Working CapitalReview of GeneralMotors and Ford Working Capital Review of General Motors and FordSubmitted To: Saad Hossain [Sdf]Fin 340Submitted By: Group Ashfeque Us Salaheen 102 0172 030Farhaj Ahmed Rishan 121 0833 020Raanul Haque 102 0873 030Sh!ul Alam "han 102 0022 030A#aul $in %aani 103 0030 030Au&us# 12' 2014!"e#utive Summary(his re)or# *as +om)iled *i#h #he )ur)ose of iden#if,in& #he im)li+a#ion of *or-in& +a)i#al mana&emen# of Ford and %eneral .o#ors/ %eneral .o#ors is one of #he lar&es# +om)anies in #he au#o mo0ile indus#r,/ (his re)or# fur#her +om)ares #he ra#ios of 0o#h #he +om)an,/1n #he ra#io anal,sis se+#ion %eneral mo#ors and Ford mo#ors ra#io +om)ares %. sli&h#l, la+-s 0ehind #he s#andard 0en+hmar- *hereas ford has adequa#e liquid +ash #o mee# u) #heir shor# #erm de0#s/ (hequi+- ra#io of ford is more #han %. ma, 0e ford is holdin& more idle +ash #o mee# i#s +urren# o0li&a#ion/234 of Ford is more #han %. in #he o0ser5a#ion )eriod of !5e / 4ash +on5ersion +,+le for %. is ne&a#i5e for #he o0ser5a#ion )eriod of !5e ,ear' %. ha5e mana&ed #heir su))liers #o )a, o6 af#er sales' *hereas Ford +ash +on5ersion +,+le is )osi#i5e *hi+h means +ash &oes ou# of 0usiness/ 27$ of %. 8u+#ua#es o5er #he !5e ,ear )eriod *hereas #he ford has -e)# +onsis#en#l, )osi#i5e 27$ o5er #he !5e ,ear )eriod/ 91H for %. is more #han Ford' 9S: for ford is more #han %. *hi+h means Ford is ine;+ien# in mana&in& re+ei5a0les/ 93or-in& 4a)i#al mana&emen#//////////////////////////////////////////////////////////////////////////////////// ?Ford 4om)an, 1nforma#ion=////////////////////////////////////////////////////////////////////////////////////// 13Finan+ial Ra#io of Ford////////////////////////////////////////////////////////////////////////////////////////////// 143or-in& 4a)i#al mana&emen#////////////////////////////////////////////////////////////////////////////////// 1>Ford@s Re+ommenda#ions=//////////////////////////////////////////////////////////////////////////////////////// 33%eneral .o#ors@ Re+ommenda#ions=/////////////////////////////////////////////////////////////////////////33$ndustry Review:(he Uni#ed S#a#es has one of #he lar&es# au#omo#i5e mar-e#s in #he *orld and is home #o 13 au#omanufa+#urers/From 2008 #o 2012' manufa+#urers )rodu+ed an a5era&e of o5er 8 million )assen&er5ehi+les annuall, in #he Uni#ed S#a#es/Sin+e Honda o)ened i#s !rs# U/S/ )lan# in 1A82' almos# e5er, major Buro)ean' Ca)anese' and "oreanau#oma-er has )rodu+ed 5ehi+les a# one or more U/S/ assem0l, )lan#s/1n addi#ion #o Honda and #he0i& #hree U/S/ au#o +om)anies D %eneral .o#ors' Ford and 4hr,sler D (o,o#a' 2issan' H,undaiD"ia' $.3'.er+edesD$en' .ada' .i#su0ishi' and Su0aru allha5e U/S/ manufa+#urin& fa+ili#ies/ 1n .a, 2011'Eol-s*a&eno)enedane*U/S/ )lan#' 0rin&inhemanufa+#urer +oun# #o13/ 1naddi#ion' man,manufa+#urers also ha5e en&ine and #ransmission )lan#s and are +ondu+#in& resear+h andde5elo)men#' desi&n' and #es#in& in #he Uni#ed S#a#es/(he au#omo#i5e indus#r,' in+ludin& dealershi)sa++oun#sfora))roFima#el,3/>)er+en#of U/S/ &rossdomes#i+)rodu+#/ .o#or5ehi+lesand)ar#smanufa+#urers dire+#l, em)lo,ed 78?'000 )eo)le a# #he end of 2012/(here is an eF#ensi5e ne#*or- of au#o )ar#s su))liers ser5in& #he indus#r,/Su))liers )rodu+ed G22>/20illioninindus#r,shi)men#sin2012' a++oun#in&fornearl,4)er+en# of #o#al U/S/ manufa+#urin&/A++ordinoas#ud,0,#he.o#or HBqui)men# .anufa+#urersAsso+ia#ionin+olla0ora#ion*i#h1nforma#ion Handlin& Ser5i+es' #he #o#al em)lo,men# im)a+# of #he au#o )ar#s indus#r, *as es#ima#eda# o5er 3/?2 million jo0s dire+#l, and indire+#l, na#ion*ide in 2012 D more jo0s and e+onomi+ *ell0einhan an, o#her manufa+#urin& se+#or/9es)i#e +hallen&es *i#hin #he indus#r, in re+en# ,ears' #he U/S/ au#omo#i5e se+#or is a# #he forefron# ofinno5a#ion/2e* resear+h and de5elo)men# ini#ia#i5es are #ransformin& #he indus#r, #o 0e##er res)ond#o #he o))or#uni#ies of #he 21s# +en#ur,/1n 2012' #he Uni#ed S#a#es eF)or#ed a))roFima#el, 2/? million 5ehi+les 5alued a# G?3 0illion #o more#han 200 +oun#ries around #he *orld' *i#h addi#ional eF)or#s of au#omo#i5e )ar#s 5alued a#a))roFima#el, G7> 0illion/3i#h an o)en in5es#men# )oli+,' a lar&e +onsumer mar-e#' a hi&hl, s-illed*or-for+e' a5aila0le infras#ru+#ure' and &o5ernmen# in+en#i5es' #he Uni#ed S#a#es is #he )remier )la+efor #he fu#ure of #he au#o indus#r,/02A 1/21A7?1 1/2A?414 1/30>7A2*et Working Capital 4A140 40A28 >0>AA >>282 ?74?2+ui#k Ratio 0/A371? 0/8?7A0A 0/A>0?44 1/0238A2 1/0808?2 ,$- 32/88074 37/2>>24 40/0A832 38/2A?A4 37/A784,S. 2?/23?7 23/41?83 24/2012 24/A1A71 20/04333,/. ?0/A1738 ??/0>1?3 ?8/727>A ?>/>00A4 ?3/8AA?A.perating Cy#le >A/11744 ?0/?7208 ?4/2AA>3 ?3/21??> >8/02173Cas0 Conversion /eriod D1/7AAA3 D>/37A>> D4/4280? D2/2842A D>/877A?*et 1i2uid Balan#e 340?0 >??04 4A2?2 4AA04 4A037 Times $nterest !arned D3/43401 4/?30237 10/47407 D?2/0A2 1>/3?2281ong Term ,ebt to Capital 2/>00>?A 1/27083? 1/343>41 1/>7A18A 1/407282Total 1iabilities to Total3ssets 0/787>>? 0/737>4 0/7303>8 0/7>237A 0/7404>4 Roe 4/773A22 0/1??0A7 0/238183 0/1?>838 0/123477*et /ro4t Margin 1/002218 0/04>>1A 0/0?18 0/040301 0/0342AAR.3 0/7?A074 0/048232 0/0?4224 0/0410?