金融Essay代写范文：Ford Motors Financial Analysis

本文是金融专业的留学生Essay代写范例，题目是“Ford Motors Financial Analysis（福特汽车财务分析）”，福特汽车公司是由亨利·福特于19世纪初创立并注册成立的一家跨国汽车制造商公司，总部位于密歇根州的迪尔伯恩。该公司主要生产轿车、拖拉机、卡车和其他汽车零部件。

Company Background公司背景

Ford Motors is a multinational automaker company founded and incorporated by Henry Ford in the early 19th hundreds with its headquarters located in Dearborn, Michigan. Essentially the company produces passenger cars, tractors, trucks, and other automobile spare parts.

In the late 1890’s Henry Ford created his first experimental car in his workshop, in Detroit. Ever since that successful conduct experiment, he was inspired to form his company, Ford Motors company and assembled his first car on July 08,1903 at the Mack avenue. A few years later, the demand for the car increased which led to a new model T to be introduced which also led to a high demand for the car. Because of that Ford had to expand his manufacturing plant so it could produce in mass quantities. Hence after all of the success, Ford established the first U.S branch in Kansas City, Missouri and his first overseas plant in Manchester, England in 1911. He also launched the world’s first moving assembly line for automobiles in 1913 and in 1914 he instituted the five-dollar daily wage for an eight-hour day (instead of the two dollar for nine hours) to boost labor efficiency.

At this rate Ford had sold more than 500,000 cars all over the world with the help of its international sales branches like Paris, South Africa, Australia, etc, at the end of the 1920’s. However, after a few years, the model T as popular as it was, was losing its market share to its competitors due to its utilitarian style. Customers demanded a different style, a more luxuries one fortunately enough for the company, in 1922 it acquired the Lincoln Motors company (1917) which was going through some financial difficulties itself. This helped Ford create luxury cars like the original Lincoln and Continentals as well which were a great hit. By the end of the 19th century, Ford was mainly focused on its service performances with concerns regarding vehicles.

按照这个速度，20世纪20年代末，福特在巴黎、南非、澳大利亚等国际销售部门的帮助下，在全世界售出了50多万辆汽车。然而，几年后，尽管T型车很受欢迎，但由于其实用主义风格，它的市场份额正在被竞争对手抢走。顾客要求一种不同的风格，一种更奢侈的风格，幸运的是，对公司来说，1922年，它收购了林肯汽车公司(1917年)，该公司本身正经历一些财政困难。这帮助福特创造了豪华汽车，如最初的林肯和大陆以及这是一个巨大的成功。到19世纪末，福特主要关注的是汽车的服务性能。

Beginning the 21st century, two automobile manufacturing companies (General Motors and Chrysler LLC) with Ford Motors fell in a financial crunch due to the subprime mortgage crisis followed by the great recession (2007-2009). Therefore, the current president George W. Bush announced an urgent rescue plan for these three struggling automakers. The congress and the government (TARP) funded a $700 billion and a $13 billion loan for those companies until 2009 so they can recuperate by showing financial capability and pay back the loan in full. Allegedly, the loans were first given to the two companies, albeit Ford already had enough money to run its company. In 2009, Ford saw a rise in sales and market share thanks to the government’s plan (“cash for clunkers”) that let customers trade in old cars for new ones with a $4500 budget. With that, Ford implemented a strong branding strategy as well as focusing on the companies high selling brands and also executing a number of cost-cutting steps.

Currently, Ford Motors embodies an approximate of $127 billion-dollar multinational enterprise, making it to be the world’s second largest automobile company. Which besides manufacturing vehicles also operates Ford credit that provides credit lines to Ford motors products at dealerships and helps customers with commercial financing. Generating an income of about $3 billion as well as owning the biggest auto rental company, Hertz corporations. As stated above the company still produces/manufactures luxury cars like the Jaguar, Lincoln, Volvo, Ashton Martin, that he acquired in the early 1990’ through shares. As of today, it is earning a slow income but still pushes to make a difference even in a fluctuating stock market index.

Financial Statement财务报表

A financial statement is a recorded document that showcases a company’s financial and operational performance over a specific period of time. For a firm like Ford Motors to help it be financially stable as well as being independent, it needs to look at how its going to create profit, repay debts, pay-back operations costs, etc which is basically reducing the company’s weakness areas and using its strength as an advantage. Usually Investors, creditors and market analyzer look over the financial statement to determine the company’s potential earnings and financial health, which can be done by using the three major types of financial reports which are: The Balance sheet, Income statement and Cash flows.

