Product Number: 7B18N027

Title: Ford Motor Company: Basic Financial Ratios - Student Spreadsheet

This spreadsheet supports the product 9B18N027.

Prepared by: Zhichuan (Frank) Li, Xiaojun Zhu, Danieta Zapata, Tabish Munir

Last Revised: February 13, 2019

No part of this file may be reproduced, stored in a retrieval system, posted to the Internet, or
transmitted in any form or by any means without the permission of Ivey Business School
Foundation. To order copies or request permission to reproduce materials, contact Ivey
Publishing, Ivey Business School, Western University, London, Ontario, Canada, N6G 0N1; (t)
519.661.3208; (e) cases@ivey.ca; www.iveycases.com.

© 2019 Ivey Business School Foundation

 Balance Sheet
In millions of US$ Ford Toyota General Motors
(except per share) 2017 2016 2017 2016 2017 2016
Assets
Cash & marketable
38,927 38,827 26,879 26,153 23,825 24,415
securities
Accounts receivable 62,809 11,102 78,520 83,027 8,164 8,700
Inventories 10,277 8,898 21,436 18,342 10,663 11,040
Prepaid expenses &
3,889 49,634 33,209 34,492 26,092 32,048
other current assets
Total current assets 115,902 108,461 160,044 162,014 68,744 76,203
Net plant, property &
35,327 32,072 91,511 86,662 36,253 32,603
equipment
Investments 31,320 32,133 175,563 166,799 9,073 8,996
Deferred income
10,973 9,705 0 8,601 23,544 33,172
taxes
Other assets 64,286 55,580 12,912 6,497 74,868 70,716
Total long-term
141,906 129,490 279,986 268,559 143,738 145,487
assets
Total assets 257,808 237,951 442,030 430,573 212,482 221,690

Liabilities
Short-term
borrowings & notes 48,265 46,984 91,368 85,069 26,965 23,797
payable
Accounts payable 23,282 21,296 53,197 48,570 23,929 23,333
Other current
23,053 22,001 10,860 9,823 25,996 38,051
liabilities
Total current
94,600 90,281 155,425 143,462 76,890 85,181
liabilities
Long-term debt 102,666 93,301 88,949 86,944 67,254 51,326
Other liabilities 25,611 25,131 35,939 47,041 33,337 41,347
Total liabilities 222,877 208,713 280,313 277,447 177,481 177,854

Shareholders’ equity
Common equity 41 41 3,567 3,529 14 15
Retained earnings 21,218 15,634 158,127 149,282 17,627 26,168
Treasure stock,
reserves & other 13,672 13,563 23 315 17,360 17,653
equity
Total equity 34,931 29,238 161,717 153,126 35,001 43,836
Total liabilities and
257,808 237,951 442,030 430,573 212,482 221,690
equity
 Honda
2017 2016

18,919 15,126
23,744 24,468
12,255 11,673
3,974 4,211

58,892 55,478

65,627 60,601
27,586 27,396
1,091 1,607
17,120 16,953
111,424 106,557
170,316 162,035

10,440 9,846

9,103 8,547
29,228 30,231

48,771 48,624
36,758 33,829
19,247 19,480
104,776 101,933

773 765
60,308 55,060

4,459 4,277

65,540 60,102
170,316 162,035
 Income Statement
General
In millions of US$ Ford Toyota
Motors
(except per share) 2017 2016 2017 2016 2017 2016
Revenue 156,776 151,800 255,286 236,786 145,588 149,184
-Cost of goods sold 140,436 135,087 210,302 188,453 114,869 120,499
Gross profit 16,340 16,713 44,984 48,333 30,719 28,685
-Operating expenses 11,527 10,927 26,535 24,540 20,703 18,723
ÉÉSelling, general &
11,527 10,972 16,937 15,740 9,575 10,354
administrative
ÉÉOther operating
0 0 9,597 8,800 11,128 8,369
expense
Operating income 4,813 5,786 18,449 23,793 10,016 9,962
-Non-operating
-3,335 -1,055 -1,845 -1,079 -1,847 -2,046
(income) loss
++Interest expense,
1,023 608 271 295 309 381
net
+++Interest expense 1,133 894 271 295 575 563
--- Interest income 110 286 0 0 266 182
ÉÉOther non-operating
-4,358 -1,663 -2,116 -1,374 -2,156 -2,427
(income) loss
Pretax income 8,148 6,841 20,294 24,872 11,863 12,008
Income tax 546 2,245 3,356 5,592 15,727 2,581
Net income 7,602 4,596 16,938 19,280 -3,864 9,427
Reference items
EBITDA 13,266 14,458 33,350 37,346 22,277 19,781
EBIT 4,813 5,741 18,449 23,793 10,016 9,962
Common shares
3,901 3,902 3,263 3,338 1,420 1,524
outstanding
Earnings per common
1.91 1.16 5.6 6.18 -2.65 6.12
share
Honda

2017 2016
129,498 121,724
100,513 94,474
28,985 27,250
21,208 23,054
14,812 17,580