> 0/032048 Current 1i2uidity $nde" >/702?2A 37/02>37 12/?01>> 14/?0?A2 ?/?48?0AWorking Capital managementCurrent Ratio200A 2010 2011 2012 20134urren# Ra#io1/12AA13231/12>02A1?1/21A7?1021/2A?414281/30>7A188200A 2010 2011 2012 201311/0>1/11/1>1/21/2>1/31/3>Current Ratio4urren# Ra#io(he +urren# ra#io *as 1/130 in 200A *hi+h de+reases #o 1/12> in #he ,ear 2010/ 7a#er in #he ,ear 2011#he ra#io in+reases #o 1/220 due #o in+rease in +urren# asse#' *hi+h e5en#uall, in+reased fur#her #o1/2A? in ,ear2012/ 1n #he ,ear 2013 #he ra#io in+reased fur#her #o 1/30? 0e+ause of fur#her in+rease in#he +urren# asse#s' *hile #he +urren# lia0ili#ies +on#inue #o in+rease/+ui#k Ratio200A 2010 2011 2012 2013Qui+- Ra#io0/A371?02A0/8?7A0A320/A>0?44421/0238A2431/0808?1A7

11/>+ui#k RatioQui+- Ra#io(he qui+- ra#io *as 0/A4 in #he ,ear 200A *hi+h de+rease #o 0/87 in #he ,ear 2010/ 7a#er in #he ,ear2011 #he ra#io in+reases #o 0/A> due #o in+rease in in5en#or,' *hi+h e5en#uall, in+reased fur#her #o1/02 in ,ear2012/ 1n #he ,ear 2013 #he ra#io in+reased fur#her #o 1/08 0e+ause of fur#her in+rease in#he +urren# asse#s and de+rease in #he in5en#or, le5el/*et Working Capital200A 2010 2011 2012 20132e# 3or-in& 4a)i#al 4A140 40A28 >0>AA >>282 ?74?2200A 2010 2011 2012 201302000040000?000080000*et Working Capital2e# 3or-in& 4a)i#al(he ne# *or-in& +a)i#al *as 4A140 in #he ,ear 200A *hi+h de+rease #o 40A28 in #he ,ear 2010/ 7a#erin #he ,ear 2011 #he ra#io in+reases #o >0>AA and +on#inues #o in+rease #o ?74?2 in 2013/*hi+h *as #o#o due #o in+rease in +urren# asse#s/Return on 3ssets interpretation200A 2010 2011 2012 2013R:A0/7?A074430/048231>?0/0?4224120/0410?4A0/0320480>>244>40/0A8323438/2A?A42337/A783A>40,$-91H(he 9a,s 1n5en#or, Held I91HJ *as 32/88 in 200A *hi+h in+reases #o 37/2> in #he ,ear 2010/ 7a#er in#he,ear2011 #hera#iofur#hurin+reases #o 40/10/ #hen in,ear 2012#he ra#io *as38/30'due #oin+reaseinSales/ (henfur#her de+reases#o37/A8in2013for fur#her in+reasein#hesalesandin5en#ories/,S.200A 2010 2011 2012 20139S:2?/23??A7A23/41?831424/201203124/A1A707?20/0433322200A 2010 2011 2012 20130>101>202>30,S.9S:9a,s Sales :us#andin&I9S:(he9a,s Sales :us#andin& I9S:J *as 2?/2da,s in200A*hi+hde+reases #o 23/4 in #he ,ear 2010/ 7a#er in #he ,ear 2011 #he ra#io in+reases #o 24/2 due #o in+reasein sales in &rea#er ma&ni#ude #hen a++oun# re+ei5a0les' *hi+h e5en#uall, in+reased fur#her #o 24/A in,ear2012/ 1n#he,ear2013#hera#iode+reases#o20/00e+ause#here*asade+reaseina++oun#re+ei5a0le and an fur#her in+rease in Sales/

