Below are the calendar year 2018 Annual Reports for Mercedes Benz (MB), prepared under IFRS, and Ford Motor Company (General Motors), prepared under the US GAAP.
- Daimler: Annual Report 2018 (Links to an external site.)
- Ford Motor Company: 2018 Annual Report (Links to an external site.)
Pick, prepare, and compare two common types of the following ratios for MB and Ford: in other words, pick 2 Liquidity ratios, 2 Solvency ratios, 2 Profitability ratios, and 2 Management Efficiency Ratios/Measures. Therefore, you will have a total of eight ratios for each Company using the financial statements included in the Annual Reports for each of the last two years.
The following hyperlink should help you with both finding and calculating the above ratios:
https://www.accountingverse.com/managerial-accounting/fs-analysis/financial-ratios.html (Links to an external site.)
Include the basis of your calculations in an Excel file with separate labeled tabs (one labeled MB and the other labeled Ford). Then attach the final ratios you calculated for each company, side-by-side, into your initial posting response here in Canvas so we can see the results.
For each ratio you have chosen, compare and contrast the results between these two firms. Most importantly, comment on how the differences in the basis of preparation of the respective financial statements, including the related accounting rules followed by each company, might impact the comparison of those ratios between these two firms. Hint: you will need to review the Footnotes to the Financial Statements and the Summary of Significant Accounting Policies for both MB and Ford to identify potential differences in the accounting standards used by both companies.
By Thursday of this week, submit substantive initial posts of at least 300 words that answer or address the issues in the discussion board. By Sunday of this week, respond to two or more classmates, or your instructor, in any of the following ways:
- Build on something your classmates said in the post
- Explain why and how you see things differently
- Ask a probing or clarifying question
- Share an insight from having read your classmate’s posting
- Offer and support an opinion
- Expand on classmates’ posting
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