Ford Income Statement

690 Words3 Pages

Companies are like spouses. If you find a good one, it is an investment, but if you find a bad one, it becomes a long-term bill. Although the analogy is funny, there is truth behind it. When an individual selects a spouse, they usually take the time to gain significant information about them before making a long-term commitment. Investing in a company is no different. New investors should research any business they are considering before obligating their money. In today’s technological environment, there are several venues to obtain key pieces data before making a decision on whether or not to commit. Some of the key pieces of information a potential investor, executive leader or industry competition will review to analyze the financial health of a company are the 10-K and the balance sheet. Another …show more content…

When analyzing Ford’s income statement the first trend that stands out is the increase in revenue between 2010 and 2011 but the decrease between 2011 and 2012. This inconsistent growth may cause concern but it is easy to identify that the decrease in financial services had the greatest impact on revenue between 2010 and 2012 (Ford, 2015). Additionally Ford’s operating income is declining each year and their net income jumped in 2011 and fell again in 2012. After conducting more research, the numbers show Ford’s ability to flourish domestically, but it is the international sales that put a dent into their revenue statistics (Isidore, 2012). “Economic difficulties in Europe, intensifying competition in South America and investments for future expansion in the Asia-Pacific region mean that North America will carry the load for Ford this year, CFO Lewis Booth said” (Wernle, 2012, p.1). The income statement enabled Mr. Booth to pinpoint their weak areas and focus on their greatest opportunity to improve

Open Document