For this project, you will use the provided financial statements for Ford Motor Company. Take the two years given and perform the required financial ratios listed below. First compare the ratios of each company for the past two years to each other, then compare the two companies to each other. In comparing the ratios you will need to discuss which year and which company has a better ratio and why you think that. Justify your rationale and explain your findings in detail in your analysis. Write at least one paragraph discussing your results. Look at 2015 and 2016 financial statements for Ford Motor Company and General Motors.

1. What is the ratio used for, what is its purpose
2. Write out formula
3. Fill out formula using the two years financial statement information for both companies
4. Your interpretation of ratio in at least one paragraph

2016 2015

Profitability

• Earnings Per Share

1)

2)

3)

4)

• Return on Sales

1)

2)

3)

4)

• Return on Equity

1)

2)

3)

4)

Leverage

• Debt Ratio

1)

2)

3)

4)

• Debt to Equity Ratio

1)

2)

3)

4)

Liquidity

• Current Ratio

1)

2)

3)

4)

• Acid-Test Ratio

1)

2)

3)

4)

Activity

• Asset Turnover

1)

2)

3)

4)

• Inventory Turnover

1)

2)

3)

4)