For each ratio you have chosen and calculated, compare and contrast the results between these two firms.

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Question:

For each ratio you have chosen and calculated, compare and contrast the results between these two firms. Most importantly, comment on how the differences in the basis of preparation of the respective financial statements, including the related accounting rules followed by each company, might impact the comparison of those ratios between these two firms. Hint: you will need to review the Footnotes to the Financial Statements and the Summary of Significant Accounting Policies for both MB and Ford to identify potential differences in the accounting standards used by both companies. Liquidity Ratios: Quick Ratio = Current Assets / Current Liabilities FORD: 2018: 114,649 / 95,569 = 1.20 2019: 114,047 / 98,132 = 1.16 MB: 2018: 121,613 / 97,952 = 1.24 2019: 127,800 / 105,802 = 1.21 Solvency Ratios: Debt to Equity Ratio = Total Liabilities / Total Equity FORD: 2018: 220,474 / 35,932 = 6.14 2019: 225,307 / 33,230 = 6.78 MB: 2018: 215,566 / 66,053 = 3.26 2019: 239,597 / 62,841 = 3.81 Profitability Ratios: Return on Assets (ROA) = Net Income / Total Assets FORD: 2018: 3,695 / 256,540 = 0.014 (1.44%) 2019: 84 / 258,537 = 0.0003