FINA3314: Financial
Statement Analysis
COMPARATIVE RATION ANALYSISFORD AND TOYOTA
DONE BY:
EBTIHAL AL-ARBASH
200700761
SABA SOLIMAN AL-MOHAWIS
201000230
HANEEN AL-FARWAN
FALL 2012
Table of content
 Abstract
 Introduction
 Ratio analysis of Toyota and Ford
 Brief history of the Ford and Toyota
 Profitability analysis
 Liquidity analysis
 Current assets
 SWOT analysis
 Findings
 Conclusion
abstract
 Ford Company has been in operation since 1903
when Sir Henry Ford with his other associates
established it. Kiichiro Toyoda established Toyota
Corporation in 1936. The two companies have grown
to become one of the two largest vehicle industry in
the world
Introduction
 The two companies control specified market size in the industry.
 Toyota is a motor company established in Japan, Asia while Ford is
a motor company established in North America.
 Despite the different locations, the two companies face each other in
terms of competition where each of the players is trying to increase
their market size.
 Ford has been associated with the manufacture of exceptionally
powerful vehicles, which are considered as heavy consumers of fuel.
Which is opposite of Toyota.
 Toyota has been engaged in making of vehicles, which have low fuel
consumption and usage.
Brief history of both Ford and Toyota

Toyota Corporation

The founding name for Toyota Motor
Corporation was Toyoda, which was changed
in the following year to Toyota due to
superstitious reasons.
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Ford Company

It was started with a mere $28,000
in cash when being established.

Initially the company engaged in production
of exceptionally light cars and tracks for the
Japanese and outside market.
1980 it was forced to open a branch in the
United States due to the heavy tax
impositions established on its products.
The company went public on 1956 Feb 24. At
the time, the company had approximately
four hundred shareholders.

The company is based in the United States in
Dearborn Michigan.

In the year 1990, Toyota started to include in
its manufacturing luxury vehicles, sports
vehicles, full sized trucks and pickups (Grant
2010).
The company went from being
private to public in 1999.
The company enjoys a wide market of over
two hundred markets across the six
continents.

Ford is currently rated as the fourth largest
company in vehicle industry.

The chief brands for the Ford Motor
Company are Volvo, Lincoln, Mercury and
Ford. The market for the Ford vehicles has
been on increase especially in countries in
Europe (Grant 2010). .
In 2009, Toyota was recognized as the
biggest car manufacturer in the world..
SWOT analysis of Toyota and Ford
Companies
Ford Company
 Strengths
1. Ford is a well-known brand
2. the hybrid technology
 Weakness
1. weak sales.
2. lack of flexibility of the company to suit market changes.
 Opportunities
1. the ability of the company to manufacture hybrid vehicles, which
are eco friendly.
2. the role it plays in appealing to the people as a national brand
during the period of crisis.
 Threats
1. the evolution of the crisis that the Ford Company has been facing.
2. The production process of the company has to improve or the
company will have to appeal for help to the public.
SWOT analysis of Toyota and Ford
Companies
Toyota Corporation

Strengths
1. hybrid technology.
2.the ability of the company to manage during the time of crisis compared to Ford Company.
This is due to presence of more retained returns or profits to attend to crisis (Lee 2009).
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Weakness
1. lack of protection against changes in demand and prices.
2. the company converts its invoices in terms of yen instead of dollars (Lee 2009). .
Opportunities
1.promotes the manufacturing of cars that are environmental friendly.
2. less risk of crisis compared to the Ford Company. (Lee 2009).
Threats
Currently Toyota Corporation is engaging in production of heavy engine vehicles.
The corporation to the threat of being exposed to high production costs that cannot be met by
the sales returns.
Findings
liquidity analysis :
Conclusion