Running Head: John Deere Financial Analysis
John Deere Financial Analysis
Ameya Pilgaonkar
Davenport University
Abstract
Financial Analysis is the process of evaluating businesses by researching projects, budgets and other financial related information to determine their suitability for investment. Typically, financial analysis is used to analyze whether an entity is stable, solvent, liquid, or profitable enough to be invested in. This paper analyzed the financial statements for Deere & Company. The analysis of Deere & Company was done by analyzing eight ratios in different categories that give you an idea where the company stands financially. The ratios analyzed for Deere & Company are the following: Current ratio, quick ratio, return of equity, debt to equity, receivables turnover, fixed asset turnover, total asset turnover, inventory turnover, and the Gordon Model. The analysis in this paper can be used by anyone from the larger portfolio manager to the small home investor. Doing analysis such as this allows you to minimize your risk and allows you to make a smarter financial decision.
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The John Deere Pavilion in Moline, Illinois.John Deere Financial Analysis
The core values of integrity, quality, commitment, and innovation of Deere & Company were established and implemented in 1837 by John Deere, a blacksmith and inventor that manufactured a single polished-steel plow in Grand Detour, Illinois. Deere & Company evolved in 1838 into John Deer In just four short years John Deere quickly grew from manufacturing only 10 plows a year in 1839, to manufacturing 100 plows in 1842 ("Timeline," n.d.).
The water power and transportation advantages that Moline, Illinois possessed inspired John Deere to make the decision to move the growing manufacturing business there in 1848. By 1849 2,136 plows were manufactured and Mr. Deere had acquired new co-partners("Timeline," n.d.). In 1850, the company started operating under the name Deere, Tate & Gould. The name didn't...