Ford Motor Company: Basic Financial Ratios
(4 pages of text)
Case (Pub Mat)
In January 2018, an investment portfolio manager learned of a safety recall for Ford Motor Company (Ford) involving faulty airbags that failed to deploy upon collision. An investigation by U.S. regulators found that the company had been aware of these faulty airbags but had not taken proactive measures to mitigate the potential damage. As a result, in just one day, the share price for Ford dropped from $13.10 to $12.18 per share. The portfolio manager needed to anticipate the future of Ford and come up with a plan to protect his investors' wealth.
This case is suitable for finance and accounting courses at the undergraduate or graduate level. After completing the case, students will be able to do the following:
- conduct a business size up and financial ratio analysis;
- understand the differences and similarities between comparable firms; and
- assess a company’s financial statements and use ratios to understand the company’s financial position.
- Identify any major issues with a company and suggest an appropriate investment strategy.
United States, Large, 2018
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