Ford Motor Company (NYSE:F)- Stocks Luring Investors with Juicy Profitability Figures: The Kraft Heinz (NASDAQ:KHC)

Ford Motor Company (NYSE:F) also making a luring appeal, share price swings at $12.32 with percentage change of -0.32% in most recent trading session. Ford (F), the 113-year-old automaker, may be headquartered in the suburbs of Detroit, but CEO Mark Fields has his eyes set on Silicon Valley. The company built a research and innovation center in Palo Alto in 2015 and went on to acquire two tech startups the following year. It’s now working with some 40 startups on joint research projects at the center, in addition to companies it works with through tech incubators and accelerators like Techstars.

On the other hand, Ford Motor Company’s U.S. retail sales of 120,400 vehicles are up 6 percent in January, while total sales declined 1 percent. Fleet sales of 52,212 vehicles, including daily rental, commercial and government sections, declined 13 percent. The fleet decline reflects a strong year-ago comparison, with fleet consumer orders front-loaded at the beginning of 2016.

“The new year brought strong consumer demand for F-Series, Lincoln and record SUV sales, especially high-end models,” said Mark LaNeve, Ford vice president, U.S. Marketing, Sales and Service. “This drove near-record company average transaction prices for Ford, up $2,500 versus a year ago and far outpacing the overall January industry increase of $550.”

Profitability Valuation

The profit margins can answer significantly to find consistent trends in a firm’s earnings, the Co has positive 3% profit margins that indicates every dollar of sales a firm actually keeps in earnings, and the larger number indicates improving and vise worse. Gross profit margin, operating profit margins are its sub parts that firm has 10.70% and 2.70% respectively. Moving toward returns ratio, F has returns on investment of 1.10% which indicates firm’s investment efficiency or to compare the efficiency of a number of different investments.

While returns on assets calculated as 1.90% hat gives an idea about how efficient management is at using its assets to generate earnings. It has returns on equity of 15.10%, which is measuring a corporation’s profitability by revealing how much profit generates by F with the shareholders’ money. The firm attains analyst recommendation of 2.80 on scale of 1-5 with week’s performance of -3.67%.

Moving toward ratio analysis, it has current ratio of 1.20 and quick ratio was calculated as 1.10. The debt to equity ratio appeared as 4.90 for seeing its liquidity position. The firm attains analyst recommendation of 2.80 out of 1-5 scale with week’s performance of -3.67%.

The Kraft Heinz Company (NASDAQ:KHC) need to consider for profitability analysis, in latest session share price swings at $88.41 with percentage change of -0.99%.

The Co has positive 10.40% profit margins to find consistent trends in a firm’s earnings. Gross profit margins and operating profit margins are its sub parts that firm have 36.90% and 21.90% respectively. KHC has returns on investment of 2.70%. The returns on assets were 2.30% that gives an idea about how efficient management is at using its assets to generate earnings. It has returns on equity of 4.80%, which is measuring profitability by disclosing how much profit generates by KHC with the shareholders’ money.

The firm attains analyst recommendation of 2.70 on scale of 1-5 with week’s performance of -0.48%. The firm current ratio calculated as 0.90, this value is acceptable if it lies in 1.3% to 3%. But its varies industry to industry. To strengthen these views, active industry firm has Quick Ratio of 0.60, which indicates firm has sufficient short-term assets to cover its immediate liabilities. In addition, the firm has debt to equity ratio of 0.57, sometimes its remain same with long term debt to equity ratio.

 

About Richard Avery

He is a capital projects manager and process design engineer at a large-cap company. He has renowned MBA degree. Before joining SWR, he was a freelance writer for renounce tech websites. He is currently studying for CFP exam. Interests: Tech stocks, Economic Markets, Blue-chips.

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