The “Big Three” Of The Auto Industry: Analyzing And Predicting Performance

This paper analyzes the financial performance of three leading automobile manufacturers (referred to as the “Big Three”). The analysis incorporates the use of (1) traditional and newer financial ratio methods and (2)prominent finance websites. The end result of the analysis is to assess the future profitability of the “Big Three.”From a pedagogical standpoint, the paper offers instructors a skill that will enable them to impart knowledge of an analytical technique for evaluating firm performance. This technique can be used by business students and practitioners alike. As a byproduct, this paper includes a class exercise that goes beyond just the “X’s and O’s” of financial ratio analysis by requiring students to integrate their financial ratio findings with online sources offering economic and industrial analysis and analysts’ predictions