财务报表是一种记录文件，它展示了公司在特定时期内的财务和经营业绩。对于像福特汽车这样的公司来说，要想保持财务稳定和独立，就需要考虑如何创造利润、偿还债务、偿还运营成本等，这基本上是在减少公司的弱点，将其优势作为优势。通常，投资者、债权人和市场分析者查看财务报表以确定公司的潜在收益和财务状况，这可以通过使用三种主要类型的财务报告来完成:资产负债表、损益表和现金流量。

With the help of its first successful launch of branch in Canada and England, Ford Motors has now expanded its locations in over 125 countries all over the world. Here is the overview of its revenues gathered by its international operations/sales from 2010 to 2020:

International financial activities国际金融活动

Ford Motors is a multinational automaker company, which means it runs its operations and manufacturers in more than several countries. As I have stated in page 2 of the financial statement, Ford has over 125 locations around the world, that has helped the company effectively operate the foreign exchange market and have a comparative advantage. Since Ford has many subsidiaries, it has helped it secure the free trade agreement between southern countries like Asia and Mexico and also sustaining world trade relations overall. That has given Ford Motors a bit of a competitive advantage compared to other competitors which in turn, has established a beneficial partnership for the company and the United States. Initially the company was able to expand its foreign trade opportunities as well as compete with other industries in foreign exchange and international trade market by associating with the marketing term “laissez-faire” that is known globally, which means letting things go in course of their own action.

福特汽车公司是一家跨国汽车制造商公司，这意味着它在多个国家经营业务和制造企业。正如我在财务报表的第二页所说，福特在全球有超过125个地点，这帮助公司有效地运营外汇市场，并具有比较优势。由于福特有许多子公司，它帮助它确保了亚洲和墨西哥等南部国家之间的自由贸易协定，并维持了世界贸易关系的整体。这让福特汽车相对于其他竞争对手有了一点竞争优势，这反过来也为福特和美国建立了有利的合作关系。起初，公司能够扩大其对外贸易机会，并与其他行业在外汇和国际贸易市场上的竞争，与市场营销术语“自由放任”，这是众所周知的，让事情顺其自然。

When it comes to managing the financial aspect of the company and its subsidiaries abroad, there are many challenges that a corporation faces. The main one for Ford and any firm that is doing business internationally is the global financial management. It is a window to see how the world’s economy is doing and how that can affect your/their business.

Three critical challenges rise from global financial management:

risk management,

foreign exchange rates, and

regulations of banks.

Risk management happens when the goods you purchased or sold in another country might be exposed to high prices due to the countries in contact having higher inflation rates, but it can luckily be solved with strong fiscal polies as well as a conducted financial statement.

Foreign exchange rates are also one of the hardest things to foresee since it changes every time creating uncertainty for companies. Constant fluctuations of exchange rates in a countries can severely slow down a company’s business abroad and expose them to higher interest rates. When it comes to bank regulations, some countries go hand in hand with banking institutions such as the world bank and the international monetary fund. That can cause a problem for global businesses because those institutes recommend banks to not take risks in markets especially if they are emerging countries.

During the recent times, Ford had faced four financial challenges in an attempt to restructure.

The first one was regarding costs and weak earnings. In 2019, Ford announced that it would be applying an $11 billion reconstructive plan so that the company focuses solely on SUV’s and trucks. This initiative was not planned strategically nor was it financially concise, that it made the company’s net income to decrease by 57% ($423 million), year after years with the aggregate revenue also plunging by 1.8% (about $37 billion).

The second one was because of weak guidance, that didn’t move the adjusted earning but that was supposed to increase if they followed it up. but since its stock is so lowly priced, it doesn't actually change anything anyways, and the downside is minimal.

The third one is terms of weak sales, like in North America ever since they stopped producing sedans, the whole company market share had decreased while the revenue increased but still the segmented auto revenues heavily weakened. In China as well, the once promising sales land has slipped and fell of about 27% in revenues (0.6% decrease in market share).

