Comparison between Ford ,Toyota and GM
Conclusion
Ford and Toyota are both multinational companies whose vehicles are sold all over the world. 2008 Financial crisis brought huge loss to the whole vehicle manufacturing industry, especially those US manufacturers like Ford and GM. Therefore earnings in 2009 for all three companies are at bottom position, $0.91 per share for Ford, $1.319 per share for Toyota. The earning per share for GM in 2009 ($113.18) accounts for government bailout practices. The recovery of world markets pushed sales and revenue to a new level. Ford growth more than 140% in 2010 fiscal year, Toyota also growth at 95%. However GM still struggled for its revenue. The TIE (times interest earned) and debt to assets ratio show Toyota has the best financial condition. Risk for Toyota’s failure to payout interest is much lower than Ford. Dividend payout ratios, dividend per share and dividend yield suggest that investors of Toyota have greater proposition of revenue from dividends. Larger dividends also reflect a healthy financial condition of company. In recent 5 years, average annual growth rates for Ford, Toyota and GM are 75.97%, 98.29% and -22.87%, separately. In 2012 fiscal year, Ford decided to resume dividend policy and restart issuing dividend again. Because of this financial policy, it enhanced investors’ value.
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