Ford Motor Company (F)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 184,992,000 | 176,191,000 | 158,057,000 | 136,341,000 | 127,144,000 |
| Property, plant and equipment | US$ in thousands | 41,928,000 | 40,821,000 | 37,265,000 | 37,139,000 | 37,083,000 |
| Fixed asset turnover | 4.41 | 4.32 | 4.24 | 3.67 | 3.43 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $184,992,000K ÷ $41,928,000K
= 4.41
The fixed asset turnover ratio for Ford Motor Company has shown a consistent upward trend over the five-year period from December 31, 2020, to December 31, 2024. The ratio increased from 3.43 in 2020 to 4.41 in 2024, indicating that the company generated more revenue per dollar of fixed assets invested.
This improvement in fixed asset turnover suggests that Ford has been more efficient in utilizing its fixed assets to generate sales revenue over the years. A higher fixed asset turnover ratio is generally considered favorable, as it signifies that the company is effectively managing and utilizing its fixed assets to drive revenue growth.
The steady increase in fixed asset turnover can be a positive sign of operational efficiency and effective asset utilization at Ford Motor Company. It indicates that the company is efficiently managing its capital investments in fixed assets to generate sales, which can lead to improved profitability and overall financial performance in the long term.
Peer comparison
Dec 31, 2024