BUSINESS

For this project, you will be analyzing the financial statements (contained in the Form 10-K) of  FORD AND TESLA. You will draw conclusions about the overall health of each company.  Your project will culminate in a written paper that details your analysis.

 

You will need to locate Ford and Tesla’s company’s Form 10-K, which is the annual report that publicly-held companies file with the Securities & Exchange Commission (SEC). The Form 10-K is usually quite long, exceeding 100 pages in most cases. You will want to watch the video provided to see how this can be done quickly and efficiently.

Obtain the form 10-K for the most recent year (NOTE: the 10-K is dated for the year issued but the actual financial statements may be for the previous year. ie. 2022 but the financial statement were for the year ended 2021).

To find a Form 10-K, go to http://www.sec.gov/edgar.shtml#.VOhw6vnF9mX. You can also view a short video about how to locate a Form 10-K on the SEC EDGAR site; you can view that video at

Obtain the most recent 10-K for Ford Motor Company and Tesla Inc.

 

Your source documents for the information you will be using for this project will primarily be your companies’ Form 10-Ks. To follow are a list of questions and other requirements. You are to use the Form 10-Ks for your companies to answer the questions.

Write your answers in paragraph form (do not use bullet points). Use headings to separate each section. You may want to use tables for numbers (i.e., ratio presentations). Please use proper English, grammar, and spelling

Write a 200 – 400 word paragraph including general facts about the industry in which your companies operate. Also summarize each company (in your own words) from reading the Form 10-K. Do not copy and paste information; put the information in your own words.

 

Statement of cash flows

1.           Now locate the statement of cash flows. List the page number from the most recent Form 10-K where you found it.

2.           Which method (direct or indirect) does the company use to report cash flows from operations? How do you know?

3.           Did the company buy or sell more plant assets in the most recent year as compared to the prior two years?

4.           Did the company buy back any of its own stock? Did it pay any dividends?

5.           What type of activity (operating, financing, or investing) in total generated the most cash flows for the company in the most recent year? What conclusions can you draw?

Ratio analysis

Calculate and interpret the following ratios and measures. You should complete the following in Excel and embed the worksheet in the word document you will be submitting.

 Liquidity Measures – working capital, current ratio, acid-test ratio

Activity Measures – Total Asset Turnover, Inventory Turnover, Numbers of Days in A/R

Profitability Measures- ROI, DuPont Model. Return on Equity

Financial Leverage Measures – Debt Ratio, Debt/Equity Ratio

Horizontal Analysis (most recent year only -income statement and balance sheet )

 Common Sized Statements (Vertical Analysis) (most recent year only -income statement and balance sheet )

Overall analysis

This section is the overall analysis of your two companies. Which company do you believe is healthier? Why? Which company would you be more likely to invest in? Why? Be specific in your reasoning.

Be sure to fully support your conclusion of which company is healthier. Be sure to include a variety of measures, not just one measure of financial health.

Submission instructions

You will be condensing all of the project parts into one cohesive document that is no more than ten double-spaced pages (11 point font, Calibri or Candara, 1 inch margins, Word format.) Use headings to make your document via Turn it In on Moodle. The embedded horizontal and vertical analysis will take up a lot of the pages.

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