Collect and analyse divisional data (Learning Objective 3) The Ford Motor Company operates two…
Collect and analyse divisional data (Learning Objective 3) The Ford Motor Company operates two segments (Ford refers to its segments as “sectors”) . Using the company's website, locate sector information for 2015 in the company's 2015 annual report. (Hint: Look under Investor Relations.) Most of the information will be in the Financial Statements and related Notes to the Consolidated Financial Statements (found in the Form 10-K}.
1. What are Ford's reported sectors in its Balance Sheet and Income Statement? Gather data about each segment's net sales, operating income, and identifiable assets.
2. Calculate the ROI for each segment.
3. Which segment has the highest ROI? Explain why.
4. If you were on the top management team and could allocate extra funds to only one division, which division would you choose? Why?