: Investors, Corporations, and
Markets. John Wiley & Sons.
Bromwich, M. & Bhimani, A., (2005). Management accounting: Pathways to progress. Cima
publishing.
Davies, T. & Crawford, I., (2011). Business accounting and finance. Pearson.
Elton, E.J., Gruber, M.J., Brown, S.J., & Goetzmann, W.N. (2009). Modern Portfolio Theory
and Investment Analysis. John Wiley & Sons.
Garleanu, N. B., & Pedersen, L. H. (2007). Liquidity and risk management (No. w12887).
National Bureau of Economic Research.
Garrison, R. H., Noreen, E. W., Brewer, P. C., & McGowan, A. (2010). Managerial
accounting. Issues in Accounting Education, 25(4), 792-793.
Heisinger K. (2009). Essentials of Managerial Accounting. Cengage learning.
Home. (2017). Ford Motors. Retrieved from https://www.ford.com/ as on 1st December 2017.
Home. (2017). General Motors. Retrieved from https://www.gm.com/ as on 1st December
2017.
Hoque, Z., (2012). Strategic management accounting. Spiro Press.
Juan García-Teruel, P., & Martinez-Solano, P. (2007). Effects of working capital
management on SME profitability. International Journal of managerial finance, 3(2),
164-177.

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Kinsky, R. (2011). Charting Made Simple: A Beginner's Guide to Technical Analysis. John
Wiley & Sons.
Krantz, M. (2016). Fundamental Analysis for Dummies. John Wiley & Sons.
Kurth, S. (2013). Critical Review about Implications of the Efficient Market Hypothesis.
GRIN Verlag.
Larcker, D.F., Richardson, S.A. & Tuna, I., (2007). Corporate governance, accounting
outcomes, and organizational performance. The Accounting Review, 82(4), pp.963-
1008.
Madura, J. (2014). Financial Markets and Institutions. Cengage Learning.
Morningstar. (2017). Ford Motors. Retrieved from
http://beta.morningstar.com/stocks/xnys/f/quote.html as on 1st December 2017.
Morningstar. (2017). General Motors. Retrieved from
http://beta.morningstar.com/stocks/XNYS/GM/quote.html as on 1st December 2017.
Palicka, V.J. (2011). Fusion Analysis: Merging Fundamental and Technical Analysis for
Risk-Adjusted Excess Returns. McGraw Hill Professional.
Phillips, P.P. & Stawarski, C.A. (2016). Data Collection: Planning for and Collecting All
Types of Data. John Wiley & Sons.
Schlichting, T. (2013). Fundamental Analysis, Behavioral Finance and Technical Analysis on
the Stock Market. GRIN Verlag.
Warren C., Reeve J. & Duchac J. (2011). Financial and Managerail Accounting. Cengage
Learning.
Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2015). Financial & Managerial Accounting.
John Wiley & Sons.

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Appendix:
As Reported Annual Income Statement
Report Date 12/31/2016 12/31/2015 12/31/2014
Scale Millions Millions Millions
Total Sales revenues 149558 144077 146917
Automotive cost of sales 124041 123516 125234
Gross Profit 25517 20561 21683
Operating Expense
Selling, administrative & other expenses 14999 14117 13176
Operating Income 10518 6444 8507
Other income
Automotive interest income & other income net 1188 76 974
Financial services other income, net 372 348 348
Equity in net income of affiliated companies 1818 1275 1069
Other Expense
Financial Services interest expense 2454 2699 2860
Financial services provision for credit & insurance
losses 417 305 208
Automotive interest expense 773 797 829
Income (loss) before income taxes 10252 4342 7001
Provision for (benefit from) income taxes 2881 1156 -147
Net income 7371 3186 7148
income (loss) attributable to noncontrolling interests 2 1 7
Net income (loss) attributable to Ford Motor
Company 7373 3187 7155
Ford Motor Co. (DE) (NYS: F)
2016 2015 2014 2013
As Reported Annual Balance Sheet
Scale Millions Millions Millions Millions
Cash & cash equivalents
14,27
2
10,75
7
14,46
8
15,65
9
Marketable securities
20,90
4
20,39
3
22,10
0
20,28
4
Receivables
1,01,97
5
92,81
9
87,30
9
82,33
8
Inventories
8,3
19
7,86
6
7,70
8
7,36
2
Equity in net assets of affiliated companies
3,2
24
3,35
7
3,67
9
3,24
6

