Business Analysis of Ford Motor

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of Ford Motor

FORD MOTOR

Business Overview

Ford Motor Company, together with its subsidiaries, designs, manufactures, markets, and services automobiles in North America, South America, Europe, the Middle East and Africa, and the Asia Pacific. The company's Automotive segment develops, manufactures, distributes, and services cars, trucks, SUVs, and electrified vehicles under the Ford name; and luxury vehicles under the Lincoln name, as well as service parts and accessories. This segment markets its products through distributors and dealers, as well as through dealerships to fleet customers, including commercial fleet customers, daily rental car companies, and governments. Its Financial Services segment offers various automotive financing products to and through automotive dealers. Its financing products comprise retail installment sale contracts for new and used vehicles; and direct financing leases for new vehicles to retail and commercial customers, such as leasing companies, government entities, daily rental car companies, and fleet customers. This segment also offers wholesale loans to dealers to finance the purchase of vehicle inventory; and loans to dealers to finance working capital and improvement of dealership facilities, purchase dealership real estate, and other dealer vehicle programs. The company was founded in 1903 and is based in Dearborn, Michigan.

Ford Motor

Ford Motor


R&P Rank: 10
Sector: Automobiles and Parts
Industry:Automobiles
H.Q Location:Michigan
Website: www.ford.com
Company Address:
ONE AMERICAN ROAD, DEARBORN MI 48126
Ph:313-322-3000

Business Analysis of Ford Motor

The Automobiles and Parts Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Ford Motor compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Ford Motor to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of Ford Motor with an interactive chart.

  1. Revenue Growth: Ford Motor reported a revenue growth of 1.5% year-on-year during 2016. Automobiles Industry grew at 4.4% in the same period
  2. COGS share of Revenues: As a percentage of revenue, Ford Motor spent 89.3% of its total revenues on COGS. Automobiles industry average (COGS share of revenue) in the same period was 86.6%
  3. R&D share of Revenues: Ford Motor R&D share of Revenues details are not available because either company does not share the data or we do not have it
  4. SG&A share of Revenues: As a percentage of revenue, Ford Motor spent 8.0% of its total revenues on Sales, Marketing, and General Administration (SG&A). Automobiles industry average SG&A spending in the same period was 8.0%
  5. Inventory share of Revenues: As a percentage of revenue, Ford Motor spent 5.9% of its total revenues on Inventories. Automobiles industry average Inventory spending in the same period was 8.0%
  6. Accounts Payable share of Revenues: As a percentage of revenue, Ford Motor invested 14.0% of its total revenues on Accounts Payable (A/P) Automobiles industry average Accounts Payable investment in the same period was 14.6%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, Ford Motor invested 70.7% of its total revenues on Accounts Receivable (A/R). Automobiles industry average Accounts Receivable investment in the same period was 47.5%
  8. PP&E share of Revenues: As a percentage of revenue, Ford Motor invested 21.1% of its total revenues on Property, Plants, and Equipments (PP&E). Automobiles industry average PPE investment in the same period was 34.0%
  9. Intangibles share of Revenues: Ford Motor Intangibles share of Revenues details are not available because either company does not share the data or we do not have it
  10. Net Margins: Ford Motor Net Margins in the year 2016 were 3.0%. Automobiles industry average Net Margins in the same period were 4.1%

Sector and Industry Association of Ford Motor

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries. For high-level analysis purposes, related/similar sectors are grouped into sector groups.

Ford Motor is associated with Industrials Sector Group, Automobiles and Parts Sector, and Automobiles Industry.

Automobiles and Parts sector is comprised of the following industries: Automobiles; Auto Parts. The definitions for each of the industries is as follows:

  • Automobiles industry includes manufacturers of passenger vehicle that includes Cars, SUVs etc. and recreational vehicles including motorcycles like Harley Davidson. Companies making boats and other recreational vehicles are also part of Automobiles industry.
  • Auto Parts industry includes manufacturers and distributors of automobile parts including engines, batteries and also tires.