6,396 5,474
7,777 4,196
-1,538 -1,101

-184 -86
115 151
299 237
-1,354 -1,015
9,315 5,297
3,612 3,388
5,703 2,872

14,014 9,704
7,777 4,197
1,811 1,811

3.16 1.59
 Cash Flow Statement
In millions of US$, Ford Toyota General Motors
except per share
2017 2016 2017 2016 2017 2016
Cash flows from operating activities
Net income 7,602 4,596 16,938 19,280 -3,864 9,427
Non-cash Items -792 3612 293 1,451 11,956 -2,833
Depreciation &
8,453 8,717 14,902 13,554 12,261 9,819
amortization
Change in non-
2,833 2,925 -551 2,903 -3,015 580
working capital
Cash used for
18,096 19,850 31,582 37,188 17,338 16,993
operating activities
Cash from investing activities
Investments in
property, plant & -7,049 -6,992 -10,940 -10,341 -8,453 -8,384
equipment
Net change in long-
-14,713 -17,173 -22,233 -7337 0 0
term investment
Other investing
2,370 -1,187 5290 -8,854 -15,619 -26,635
activities
Cash used for
-19,392 -25,352 -27,883 -26,532 -24,072 -35,019
investing activities
Cash flows from financing activities
Dividends paid -2,584 -3,376 -5,869 -5875 -2,233 -2,368
Repurchase of
-131 -145 -6,512 -2,528 -3,507 -2,500
common stock
Increase (decrease)
6,260 11,028 9,536 5,492 18,455 21,027
in debt
Other financing
-151 -107 -626 -620 -305 -163
activities
Cash from financing
3,394 7,400 -3,471 -3,531 12,410 15,996
activities
Effects of exchange
489 -265 -125 -1,666 348 -213
rate changes
Net change in cash 2,587 1,633 103 5,459 6,024 -2,243
Reference items
Cash & cash
38,927 38,827 52,999 48,736 23,825 24,415
equivalents
 Honda
2017 2016

5,703 2,872
-4,127 2,252
6,237 5,508

373 963

8,186 11,595

-5,724 -7,055

0 0

-413 -239

-6,137 -7,294

-1,500 -1,322
-0.1 -0.1

3,312 1,280

-744 -752

1,068 -794

-12 -1,124
3,105 2,383

18,919 15,126
 Comparative Financial Ratios
Ford Toyota General Motors
2017 2016 2017 2016 2017 2016
Liquidity Ratios
Cash ratio 0.41 0.43 0.34 0.34 0.31 0.29

Acid test ratio (Quick

1.08 0.55 0.68 0.76 0.42 0.39
ratio)

Current ratio 1.23 1.20 1.03 1.13 0.89 0.89

Efficiency
Days receivables 146 27 112 127 21 21
Days payables 61 57 92 94 76 71
Days of inventory 27 24 37 36 34 33
Financial leverage
Debt to total assets 0.86 0.88 0.63 0.64 0.84 0.80
Leverage ratio 6.38 7.14 1.73 1.81 5.07 4.06
Long-term leverage
2.94 3.19 0.55 0.57 1.92 1.17
ratio
Total debt to EBITDA 16.80 14.44 8.41 7.43 7.97 8.99
Interest coverage
4.25 6.42 68.08 80.65 17.42 17.69
ratio
Profitability
Return on common
21.8% 15.7% 10.5% 12.6% -11.0% 21.5%
equity
Return on assets 2.9% 1.9% 3.8% 4.5% -1.8% 4.3%
Return on invested
1.4% 3.3% 4.5% 6.0% -1.5% 7.8%
capital
Gross margin 10.4% 11.0% 17.6% 20.4% 21.1% 19.2%
EBITDA margin 8.5% 9.5% 13.1% 15.8% 15.3% 13.3%
Operating margin 3.1% 3.8% 7.2% 10.0% 6.9% 6.7%
Pretax margin 5.2% 4.5% 7.9% 10.5% 8.1% 8.0%
Net income margin 4.8% 3.0% 6.6% 8.1% -2.7% 6.3%
Growth and valuation
One-year sales
3.3% 0.7% 7.8% 5.1% -2.4% -12.9%
growth

One-year operating
-16.8% -17.8% -22.5% -5.4% 0.5% 79.9%
income growth

One-year net income

65.4% -37.7% -12.1% -3.0% -141.0% -2.7%
growth

Enterprise multiples 2.95 2.54 8.99 7.19 2.36 2.1

Enterprise value-to-
0.25 0.24 1.17 1.13 0.36 0.28
sales
Price earnings ratio
7.85 6.92 5.60 6.18 5.80 5.51
(P/E)
Activity ratio
Asset turnover 0.61 0.64 0.58 0.55 0.69 0.67
Accounts receivable
2.50 13.67 3.25 2.85 17.83 17.15
turnover
Inventory turnover 13.67 15.18 9.81 10.27 10.77 10.91
Accounts payable
6.36 6.57 9.31 9.39 4.84 4.97
turnover
Cash conversion
108 104 104 100 26 27
cycle (days)
 Honda
2017 2016

0.39 0.31

0.87 0.81

1.21 1.14

67 73
33 33
45 45

0.62 0.63
1.60 1.70

0.56 0.56

7.48 10.50

67.63 27.7

8.7% 4.8%

3.3% 1.8%

3.4% 1.8%

22.4% 22.4%
10.8% 8.0%
6.0% 3.4%
7.2% 4.4%
4.4% 2.4%

6.4% 11.7%

85.3% -31.5%

98.6% -38.3%

7.32 9.17

0.79 0.73

9.82 16.11
 0.76 0.75

5.45 4.97

8.2 8.09

11.06 10.52

82 82