The fourth one would be the stocks, even though the auto-industry is known to be cyclical in nature, the F-series of Ford motors have been going strong. But as it is recurring, there will be a possible slowdown that might or not create a recession. After all, one of the man indicators of a high consumer spending scale are auto sales, and Ford will not be getting any more shares with how it is going besides the earning growth. So as of now with the exception of the dividend yield’s sustainability, investors are not advised to invest in auto stocks.

第四个因素是股票，尽管汽车行业的本质是周期性的，但福特的f系列汽车一直表现强劲。但随着危机的反复发生，可能会出现经济放缓，而这种放缓可能导致经济衰退，也可能不会。毕竟，衡量消费者支出规模的主要指标之一是汽车销售，除了盈利增长，福特不会从汽车销售的表现中获得更多份额。因此，目前除了股息收益率的可持续性外，不建议投资者投资汽车类股。

Hence to solve these problems now or in the future, the company’s current key responsible international finance managers: David Webb, John Lawyer and William Clay Ford jr. need to over review their strategies. David Webb is the current treasurer at Ford, he is responsible for managing the financial aspects of the company by making decisions on investments or acquisitions. He also works with executive managements to supervise the company’s global objectives and cash management. Prior to being an official treasurer, Webb served as Ford's assistant treasurer, directing the company's global Capital Markets, Capital Strategy, Risk Management, Affiliate Finance, banking, and Treasury Operations functions. Webb was also previously director of financing, where he was in charge of Ford global issuance strategy and credit's funding programs. When he first started his career in 2003 at Ford Motors, he was able to get the director of risk management position where he developed strategies by analyzing overall performances of the company thus far. At the same time, he was the financial strategy department director, where he supervised liquidity and funding strategy, and the company’s global capital.

Then David reports to John Lawler who is the chief financial officer of Ford Motors. John Lawler as a CFO is mainly responsible for the whole finance functions plus taxes, financial accounting planning, treasury, investor relations, etc. previously he was the chief executive officer of Ford’s LLC Autonomous vehicles and was vice president where he brought the driverless market sector by leading the team. He was also Vice President of Strategy at the time. He led Corporate Strategy, Business Development, and Global Data Insights and Analytics in this position, facilitating the development of Ford's long-term enterprise strategy and assisting in the delivery of vital partnerships such as those with VW and Mahindra.

然后大卫报告给约翰劳勒谁是首席财务官福特汽车。首席财务官John Lawler主要负责整个财务职能加上税收，财务会计规划，财政，投资者关系等，此前他是福特有限责任公司自动驾驶汽车的首席执行官，并担任副总裁，他带领团队带来了无人驾驶市场部门。他也是当时的战略副总裁。在此职位上，他领导公司战略、业务发展和全球数据洞察与分析，促进福特长期企业战略的发展，并协助交付与大众和马恒达的重要合作伙伴关系。

From 2016 to 2017, Lawler worked for Global Markets as a vice president, corporate controller, and chief financial officer. He was a vice president/chairman, chief executive officer of Ford China before taking on the position of corporate controller. Lawler was in charge of Ford's activities and company leadership in China at the time. Ford's growth had hit record levels before he left in June 2016, with over one million Ford vehicles sold in 2015 and sales up another 14% in the first quarter of 2016. Lawler has extensive international business management experience, especially in the areas of market research, pricing strategy, and product programs. From January 2007 to 2010, he was a key member of the team that led the company's North American turnaround, serving as controller of U.S. Marketing and Sales before heading to China in 2010. In the United States, he was in charge of core business strategies such as pricing and business planning, as well as leading the company's attempts to simplify distributor policies and reduce uncertainty. He joined Ford in 1990 and has worked in North America, Europe, and Asia in a number of capacities.

Ultimately Lawyer then finally reports back to the executive chair Mr. William Clay Ford Jr who is the leader of the company for final touches in the international finance activities with all of the financial team’s collective effort put together with the help of these financial institutions that have helped partner up with Ford, such as: Citibank, G-mac, HDFC, etc.

Capital structure and global subsidiaries资本结构和全球子公司

For companies like Ford, Debt is an essential part that constantly needs to be reviewed. Debt is for the most part is money borrowed by another party that has to be paid back, sometimes even with interest. For big companies like Ford debt arrangement can help make large purchases that is normally not authorized. It is a big discussion topic amongst investors since it is a key cause in companies facing bankruptcy. If Ford has too much debt and is on the verge of defaulting, the company may need to take drastic measures, such as debt reduction and asset sales. To determine the amount of debt, we use the Debt-to-Equity Ratio, which is measured by diving the long-term debt by the stockholder’s equity to find the company’s financial leverage. First, we see Fords recent total Debt history and as of now Ford Motors debt to equity ratio 5.28%.

