Ford Motor Book Value Per Share vs. Cash and Equivalents

F -- USA Stock  

USD 10.89  0.04  0.37%

The Drivers Module shows relationships between Ford Motor's most relevant fundamental drivers and provides multiple suggestions of what could possibly affect the performance of Ford Motor Company over time as well as its relative position and ranking within its peers. Additionally see Investing Opportunities.

Ford Motor Cash and Equivalents vs. Book Value Per Share Fundamental Analysis

Ford Motor Company is one of the top stocks in book value per share category among related companies. It is one of the top stocks in cash and equivalents category among related companies creating about  3,602,145,626  of Cash and Equivalents per Book Value Per Share.
Book Value per Share (B/S) is can be calculated by subtracting liabilities from assets, and then dividing it by the total number of currently outstanding shares. It indicates the level of safety associated with each common share after removing effects of liabilities. In other words a shareholder can use this ratio to see how much he or she can sell the stake in the company in the event of liquidation.
Ford Motor 
Book Value per Share 
 = 
Common Equity 
Average Shares 
=
7.66 times
The naive approach to look at Book Value per Share is to compare it to current stock price. If Book Value per Share is higher than the currently traded stock price, the company can be considered undervalued. However, investors must be aware that conventional calculation of Book Value does not include intangible assets such as good will, intellectual property, trademarks or brands and may not be an appropriate measure for many firms.
Cash or Cash Equivalents are the most liquid of all assets found on company's balance sheet. It is used in calculating many of the firm's liquidity ratios and is a good indicator of overall financial health of a company. Companies with a lot of cash are usually attractive takeover targets. Cash Equivalents are balance sheet items that are typically reported using currency printed on notes.
Ford Motor 
Cash 
 = 
Bank Deposits 
+  
Liquidities 
=
27.6 B
Cash equivalents represent current assets that are easily convertible to cash such as short term bonds, savings account, money market funds, or certificate of deposits (CDs). One of the important consideration companies make when classifying assets as cash equivalent is that investments they report on their balance sheets under current assets should have almost no risk of change in value over the next few months (usually 3 months).

Ford Motor Cash and Equivalents Comparison

  Cash and Equivalents 
      Ford Motor Comparables 
Ford Motor is currently under evaluation in cash and equivalents category among related companies.
  Book Value Per Share 
      Ford Motor Comparables 
Ford Motor is currently under evaluation in book value per share category among related companies.