8>8?>/>00A413?3/8AA?8>200A 2010 2011 2012 2013>>?0?>70,/.9??04 4A2?2 4AA04 4A037200A 2010 2011 2012 201302000040000?0000*et 1i2uid Balan#e2e# 7iquid $alan+e27$ is #he a0ili#, of nonDs)on#aneous +urren# asse#s #o +o5er nonDs)on#aneous de0#s/1# sho*s #he!nan+ial 8eFi0ili#,of #he+om)an,/ (he)osi#i5e5alueindi+a#es #he+om)an, has enou&hnonDs)on#aneous +urren# asse#s #o +o5er #heir nonDs)on#aneous de0#s/ (he 27$ in 200A *as 340?0 #hen i#??04 in 2010/ (hen i# de+reases #o 4A2?2 in 2011#hen i# in+reases #o 4AA04 in 2012/(hen i# )i+-s u) #o 4A037 in 2013/Time $nterest !arned200A 2010 2011 2012 2013(imes 1n#eres# BarnedD3/434008>4/?3023?7A10/4740741D?2/0A202>1>/3?227>4200A 2010 2011 2012 2013D100D>00>0Times $nterest !arned(imes 1n#eres# Barned1n 200A (1B *as ne&a#i5e 0e+ause of ne&a#i5e in+ome/ 1n #he ,ear 2010 and 2011 (1B *as )osi#i5e 4/?#imes and 10/> #imes res)e+#i5el,' i# *as due #o more in+ome *as earned 0, #he +om)an, #hen #o )a,o6 i#s in#eres# eF)enses/ 1n ,ear 2012 #he B$1( *as ne&a#i5e so (1B *as D?2/1/ #hen i# &e#s 0a+- #o1>/4 in 2013' ma-in an B$1( of >131/1ong Term ,ebt to Capital200A 2010 2011 2012 20137on& (erm 9e0# #o 4a)i#al2/>00>?A2A1/27083?141/343>40821/>7A18A1A1/4072821?0' i# de+reases #o 1/27 in 2010 0e+ause de0# de+reases andequi#, in+reases/ (hen in 2011 i# in+reases #o 1/34 and in 2012 i# fur#her in+reases #o 1/>8 0e+ausede0#s in+rease more #han equi#,/ Finall, in #he ,ear 2013 i# de+reases #o #o1/41 0e+ause of an in+reasein #he equi#,/ Total liabilities to Total 3sset200A 2010 2011 2012 2013(o#al 7ia0ili#ies #o (o#al Asse#s0/787>>?40/737>3A??0/7303>82A0/7>237A170/7404>3>2200A 2010 2011 2012 20130/70/720/740/7?0/780/8Total 1iabilities to Total 3ssets(o#al 7ia0ili#ies #o (o#al Asse#s1n 200A #he #o#al de0# #o #o#al asse# *as 0/78 an in #he follo*in& ,ear i# de+reases 0e+ause #o#al asse#sde+reases form 200A and 2010 and a rise in #o#al asse# in 2011' 0u# in 2011 lia0ili#ies also in+reases/ 1n#he ,ear 2012 i# in+reases #o 0/7>' *hi+h is 0ad for #he +om)an,@s re)u#a#ion/ Finall, i# de+reases #o0/74 0, 2013/477 11477 A784 A04> 10444 91H1?/?1?>>17/?>A?>1?/8174821/04?1>1A/88>A29S:2?0/7A81231/1782221/?7?822>/01A421?/A10197/17?38>7/07>83?2/370A?>?/A23A?:)erain& 4,+le277/4147248/837A238/4A4324?/0?>?23?/7A?4ash 4on5ersion

181/4184183/?A4?17A/87212e# 7iquid $alan+e 32??2 1A848 2>4?? 27177 37>81 (imes in#eres# earned1/3827?A2/1?20?12/A>A1>13/01?71A2/8A78047on& #erm de0# #o +a)i#al D10/?723D111/?A4/?44?1>4/>?A2043/180307(o#al lia0ili#ies #o #o#al asse#s1/040>231/0038A80/A1>4A70/A138830/8?7?0? Roe D0/34A1D10/21A1/34118>0/3>430?0/2708>A