对于像福特这样的公司来说，债务是一个需要不断评估的重要部分。债务大部分是另一方借的钱，必须偿还，有时甚至连本带利。对于像福特这样的大公司来说，债务安排可以帮助他们进行通常未获授权的大规模收购。这是投资者讨论的一个大话题，因为它是公司面临破产的一个关键原因。如果福特负债过多，处于违约的边缘，可能需要采取削减债务和出售资产等严厉措施。为了确定债务的数额，我们使用债务权益比率，它是通过将长期债务与股东权益进行对比来衡量的，从而找到公司的财务杠杆。首先，我们看到福特最近的总债务历史和目前福特汽车的债务权益比5.28%。

According to the graph, we can see that Ford's total debt increased between 2017 and 2020, reaching $161 billion in the fourth quarter of 2020. Ford's overall debt was about $150 billion in the years leading up to 2020. Ford's overall debt rose the most in 2020, reaching a new peak of more than $170 billion in second quarter of 2020, as the firm took on debt to raise liquidity during the outbreak of COVID-19. But we can see that by the fourth quarter its total debt slightly decreased after it paid off its credits. When we compare it to the total breakdown of the company, we can see that most of its debt came from the credit and automotive line. We can see on the graph above and below that the Ford’s credit line made up of 85% of the total debt in the last quarter of 2020 and accounted nearly 140 billion dollars in contrast to the automobile line that accounted $20 billion.

Ford Credit's debt is expected to decrease in 2020 due to the fact that it operates under a radically different business model than Ford Automotive. As I have mentioned above, Ford credit provides credit lines to Ford motors products at dealerships and helps customers with commercial financing, so it is the company's captive financial unit, offering services such as lending and leasing to wholesalers and retail customers. Because of the pandemic, its credit line which consists of also vehicles like the Lincoln may have an effect on the amount of originations. In other words, Ford Credit's debt rises during a strong economic cycle but falls when the automotive market climate deteriorates because less consumers will sign up for Ford Credit's leasing contracts. Furthermore, Ford Credit's debt is relatively secure since it is typically backed by cash obtained from Ford's finance receivables.

The other side of the breakdown is the automobile sector. As seen, its automotive debt grew in by more than 100% in 2020, reaching nearly $40 billion in the second quarter. Prior to 2020, Ford's automotive debt was around $15 billion, but it began to grow in the first quarter of 2020, to around $25 billion, before peaking at $40 billion in the second quarter. When the recent epidemic hit, in fear of increased debt, Ford took an 8-billion-dollar loan triggering the automotive debt. The extra cash drawn from the credit facilities was supposed to help Ford weather the COVID-19's negative effects. For your knowledge, the pandemic has forced Ford to shut down most of its assembly plants. Ford would have repaid the majority of the debt drawn from its credit facilities by the fourth quarter of 2020, reducing its automotive debt to $24 billion.

Then finally we see its liquidity assets, the net debt. In order to decide if a corporation is overleveraged or has too much debt in relation to its liquid assets, net debt is used. A business with a negative net debt has little debt and more cash on its balance sheet, while a company with a positive net debt has more debt on its balance sheet than liquid assets.

FDI Activities外国直接投资活动

Foreign Direct Investment is one of the foreign market entry strategies used by firms to invest in a manufacturing or service sectors. If a company like Ford desires to do an investment abroad it needs to consider a lot of risk factors like; choosing where to invest, low wage rates, government incentives to invest, infrastructure, tax rates, political stability, etc. and what type of FDI to use either a Greenfield or Acquisition investment, which is when a company builds its plant from the start or if it wants to buy another company in that country its investing.

