Ford Motor Company (F)

Fixed asset turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Revenue (ttm)	US$ in thousands	185,059,000	183,244,000	180,529,000	177,660,000	176,452,000	173,326,000	169,237,000	164,758,000	158,057,000	151,736,000	148,027,000	134,589,000	136,341,000	134,615,000	136,433,000	129,052,000	127,144,000	130,907,000	130,396,000	149,878,000
Property, plant and equipment	US$ in thousands	41,928,000	41,169,000	40,709,000	40,515,000	40,821,000	39,370,000	38,503,000	37,970,000	37,265,000	35,529,000	36,162,000	36,625,000	37,139,000	36,597,000	36,723,000	36,361,000	37,083,000	36,118,000	35,276,000	35,294,000
Fixed asset turnover		4.41	4.45	4.43	4.39	4.32	4.40	4.40	4.34	4.24	4.27	4.09	3.67	3.67	3.68	3.72	3.55	3.43	3.62	3.70	4.25

December 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $185,059,000K ÷ $41,928,000K
= 4.41

Fixed asset turnover is a financial ratio that measures how efficiently a company is utilizing its fixed assets to generate revenue. The ratio is calculated by dividing total revenue by average fixed assets.

In the case of Ford Motor Company, the fixed asset turnover has shown a fluctuating trend over the past few years. It stood at 4.25 as of March 31, 2020, indicating that for every dollar of fixed assets, the company generated $4.25 in revenue. However, the ratio declined to 3.43 by December 31, 2020, before gradually increasing to 4.45 by September 30, 2024.

The increasing trend in fixed asset turnover from 2020 to 2024 suggests that Ford has improved its efficiency in using its fixed assets to generate revenue. A higher fixed asset turnover ratio indicates that the company is effectively managing its assets to drive sales and profitability.

Overall, the trend in Ford's fixed asset turnover reflects varying levels of asset utilization efficiency over the years, with recent improvements showing the company's efforts to optimize the use of its fixed assets.