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Total Current Assets
1,48,69
4
1,35,19
2
1,35,26
4
1,28,88
9
Net property
30,16
3
30,12
6
27,61
6
24,94
2
Net investment in operating leases
27,09
3
23,21
7
19,98
4
16,45
1
Deferred income taxes
11,50
9
13,63
9
13,31
5
15,18
5
Net intangible assets - - - 87
Other assets
7,4
66
6,35
3
5,84
7
5,00
0
Total assets 2,24,92
5
2,08,52
7
2,02,02
6
1,90,55
4
Payables
20,27
2
20,03
5
19,53
1
19,30
8
Other liabilities & deferred revenue
42,54
6
43,57
7
40,46
2
49,40
7
Total automotive sector debt payable within one year 1,779 2,501 1,257 1,386
Total financial services sector short-term debt 12,123 11,13
8
14,99
4
17,74
5
Total Current Liabilities 76,720 77,25
1
76,24
4
87,84
6
Total automotive sector long-term debt payable after
one year
11,060 11,32
3
14,42
6
12,87
0
Total financial services sector long-term debt 1,07,89
2
94,20
9
84,01
1
73,05
7
Deferred income taxes
50
2
57
0
59
8
47
0
Total liabilities 1,96,17
4
1,83,35
3
1,75,27
9
1,74,24
3
Stockholders' Equity
Redeemable noncontrolling interest 94
34
2
33
1
32
2
Common stock 41 40 40 40
Capital in excess of par value of stock
21,42
1
21,08
9
21,42
2
20,97
6
Retained earnings (accumulated deficit)
14,41
4
24,55
6
23,65
8
18,07
7
Accumulated other comprehensive income (loss)
(6,25
7)
(20,03
2)
(18,23
1)
(22,85
4)
Treasury stock
97
7
84
8
50
6
29
2
Equity (deficit) attributable to noncontrolling
interests 15 27 33 42
Total equity (deficit) 28,751 25,17
4
26,74
7
16,31
1

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As Reported Annual Cash Flow
Report Date 12/31/2
016
12/31/
2015
12/31/
2014
Net income (loss) attributable to Ford Motor Company - automotive - - 5755
Depreciation & tooling amortization - automotive - - 4064
Other amortization - automotive - - 110
Provision for credit & insurance losses - automotive - - 2
Net loss (gain) on extinguishment of debt - automotive - - 18
Net loss (gain) on investment securities - automotive - - -190
Loss on retiree lump-sum settlements - automotive - - 594
Dividends in excess of equity investment earnings - automotive - - -529
Foreign currency adjustments - automotive - - 227
Net loss (gain) on sale of businesses - automotive - - -
Loss (gain) on changes in investments in affiliates - automotive - - 113
Stock compensation - automotive - - 152
Provision for (benefit from) deferred income taxes - - -494
Provision for deferred income taxes - automotive - - -
Intersector receivables/payables - automotive - - -136
Accounts receivable & other assets - automotive - - -1401
Inventory - automotive - - -572
Accounts payable & accrued & other liabilities - automotive - - -1332
Other operating activities - automotive - - 1357
Net cash flows from operating activities - automotive - - 7738
Net income (loss) attributable to Ford Motor Company - financial
services - - 1400
Depreciation & tooling amortization - financial services - - 2440
Other amortization - financial services - - -158
Provision for credit & insurance losses - financial services - - 208
Net loss (gain) on extinguishment of debt - financial services - - 1
Net loss (gain) on investment securities - financial services - - -
Foreign currency adjustments - financial services - - 1
Net loss (gain) on sale of businesses - financial services - - -
Stock compensation - financial services - - 7
Provision for deferred income taxes - financial services - - -367
Intersector receivables/payables - financial services - - 136
Accounts receivable & other assets - financial services - - -568
Accounts payable & other liabilities - financial services - - 737
Other operating activities - financial services - - -485
Net cash flows from operating activities - financial services - - 3352
Total sector cash flows from operating activities - - 11090
Reclassifications from investing to operating cash flows: wholesale
receivables - - -2971
Reclassifications from investing to operating cash flows: finance
receivables - - -
Reclassifications from investing to operating cash flows: other - - -73