1A/>8171>7/04A8?1>/4817317/77>8>R:A0/013>A70/03A?8>0/1237A?0/0327280/040821 4urren# 7iquidi#, 1ndeF>/A4?74A>/18?>A?/172A?2?/27A40>8/>4003> 24A232/7>?2142/82A403

11/>22/>32/722/322/>22/7?2/83+ui#k RatioQui+- Ra#io(he qui+- ra#io measures a +om)an,@s a0ili#, #o mee# i#s shor#D#erm o0li&a#ions *i#h i#s mos# liquidasse#s/ 1# in+lude #he in5en#or, of #he +om)an, from #he ra#io *e +an see #ha# qu+- ra#io *as dro))in&from 200A #o 2011 0u# #a-e a lif# in 2012 and in 2013/Cas0 Flow from .peration200A 2010 2011 2012 20130>000100001>000200001>47711477A784A04>10444Cas0 Flow from .peration4ash Flo* from :)era#ionFrom #he ra#io *e +an also sa* #ha# #he ne# *or-in& +a)i#al and +ash 8o* from #he o)era#ion also dro)from 200A #o 2011 0u# i# #a-e a lif# in 2012 and in 2013/,ay6s $nventory -eld%&&' %&(& %&(( %&(% %&()91H1?/?1?>>17/?>A?>1?/8174821/04?1>1A/88>A2

101>202>1?/?217/??1?/8221/0>1A/8A,$-91H9a,@sin5en#or,heldis#hera#io#ha# measures#hea5era&enum0er of da,s #he+om)an,holdsi#s in5en#or, 0efore sellin& i#/ From #he da#a *e +an see #ha# #he ra#io *as sor# of +ons#an# from 200A#o 2011 0u# in+reasin& from 2012 #o 2013 means #he, are holdin& #heir in5en#or, more #han 0efore*hi+h is no# fa5ora0le for #he +om)an,/,ay6s Sale .utstanding%&&' %&(& %&(( %&(% %&()9S:2?0/7A81231/1782221/?7?822>/01A421?/A101200A 2010 2011 2012 20130>01001>02002>03002?0/8231/18221/?8 22>/0221?/A1,S.9S:9a,@s sale ou#s#andin& i# measure of #he a5era&e num0er ofda,s #ha# a +om)an, #a-es #o +olle+#re5enue af#er a sale has 0een made/ From #he ra#io *e +an see #ha# #he 9a,s sale ou#s#andin& *asde+reasin& from 200A #o 2013 and i# is &ood for #he +om)an,/ .perating Cy#le%&&' %&(& %&(( %&(% %&():)era#in& 4,+le277/4147248/837A238/4A4324?/0?>? 23?/7A?A1 3/01?7 2/8A7801 1A 4200A 2010 2011 2012 2013012341/382/1?2/A?3/022/ATimes interest earned(imes in#eres# earned(imein#eres# earnedis#hera#io#ha# isused#omeasurea+om)an,Ksa0ili#,#omee# i#sde0#o0li&a#ions/ 1# is+al+ula#ed0,#a-in&a+om)an,Ksearnin&s0eforein#eres# and#aFesIB$1(J anddi5idin& i# 0, #he #o#al in#eres# )a,a0le on 0onds and o#her +on#ra+#ual de0#/ From #he ra#io *e +an see#ha# #ime in#eres# earned has a in+reasin& ra#e means #ha# #he, are 0e+omin& more +a)a0le #o )a,#heir de0# #han 0efore/1ong Term ,ebt to Capital%&&' %&(& %&(( %&(% %&()7on& #erm de0# #o +a)i#al D10/?723 D111/?A4/?44?1>4/>?A2043/180307200A 2010 2011 2012 2013D1>0D100D>00>0D10/?7D111/?A4/?4 4/>7 3/181ong term debt to #apital 7on& #erm de0# #o +a)i#al

