In week twelve you selected a publicly traded company and found their annual report. Now that you have their financial information I would like you to perform a ratio analysis on the financial statements. Focus on the financial statement analysis chapter

PPTUpdated.pptx

• 15 minute presentation
• . Be sure to include some background on your company in your presentation.Submission Details:

15 minute presentation

Company name is Heartbeam Company

Attached is the link to an annual report of the firm:

https://www.sec.gov/Archives/edgar/data/1779372/000121390021046840/fs12021_heartbeaminc.htm

https://www.wsj.com/market-data/quotes/BEAT/financials

Attached is the link to the income statements, balance sheet and cash flow statements of the company. https://www.heartbeattrust.ie/wp-content/uploads/2021/02/Annual-Report-HBT-2019

FORD MOTORS

Vamshi Pratap Bokketi

CC BY-SA

1

Background
Founded in 1903 by henry fond with other 11 associates
Common stock sold in 1956 for first time
It is shares are worth \$ 10.86
Net income in 2019 was \$ 47 millions

Selected ratios

Quick Ratio
Earnings per Share (EPS)
Asset turnover ratio
Debt-Equity Ratio

Quick ratio determines the ability of the company to pay off its short term liabilities

Earning per share measures the money that each shares earned during that financial period.

Asset turnover measures how much is being generated by each assets in the company

Debt ratio measures the relative amount of a company’s assets that are provided from debt

3

Selected ratios
Return on equity
Return on assets ratio
Interest coverage ratio
Operating margin ratio

Operating margin ratio compares the operating income to its net sales to determine the efficiency

Return on equity determine the company`s efficiency at using the equity to generate profit.

Interest coverage ratio measures how easy it is for the company to pay all interest expenses

4

Current Ratio

CR = Current assets / Current liabilities
QR(2019) = 114,047 / 98,132 = 1.16217951
AND qr (2018 = 114,649 / 95,569 = 1.199646
Industrial quick ratio 1.04 and 0.89 for 2019 and 2018 respectively

5

Earnings per Share (EPS)

2019
2018

Ford Motors
0.01
0.92

Industry
N/A
N/A

Asset turnover ratio

A t r = Net sales / Average total assets
ATR(2019)= 155,900 /((258,537+256,540)*0.5) = 0.60534639
ATR(2018)= =160,338 /((256,540+258,496)*0.5) =0.622628
No industrial ratio available

Debt-Equity Ratio

DER= total liabilities / Shareholder’s equity
DER(2019) = 225,307/33,230 = 6.78022871
DER(2018) = 220,474/36,066= 6.11307
Industrial ratio 1.01 for year 2018, year 2019 is not available

CC BY-SA

Return on Equity (ROE)

ROE= Net income / Shareholder’s equity
ROE(2019) = 47 /33,230 =0.001414385
ROE(2018) = 3,677 / 36,066 = 0.101951977
Industrial values 5.4% for 2018, values for 2019 not available

9

Return on assets ratio

Return on assets ratio = Net income / Total assets
ROA (2019)= 47/ 258,537 =0.000181792
ROA (2018)= 3,677 / 256,540 = 0.014333047
Industrial values 4.1 % for 2018, values for 2019 not available

Interest coverage ratio

Interest coverage ratio = Operating income / Interest expenses
ICR (2019) = 19,110/1,020 =18.73529412
ICR (2018) = 22,756 /1,238 = 18.3812601
Industrial values 2.67 for 2018, values for 2019 not available

11

Operating margin ratio
Operating margin ratio = Operating income / Net sales
For year 2019 = 19,110/ 155,900 = 0.122578576
For year 2018 = 22,756/ 160,338 =0.141925183
Industrial values 6% for 2018, values for 2019 not available

Areas of improvement
Return on assets is 1.4% while the industrial value is 4.1 for 2018. This is the place where improvements need to be made
EPS is very low for any industry. Any amount that is less than \$ 1 is very low bearing in mind this is an international company.
However, other ratios calculated above are good since they are above the industrial ratios

REFERENCES
Hoffman, B. G. (2013). American icon: Alan Mulally and the fight to save Ford Motor Company. New York: Crown.
Billstein, R., & Mazal Holocaust Collection. (2014). Working for the enemy: Ford, General Motors, and forced labor in Germany during the Second World War. New York: Berghahn Books.
Journal, W. S. (2020, December 31). F | Ford Motor Co. Annual Income Statement – WSJ. Retrieved from https://www.wsj.com/market-data/quotes/F/financials/annual/income-statement
Car Carriers, Inc. v. Ford Motor Company. (2015).

14

Thank you

15

image1

image2

image3

image4

image5

image6

image7

image8.svg

.MsftOfcThm_Accent1_Fill {
fill:#30ACEC;
}
.MsftOfcThm_Accent1_Stroke {
stroke:#30ACEC;
}

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
\$26
The price is based on these factors:
Number of pages
Urgency
Basic features
• Free title page and bibliography
• Unlimited revisions
• Plagiarism-free guarantee
• Money-back guarantee
On-demand options
• Writer’s samples
• Part-by-part delivery
• Overnight delivery
• Copies of used sources
Paper format
• 275 words per page
• 12 pt Arial/Times New Roman
• Double line spacing
• Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.