外国直接投资是企业用于投资制造业或服务业的外国市场进入战略之一。如果像福特这样的公司想要在国外投资，它需要考虑很多风险因素，比如;选择投资,低工资率,政府鼓励投资、基础设施、税率、政治稳定、等,使用什么类型的外商直接投资新建或收购投资,这是当一个公司从一开始就建立工厂或者想购买另一个公司在那个国家投资。

In the United States, foreign investments are highly encouraged and welcomed without a substantial restrictions or control by the federal, state, or local government. The Government even facilitates privatization (selling a state-owned company to private investors). FDI plays an important role in the U.S. economy, it provides prosperity and growth, creates additional jobs, pushes exports and overall is a source of capital and provides higher revenues for a country like the U.S and companies.

Ford has many foreign investments like Mexico, Europe, India, south Africa, etc. Ever since the 19 hundred Ford have been interested in investing in Mexico. It was the first to open an automotive assembly plant in 1925, and other American and Mexican companies followed suit in the following years. Nonetheless, imports supplied 53 percent of domestic passenger car demand by 1960. Its import was getting bigger than its export. A few years ago, it had a couple of downturns because of the former president’s ban, because of that Ford had to abruptly stop an about $1.6 billion dollar car plant which stressed network worth of supplier that were hoping to get a huge number of customers and increase their potential economy.

A number of auto manufacturers had already began expanding in areas where the auto sector was in demand thinking the plantation was going to happen. However, amid former presidents Trump's pro-American policies, which global automakers have been struggling with since his election, Ford continues to expand its operations in Mexico.

As previously stated, after the company agreed to forego the $1.6 billion investment, it revealed that the Focus operations would be relocated to its Hermosillo facility. By oblige to the president some cars will still be made in Mexico, Ford's decision to abandon the San Luis Potosi project was a major "win" for him. Ford, on the other hand, announced in February 2017 that, in addition to Hermosillo, it will be going ahead with intends to increase many of its Mexican plantations in Chihuahua and Irapuato.

如前所述，在该公司同意放弃16亿美元的投资后，它透露福克斯的业务将转移到其埃莫西约工厂。出于好意，一些汽车仍将在墨西哥生产，福特放弃圣路易斯波托西项目的决定对他来说是一个重大的“胜利”。另一方面，福特在2017年2月宣布，除了hermoillo，它还将继续增加其在Chihuahua和Irapuato的墨西哥种植园。

So, after all these complications in the future Ford may come back to Mexico since it still has other operations there, with the future president’s acceptance it could potentially happen. Another one of its newer investments is in South Africa. It is said that it is estimating to invest about 1.05 billion dollars in operations, manufacturing and to expand productions of its pick ups and range rovers. According to Andrea Cavallaro, operations director of Ford's International Market Group, the investments would boost Ford's installed capacity from 168,000 to 200,000 vehicles.

Ford is joining global automakers Volkswagen, Toyota, and Nissan in increasing production in Africa, which is seen as a wide, untouched resource for new car sales by the industry. it is investing about $683 million in the improvements of infrastructure and new facilities at its plant in Silverton, a suburb of Pretoria, and $365 million in tooling upgrades at major supplier factories in South Africa. As part of the Ford-VW partnership, the plant will also produce Volkswagen pickup trucks. Ford would add 1,200 workers in South Africa as a result of the increased development, bringing the total number of employees in the country to 5,500.

Additionally, the carmaker's supplier network will add an estimated 10,000 new jobs. By 2024, Ford wants the Silverton plant to be fully energy self-sufficient and carbon free, according to Cavallaro. South Africa's automotive industry has lofty goals, placing it at the center of efforts to resurrect economic development and reduce unemployment by industrialization. South African President Cyril Maphosa said at Ford's announcement that the company had already assisted in the recruitment of 12 automotive component suppliers to the region.

The government's program, which is backed by investment and tax incentives, aims to more than double the industry's annual output to 1.4 million vehicles by 2035 and increase the proportion of auto components produced locally to 60% from 39%. The COVID-19 pandemic, on the other hand, has harmed the targets, with local sales and exports falling by about 30% last year. Another recent investment is of the January 2021 as Ford Motors company has announced to invest $580 million in Argentina so that it manufactures its trucks there.

政府的计划得到了投资和税收优惠的支持，目标是到2035年将汽车行业年产量提高一倍以上，达到140万辆，并将汽车零部件的本地生产比例从39%提高到60%。另一方面，COVID-19大流行破坏了这一目标，去年当地销售和出口下降了约30%。最近的另一项投资是2021年1月，福特汽车公司宣布将在阿根廷投资5.8亿美元，以便在那里生产卡车。

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