0/3>430?0/2708>A200A 2010 2011 2012 2013D1>D10D>0>D0/3>D10/221/340/3> 0/27R.!RoeRe#urn on equi#, is amoun# of ne# in+ome re#urned as a )er+en#a&e of shareholders equi#,/ Re#urn onequi#, measures a +or)ora#ionKs )ro!#a0ili#, 0, re5ealin& ho* mu+h )ro!# a +om)an, &enera#es *i#h#he mone, shareholders ha5e in5es#ed/ (he +om)an, has a 8u+#ua#in& R:B ra#e o5er #he ,ears *hi+halso in+lude ne&a#i5e 5alues/Return on 3sset%&&' %&(& %&(( %&(% %&()R:A0/013>A70/03A?8>0/1237A?0/0327280/040821

0/10/1>0/010/040/120/030/04R.3R:ARe#urn on asse# is an indi+a#or of ho* )ro!#a0le a +om)an, is rela#i5e #o i#s #o#al asse#s/ R:A &i5es anideaas#oho*e;+ien# mana&emen# isa# usin&i#sasse#s#o&enera#eearnin&s/ (heroahasa8u+#ua#in& ra#e o5er ,ear from 200A #o 2013//ro4t Margin%&&' %&(& %&(( %&(% %&()2e# 2837>1A/>8171>7/04A8?1>/4817317/77>8>200A 2010 2011 2012 2013010203040>0?08/>31A/>8>7/0>1>/4817/78*et /ro4t Margin2e# A?/172A?2?/27A40>8/>4003>200A 2010 2011 2012 201301234>?78A>/A>>/1A?/17?/288/>4Current 1i2uidity $nde"4urren# 7iquidi#, 1ndeF(he liquidity index +al+ula#es #he da,s required #o +on5er# a +om)an,Ks #rade re+ei5a0les andin5en#or,in#o+ash/ (heindeFisused#oes#ima#e#hea0ili#,of a0usiness#o&enera#e#he+ashneeded #o mee# +urren# lia0ili#ies/ (he liquidi#, ra#io of #he +om)an, has a in+reasin& ra#e *hi+h no#fa5ora0le for #he +om)an, 0e+ause #he, #a-in& more #ime #o +on5er# re+ei5a0les and in5en#or, #o+ash/ Comparative3nalysis of GeneralMotors and Ford 02A1>81/21A7?101A1/2A?4142841/30>7A1877F:R9 2/822?4>?A32/42801?432 2/?421081A2/A0?8183212/A81001082Current Ratio200A 2010 2011 2012 201300/>11/>22/>33/>%.F:R9+ui#k RatioQui+- Ra#io 200A 2010 2011 2012 2013%. 0/A371?02A40/8?7A0A3240/A>0?444221/0238A242A1/0808?1A72F:R9 2/71847703>2/31802888?2/>24A22>>12/7>?2138172/82A403088200A 2010 2011 2012 201300/>11/>22/>3%.F:R9?1 and #he a+id #es# ra#io *as 2/?2A4/ (hese a5era&esare 0e##er in +om)arison #o %eneral .o#ors +urren# ra#io of 1/2138 and a+id #es# ra#io of 0/A721 *hi+h#ells #ha# ford has more +urren# asse#s #o +o5er i#s shor# #erm lia0ili#ies and ma-es Ford a safer andmore !nan+iall, s#ron& +om)an,/$, +om)arin& #his' Ford asse#s are more #han #*i+e as +om)ared #oi#s lia0ili#ies and i# has a si&ni!+an# amoun# of *or-in& +a)i#al #ha# seems #o 0e a sa#isf,in& )osi#ion in#erms of liquidi#,/ :n #he o#her hand %eneral .o#ors seems#o 0e a modera#e liquid +om)an, as i#sasse#s are more #han require #o #he lia0ili#ies and #here is some *or-in& +a)i#al for #he +om)an,/ Fordha*#oomu+h+urren# asse#s #ha# islef# unDin5es#ed/ (heeF#raasse#s are*as#ed0,#he+om)anies/ Forins#an+e' Fordhasa+urren# ra#ioof 2/A38in2013' *hi+his#oohi&hra#her#han%eneral .o#ors ha5e 1/30> res)e+#i5el,/ Qui+- ra#io does no# in+lude #he +urren# asse#s li-e in5en#oriesas #he, are no# 0elie5ed #o 0e easil, liquid a0le/ Ford has #he maFimum ra#io of 2/82A in 2013 *hile+om)arin& #o %eneral mo#ors@ has 1/080 in #ha# ,ear/*et working #apital:2e# 3or-in& 4a)i#al 200A 2010 2011 2012 2013%. 