Industry Ranking of Ford Motor

With $151.8 billion revenues, Ford Motor ranked number 2 of all the companies in the US Automobiles industry. There were a total of 18 public companies in the US Automobiles industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Automobiles industry by revenues during 2016 were:

  1. General Motors ($166.4 billion)
  2. Ford Motor ($151.8 billion)
  3. PACCAR ($17 billion)
  4. Navistar International ($8.1 billion)
  5. Tesla Motors ($7 billion)
  6. Oshkosh ($6.3 billion)
  7. Harley-Davidson ($6 billion)
  8. Thor Industries ($4.6 billion)
  9. Polaris Industries ($4.5 billion)
  10. Brunswick ($4.5 billion)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of Ford Motorand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of ford-motor

General Motors (GM) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

General Motors Co with $166 billion revenues in the year 2016 was the number 1 Automobiles company. Read this report to know the top competitors of General Motors and identify growth and cost optimization opportunities of General Motors

PACCAR (PCAR) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

PACCAR Inc with $17 billion revenues in the year 2016 was the number 3 Automobiles company. Read this report to know the top competitors of PACCAR and identify growth and cost optimization opportunities of PACCAR

Navistar International (NAV) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Navistar International Corp with $8 billion revenues in the year 2016 was the number 4 Automobiles company. Read this report to know the top competitors of Navistar International and identify growth and cost optimization opportunities of Navistar International

Tesla Motors (TSLA) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Tesla Motors Inc with $7 billion revenues in the year 2016 was the number 5 Automobiles company. Read this report to know the top competitors of Tesla Motors and identify growth and cost optimization opportunities of Tesla Motors

Oshkosh (OSK) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Oshkosh Corp with $6 billion revenues in the year 2016 was the number 6 Automobiles company. Read this report to know the top competitors of Oshkosh and identify growth and cost optimization opportunities of Oshkosh

Harley-Davidson (HOG) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Harley-Davidson Inc with $6 billion revenues in the year 2016 was the number 7 Automobiles company. Read this report to know the top competitors of Harley-Davidson and identify growth and cost optimization opportunities of Harley-Davidson

Revenues Analysis

Ford Motor (F) Revenues And Revenue Growth From 2012 To 2016

This report provides the last five years revenues and revenue growth of Ford Motor Co (F) from 2012 to 2016. Ford Motor generated a total of $151.8 billion revenues during 2016. Ford Motor reported a revenue growth of 1.5% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Ford Motor (F) Revenues And Revenue Growth From 2002 To 2016

This report provides the last fifteen years revenues and revenue growth of Ford Motor Co (F) from 2002 to 2016. Ford Motor generated a total of $151.8 billion revenues during 2016. Ford Motor reported a revenue growth of 1.5% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Ford Motor (F) Revenue Growth Comparison With Industry Growth From 2012...

This report provides a comparison of Ford Motor Co (F) revenue growth with Automobiles industry growth during the last five years from 2012 to 2016. Ford Motor reported a revenue growth of 1.5% year-over-year during 2016. The Automobiles industry growth was 4.4% year-over-year during 2016. Ford Motor growth was slower than the industry during 2016.

Profit Analysis

Ford Motor (F) Net Profit And Net Margin From 2012 To...

This report provides the last five years net profit and net margin of Ford Motor Co (F) from 2012 to 2016. Ford Motor reported a total net income of $4.6 billion during 2016. Ford Motor generated a total of $151.8 billion revenues during 2016. Ford Motor net profit margin was 3% during 2016. The net profit and the net profit margin correspond to the fiscal year ending in December.

Ford Motor (F) Net Profit And Net Margin From 2002 To...

This report provides the last fifteen years net profit and net margin of Ford Motor Co (F) from 2002 to 2016. Ford Motor reported a total net income of $4.6 billion during 2016. Ford Motor generated a total of $151.8 billion revenues during 2016. Ford Motor net profit margin was 3% during 2016. The net profit and the net profit margin correspond to the fiscal year ending in December.