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receivables
Reclassifications from investing to operating cash flows: payments of
interest supplements & residual support - - 2398
Net income 7371 3186 -
Depreciation & tooling amortization 7993 7385 -
Other amortization -27 38 -
Provision for credit & insurance losses 418 305 -
Pension & OPEB expense 511 1249 -
Equity investment losses (earnings) in excess of dividends received -333 189 -
Foreign currency adjustments 710 825 -
Net loss (gain) on changes in investments in affiliates -42 798 -
Stock compensation 199 180 -
Net change in wholesale & other receivables -5090 -2208 -
Provision for deferred income taxes 2120 1063 -
Accounts receivable & other assets -3563 -2897 -
Inventory -1155 -875 -
Accounts payable & accrued & other liabilities 7758 5734 -
Other cash flow from operating activs -700 -465 -
Net cash flows from operating activities 16170 14507 10444
Capital spending -7196 -7463 -6597
Acquisitions of finance receivables & operating leases -57217
-
51673
-
45822
Collections of finance receivables & operating leases 38130 36497 33966
Purchase of marketable securities -41279
-
48694 -
Sale & maturities of marketable securities 40766 50264 -
Change related to Venezuelan operations - -477 -
Purchases of securities - -
-
11999
3
Sales & maturities of securities - -
11824
7
Cash change due to initial consolidation of businesses - - 9
Proceeds from sale of business - - -
Settlements of derivatives 134 281 -217
Proceeds from sales of retail finance receivables - - 495
Elimination of cash balances upon disposition of discontinued/held-
for-sale operations - - -
Other investing activities 500 141 181
Net cash flows from investing activities -26162
-
21124
-
19731
Cash dividends -2380 -1952 -1574
Purchases of common stock -129 -1964 -213
Net changes in short-term debt 1646 -3870 -2927
Proceeds from issuance of other debt 48860 40043 40543
Principal payments on other debt -33358
-
28859
-
27953

Management accounting
20
Other financing activities -317 25 257
Net cash flows from financing activities 14322 3423 8133
Effect of exchange rate changes on cash & cash equivalents -815 -517 -37
Net increase (decrease) in cash & cash equivalents 3515 -3711 -1191
Cash & cash equivalents at beginning of year 10757 14468 15659
Cash & cash equivalents at end of year 14272 10757 14468
Cash paid for interest expense 3093 3474 3501
Cash paid (refunded) for income taxes 585 467 538
Financial Data
Description Ford Motors (M)
2016 2015 2014
Revenue 1,49,558 1,44,077 1,46,917
Cost of goods sold 1,24,041 1,23,516 1,25,234
Gross profit 25,517 20,561 21,683
Operating profit 10,518 6,444 8,507
Net profit 7,371 3,186 7,148
Inventory 8,319 7,866 7,708
Current assets 1,48,694 1,35,192 1,35,264
Receivables 1,01,975 92,819 87,309
Current liabilities 76,720 77,251 76,244
Payables 1,779 2,501 1,257
Equity 28,751 25,174 26,747
Total liabilities 1,96,174 1,83,353 1,75,279
Total assets 2,24,925 2,08,527 2,02,026

Management accounting
21
Description Formula Ford Motors
2016 2015 2014
Profitability
Net margin
Net
profit/revenues 4.93% 2.21% 4.87%
Return on equity Net profit/Equity 25.64% 12.66% 26.72%
Liquidity
Current ratio
Current
assets/current
liabilities 1.94 1.75 1.77
Quick Ratio
Current assets-
Inventory/current
liabilities 1.83 1.65 1.67
Efficiency
Receivables
collection period
Receivables/ Total
sales*365 248.87 235.14 216.91
Payables collection
period
Payables/ Cost of
sales*365 5.23 7.39 3.66
Asset turnover ratio
Total sales/ Total
assets 0.66 0.69 0.73
Solvency
Debt to Equity
Ratio Debt/ Equity 6.82 7.28 6.55
Debt to assets Debt/ Total assets 0.87 0.88 0.87
General Motors Co. (NYS: GM)
As Reported Annual Income Statement
Report Date 12/31/201
6
12/31/201
5
12/31/201
4
Currency USD USD USD
Total net sales & revenue 152356 155929 155427

