Analyze the selected ratios downloaded for each company. What are they telling you?

Operating ratio of the tesla company is 0.3, General motor 4.3 and ford is 0.4 that shows that general motor operating earnings is better among 3 and it could be positive aspect for the GM. Return on asset is also determining the profitability of the companies such as tesla, GM and ford is having return on assets such as -2.7, 3.0 and 0 respectively. These profitability ratios show that GM have better profitability in the market.

Proportions like the P/E are by a long shot the most widely recognized sort of valuation device utilized by specialists. For speculators, the proportions connect essential corporate execution (e.g., deals, benefit) with share costs, to rapidly analyze conceivably underestimated or exaggerated organizations.

The subject merits a precise treatment it is an immediate and express one type to a totally different type examination. P/E ration of tesla, GM and ford is -85.9, 8.0 and 794.5 respectively that shows that ford is earning better according to the prices. The two parts of the proportion are gotten from various sources, in view of various reasonable systems. The numerator originates from the market, mirroring its feelings, its curious "climate," and its implied intelligence of the group; the denominator is a target proportion of remaining incomes, prepped and balanced by normalized rules of bookkeeping, and has nothing to do with the market. This cross breed signal is both vague and flimsy. That is, the hugeness of the P/E – its quickly "right" understanding changes now and again and from organization to organization.

Dividend yield is used to learn about the dividend ratio of the companies are such as GM is stand at 4.2, ford at 6.5 that shows ford is working efficiently in distribution of the dividend to the shareholders. Assets turnover ratio according to Duo point method is showing that the companies are working by creating balance between asset and liabilities of the company. According to Dou point analysis tesla has 0.8, GM 0.6 as well as ford has also 0.6 asset turnover ratio. In asset turnover ratio, Tesla is going well. Return on equity also calculated according to the Dou point analysis ford has 0.1; GM earns 16.7 as well as Tesla has not calculated according to this method. Return of equity of GM is better as compare to both companies.

Reinvestment rate of Tesla, GM and ford is based on the dividend yield ratio that how it deal with the shareholders in the investment. Inventory turnover ratio Inventory turnover ratio is based on the different aspects of the profit that deals to the return. The inventory turnover ratio of Tesla Company is very slow as on 6.2 while GM motor stand on 12.2 as well as Ford is standing on the. 12.4 It shows that invented turnover ratio for Ford Company is better than the other both companies. As far as concerned with ratio of the company, the tesla is on 0.8 GM is based on 0.8 and Ford is working with ratio at 1.1 As concerned with the LT debt ratio, the board is working at 308.6, GM is working on 4.0 and Tesla is working on 5.7 coverage ratio of Tesla is 0.1 general GM is based on 6.2 and four is based on. 0.5.

1.      Based on the ratios, financial statements and EPS, which company do YOU think would be a better investment over the next five years and WHY?

According to the analysis of financial ratios of three companies such as Tesla, GM, and Ford, we could say that the financial ratios of GM are most likely to increase the return on the investment of the shareholders the company is working in such conditions with the high productivity and profitability ratio of the better improvement. As far as concerned with the price earnings ratio, the Companies are working with positive price earnings ratio, are the suitable for Reinvestment in the project of the company? In price earning concern, Tesla is not working well such as its price earnings ratio is continuously in negative and currently it is based on minus 85.9.

The price earnings ratio of test the GM is. 8.0. And from last two years it is in positive. But in 30 years as 2018 it was in negative and past performance is also in positive form. In previous decades, some three to four years Ford face negative performance in the price earning but continuously from you 8 to 10 year it is earning positive price earning as and then in seventeen 2018 and 2019 earn remarkable Price earnings ratio. The current price earnings ratio of Ford is highly approachable as it is 794.9. According to price earnings ratio, Ford is better to invest in the project and shareholder must try this for next 5 year to get better investment. Return from the projector. Financial statements of the company’s shows that GM is better project to invest in next five years to gain the reliability.