4A140 40A28 >0>AA >>282 ?74?2F:R9 A>3>A 7?823 82?A0 A3211 100724200A 2010 2011 2012 201302000040000?000080000100000120000%.F:R94om)are #he amoun# of #he Ford and %eneral .o#ors ne# *or-in& +a)i#al Ford has more ne# *or-in&+a)i#al +om)are #o %. meanin& #ha# Ford has more 8eFi0ili#, #o s)end on &ro*in& i#s 0usiness/ 1n #hiseFam)le' 1n 2013 Ford has G100724 ne# *or-in& +a)i#al' on #he o#her hand %. has G?74?2 *or-in&+a)i#al *hi+hismu+hless+om)are#oFord/ Fordhasmorene# *or-in&+a)i#al anda)o#en#ial+om)e#i#i5e ad5an#a&e *i#h #he a0ili#, #o s)end more mone,/,$-:91H 200A 2010 2011 2012 2013%. 32/8807433> 37/2>>2444? 40/0A832344 38/2A?A423 37/A783A>447?3 17/?>A?>3?3 1?/81747A0A 21/04?14734 1A/88>A18??200A 2010 2011 2012 2013010203040>0%.F:R9Ford@s in5en#or, holdin& )eriod *as mu+h shor#er #han %./ *i#h Ford ha5in& da,s #o holdin& 1n5en#or, ra#io of 18/3Ada,s on a5era&e and %. ha5in& an a5era&e ra#io of 37/2Ada,s/ Ford o)era#esinasli&h#l,leaner)rodu+#ionmanner#hanH 22>/01A42A? 21?/A1012?1200A 2010 2011 2012 20130>01001>02002>0300%.F:R94/A4 da,s *hi+h is less #hen %enaral .o#ors/ As %. 984 ?4/2AA>2?>? ?3/21??4AA >8/021727?4F:R9 277/414?8?7 248/8378?0? 238/4A427>? 24?/0?>>77 23?/7A?044801001>02002>0300%.F:R9:)era#in&+,+leisameasureof #heo)era#in&e;+ien+,and*or-in&+a)i#al mana&emen# of a+om)an,/ :n an a5era&e %eneral .o#ors :)era#in& +,+le is ?1/0?da,s/ +om)arin& on #he o#her handFord has a lar&e o)era#in& +,+le of 207/>1da,s *hi+h is lar&e #hen %./ A shor# +,+le allo*s a 0usiness#o qui+-l, a+quire +ash #ha# +an 0e used for addi#ional )ur+hases or de0# re)a,men#/ (he lo*er #he+ash +on5ersion +,+le' #he more heal#h, a +om)an, &enerall, is/Cas0 Conversion period:4ash 4on5ersion /37A>>221 D4/4280>A22 D2/2842A137 D>/877A>73?F:R9 23?/2240834 1A1/??14812 181/41844>2 183/?A4?12? 17A/87208?4200A 2010 2011 2012 2013D>00>01001>02002>0300%.F:R9:n an a5era&e Ford has an +ash +on5ersion )eriod of 1A4/>7 da,s *hi+h is so hi&her' on #he o#herhand%eneral mo#orhasan a5era&e+ash+on5ersion )eriodofD 3/A4da,s/(he &rea#er#he+ash+on5ersion )eriod' #he less liquid i# is' li-e Ford/ 1n #his +om)arison' %. has 0e##er liquidi#, #hen Ford/*et li2uid balan#e:$, +om)arin& 0o#h +om)an, %eneral mo#or has 0een more ne# liquid 0alan+e or more sol5en# #henFord/ 4learl,' ha5in& #he +ash in hand #o )a, o6 de0#s is an