Management accounting
22
Automotive cost of sales 128321 138082 134925
Gross Profit 24035 17847 20502
GM Financial operating expenses & other expenses 5733 4039 2448
Automotive selling, general & administrative expense 13405 12158 12382
Goodwill impairment charges 0 120 541
Operating income (loss) 4897 1530 5131
Other income
Interest income & other non-operating income, net 621 823 1063
Gain (loss) on extinguishment of debt 449 202 -212
Equity income & gain on investments 2194 2094 1810
Other expense
Automotive interest expense 443 403 334
Income (loss) before income taxes 7718 4246 7458
Income tax expense (benefit) -1897 228 2127
Net income (loss) before non controlling interest 9615 4018 5331
Less: Net (income) loss attributable to noncontrolling
interests 72 -69 15
Net income (loss) attributable to stockholders 9687 3949 5346
Additional Notes
Preferred Dividends 0 1145 1576
Weighted average shares outstanding - diluted 1640 1687 1676
Year end shares outstanding 1544.493 1610.366 1589.788
Cash dividends per common share 1.38 - -
General Motors Co. (NYS: GM)
Report Date 12/31/20
16
12/31/20
15
12/31/20
14
12/31/20
13
Cash & cash equivalents 15238 18954 20021 18422
Marketable securities 8163 9222 8972 8988
Restricted cash & marketable securities 1590 1338 1247 686
Receivables net 26388 25606 22813 14439
Inventories 13764 13642 14039 14714
Equipment on operating leases, net 2783 3564 2398 1782
Deferred income taxes 8599 9760 10349 9429
Other current assets 1482 1584 1662 1536
Total current assets 78007 83670 81501 69996
Restricted cash & marketable securities 583 935 829 682
GM Financial receivables, net 18500 16006 14354 6954
Equity in net assets of nonconsolidated affiliates 9201 8350 8094 6883
Property, net 31229 27743 25867 24196
Goodwill & intangible assets, net 5947 6410 7228 8782

Management accounting
23
GM Financial equipment on operating leases, net 20172 7060 3383 1649
Deferred income taxes 28443 25414 22736 27922
Other assets 2438 2089 2352 2358
Total assets 194520 177677 166344 149422
Liabilities
Accounts payable (principally trade) 24062 22529 23621 25166
Short-term debt & current portion of long-term debt
- Automotive 817 500 564 1748
Short-term debt & current portion of long-term debt
- GM Financial 18745 14488 13594 3770
Accrued liabilities 27842 28184 24633 23308
Total current liabilities 71466 65701 62412 53992
Long-term debt - Automotive 7948 8910 15452 7108
Long-term debt - GM Financial 35601 22943 6573 3424
Postretirement benefits other than pensions 5685 6229 5897 7309
Pensions 20911 23788 19483 27420
Other long-term liabilities 12586 14082 13353 13169
Total liabilities 154197 141653 123170 112422
154197 141653 123170 112422
Stockholders' Equity
Preferred Stock 0 0 3109 10391
Common stock 15 16 15 14
Additional paid-in capital 27607 28937 28780 23834
Retained earnings (accumulated deficit) 20285 14577 13816 10057
Accumulated other comprehensive income (loss) -8036 -8073 -3113 -8052
Noncontrolling interests 452 567 567 756
Total equity (deficit) 40323 36024 43174 37000
General Motors Co. (NYS: GM)
As Reported Annual Cash Flow
Report Date 12/31/2
016
12/31/2
015
12/31/2
014
Currency USD USD USD
Net income (loss) 9615 4018 5331
Less: GM Financial income - - -
Automotive income (loss) - - -
Depreciation, impairment charges & amortization expense 8017 7238 8041
Foreign currency remeasurement & transaction losses (gains) 829 437 350
Amortization of discount & issuance costs on debt issues 176 181 114
Undistributed earnings of nonconsolidated affiliates - - -
Undistributed earnings of nonconsolidated affiliates & gain on
investments -147 -301 -92
Pension contributions & OPEB payments -1600 -1315 -1458

Management accounting
24
Pension & OPEB (income) expense, net 321 439 638
Loss (gain) on extinguishment of other debt - - -
Losses (gains) on extinguishment of debt -449 -202 212
Provisions (benefits) for deferred taxes -2757 -574 1561
Change in other investments & miscellaneous assets - - -
Accounts receivable -254 -1248 8
Prepaid expenses & other deferred charges - - -
Purchases of wholesale receivables, net -1124 -2000 -
Inventories -1350 -309 59
Automotive equipment on operating leases 159 -1949 -968
Other assets -397 -213 -563
Accounts payable 1953 19 -485
Income taxes payable 60 -145 -161
Accrued liabilities & other liabilities -801 6089 784
Equipment on operating leases - - -
Change in other operating assets & liabilities, net of acquisitions &
disposals -1754 244 -1326
Other cash flows from operating activities -273 -107 -741
Net cash flow from operating activities - Automotive - - -
Net income (loss) - GM Financial - - -
Adjustments to reconcile income to net cash provided by
operating activities - GM Financial - - -
Change in operating assets & liabilities - GM Financial - - -
Net cash flow from operating activities - GM Financial - - -
Net cash flows from operating activities 11978 10058 12630
Expenditures for property -7874 -7091 -7565
Available-for-sale marketable securities, acquisitions -8113 -7636 -6754
Trading marketable securities, acquisitions -1250 -1518 -3214
Available-for-sale marketable securities, liquidations 8463 6874 3566
Trading marketable securities, liquidations 1758 1881 6538
Acquisition of companies, net of cash acquired -928 -53 -2623
Operating leases, liquidations - - -
Proceeds from sale of business units/investments, net of cash
disposed - - 896
Increase in restricted cash & marketable securities -744 -839 -984
Decrease in restricted cash & marketable securities 376 515 1107
Purchases & funding of finance receivables - - -30727
Purchase of finance receivables -17495 -14744 -
Principal collections & recoveries on finance receivables 11726 10860 27444
Change in restricted cash - - -
Purchases of leased vehicles, net -15158 -4776 -2254
Proceeds from termination of leased vehicles 1096 533 217
Other investing activities 108 296 -9
Net cash provided by (used in) investing activities - Automotive - - -
Purchase of receivables - GM Financial - - -
Principal collections & recoveries on receivables - GM Financial - - -

