How to Compare GM Vs. Ford Sales

General Motors and Ford Motors are both automobile companies with the same goal--increase profits by selling more vehicles. Companies can increase profits in two ways: 1) increase revenues and/or 2) decrease costs. The best way to compare company profitability is by looking at the income statement for both GM and Ford. Investors can also read through the notes to the income statement for additional clues about the direction of sales.

Instructions

1. Download an annual report from each company. Go to the Investor Relations section of both GM and Ford for the latest annual report.

2. Pull up the income statement for both companies. This is where you will find the sales numbers for both companies. The income statement will show total sales (at the top), gross margin, operating margin and net income margin. The income statement will also show cost of goods sold (COGS) and operating expenses.

3. Compare sales growth rates. The growth rate is calculated by subtracting the beginning value from the ending value and then dividing by the beginning value.

4. Read through and compare the section in the notes to the financial statements about Revenues or Sales.

References

• GM: Investor Relations
• Ford: Investor Relations