ad5an#a&e #o 0orro*ers/(ime 1n#eres# Barned=(imes 1n#eres#Barned 200A 2010 2011 2012 2013%. D3/4340084A4 4/?3023?7A410/47407407 D?2/0A2024>4 1>/3?227>4>A1>1433 3/01?718A13 2/8A7804283 200A 2010 2011 2012 2013010000200003000040000>0000?0000%.F:R91n #ha# ra#io Ford has )erformed more or less same in all o5er #he #ime )eriod #han %eneral .o#ors/ 1nall #he #ime )eriod #he #ime in#eres# earned ra#io s#a,s 0e#*een 1/38 #o 3/02 +om)are #o #hem %eneral.o#or@sra#io*as0e#*eenD?2/0A#o1>/3?/ Soin#he&i5en#ime)eriodFordhad)erformedmore+onsis#en#l, #han %eneral mo#ors/1ong Term ,ebt to Capital:7on& (erm 9e0# #o4a)i#al 200A 2010 2011 2012 2013%.2/>00>?A2A>1/27083?1371/343>408171/>7A18A18A1/4072821?1F:R9D10/?7232074D111/?A003124/?44?1>4874/>?A2038283/18030738A

200A 2010 2011 2012 2013D70D?0D>0D40D30D20D1001020%.F:R9>?403 0/737>3A?>A 0/7303>82A1 0/7>237A1?8 0/7404>3>18F:R91/040>22808 1/0038A8304 0/A1>4A???A 0/A13883404 0/8?7?0?1>200A 2010 2011 2012 201300/20/40/?0/811/2%.F:R9Here 0o#h #he or&ania#ion )reformed more or less +onsis#en#/ Here &eneral .o#ors )erformed 0e##er#han Ford/ (heir #o#al asse#s *ere al*a,s in+reasin& more #han #he asse#s of Ford/R.!Roe 200A 2010 2011 2012 2013%. 4/773A217>? 0/1??0A7042 0/23818317 0/1?>837838 0/1234770A3F:R9 D0/34A13A03AD10/21A?2?171/34118>0>7 0/3>430?08> 0/2708>8>7118A10/0?17AA?220/040300>4? 0/0342AA0?F:R9 8/>283747411A/>81711>A>7/04A8?0421>/481734??17/77>8>303200A 2010 2011 2012 2013010203040>0?0%.F:R91n #his ra#io Ford had )erformed *a, 0e##er #han %eneral .o#ors #hou&h Ford@s 5alues 8u+#ua#e lo#s0u# #he, )erformed reall, *ell/ :n #he o#her hand %eneral .o#ors had under)erformed +om)are #oFord/ %eneral .o#ors 2e# F:R9 0/013>A7101 0/03A?84>08 0/1237A>7>8 0/032727?A3 0/040820?3>200A 2010 2011 2012 201300/10/20/30/40/>0/?0/70/80/A%.F:R91n #his ra#io 0o#h of #he or&ania#ion had )erformed more or less same 0u# if *e +onsider #he *hole#ime)eriod#henFord)erformed0e##er#han%eneral .o#ors/ Here%eneral )erforman+ede+rease+onsis#en#l,/ :n #he o#her hand Ford *as in an in+reasin& #rend for las# #*o ,ears/Current 1i2uidity $nde"4urren# 7iquidi#, 1ndeF 200A 2010 2011 2012 2013%. >/702?28>A3 37/02>3712A 12/?01>>172 14/?0?A228 ?/?48?08>?1F:R9 >/A4?7487A7 >/18?>8A773 ?/172A?2227?/27A40>044 8/>400347A200A 2010 2011 2012 20130>101>202>303>40%.F:R9Here %eneral .o#ors )erforman+e is 8u+#ua#in& *here Ford is in+reasin& +onsis#en#l,/ So here +ondi#ionof %eneral .o#ors is 0e##er 0e+ause #he, in+rease in5es#men# *hen #here *as eF+ess +ash in hand/ :n#he o#her hand Ford in+reased #heir +ash in hand *hi+h +an lead #hem #o #hrea#/