Management accounting
25
Purchases of leased vehicles, net - - -
Other investing activities - GM Financial - - -
Net cash provided by (used in) investing activities - GM Financial - - -
Net cash flows from investing activities -28035 -15698 -14362
Net increase (decrease) in short-term debt 1128 391 156
Proceeds from issuance of debt (original maturities greater than
three months) 35679 31373 28041
Payments on debt (original maturities greater than three months) -17256 -19524 -20191
Proceeds from issuance of stock - - -
Payments to purchase stock -3520 -3277 -2438
Payments to acquire noncontrolling interest - - -
Debt issuance costs & fees paid for debt modification - - -
Dividends paid (including charge related to purchase of series A
preferred stock) -2242 -3165 -1687
Other financing activities -103 -123 -150
Net cash provided by (used in) financing activities - Automotive - - -
Issuance of debt - GM Financial - - -
Payments of debt - GM Financial - - -
Other financing activities - GM Financial - - -
Net cash provided by (used in) financing activities - GM Financial - - -
Net cash flows from financing activities 13686 5675 3731
Effect of exchange rate changes on cash & cash equivalents - GM
Financial - - -
Net transactions with Automotive - - -
Net increase (decrease) in cash & cash equivalents - GM Financial - - -
Cash & cash equivalents at beginning of period - GM Financial - - -
Cash & cash equivalents at end of period - GM Financial - - -
Effect of exchange rate changes on cash & cash equivalents -
Automotive - - -
Net transactions with GM Financial - - -
Net increase (decrease) in cash & cash equivalents - Automotive - - -
Cash & cash equivalents at beginning of period - Automotive - - -
Cash & cash equivalents at end of period - Automotive - - -
Effect of exchange rate changes on cash & cash equivalents -1345 -1102 -400
Net increase (decrease) in cash & cash equivalents -3716 -1067 1599
Cash & cash equivalents at beginning of period 18954 20021 18422
Cash & cash equivalents at end of period 15238 18954 20021
Cash paid (received) for income taxes 800 947 727
Cash paid for interest 1643 1421 1059
Financial Data
Description General Motors (M)
2016 2015 2014
Revenue

Management accounting
26
1,52,356 1,55,929 1,55,427
Cost of goods sold 1,28,321 1,38,082 1,34,925
Gross profit 24,035 17,847 20,502
Operating profit 4,897 1,530 5,131
Net profit 9,687 3,949 5,346
Inventory 13,764 13,642 14,039
Current assets 78,007 83,670 81,501
Receivables 26,388 25,606 22,813
Current liabilities 71,466 65,701 62,412
Payables 24,062 22,529 23,621
Equity 40,323 36,024 43,174
Total liabilities 1,54,197 1,41,653 1,23,170
Total assets 1,94,520 1,77,677 1,66,344
Description Formula General Motors
2016 2015 2014
Profitability
Net margin Net profit/revenues 6.36% 2.53% 3.44%
Return on equity Net profit/Equity 24.02% 10.96% 12.38%
Liquidity
Current ratio
Current
assets/current
liabilities 1.09 1.27 1.31
Quick Ratio
Current assets-
Inventory/current
liabilities 0.90 1.07 1.08
Efficiency
Receivables
collection period
Receivables/ Total
sales*365 63.22 59.94 53.57
Payables collection
period
Payables/ Cost of
sales*365 68.44 59.55 63.90

Management accounting
27
Asset turnover ratio
Total sales/ Total
assets 0.78 0.88 0.93
Solvency
Debt to Equity Ratio Debt/ Equity 3.82 3.93 2.85
Debt to assets Debt/ Total assets 0.79 0.80 0.74