Ford Motor Company (F)

Fixed asset turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	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	155,900,000	157,978,000	158,654,000	158,721,000
Property, plant and equipment	US$ in thousands	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	36,469,000	35,404,000	36,581,000	36,145,000
Fixed asset turnover		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	4.27	4.46	4.34	4.39

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $176,452,000K ÷ $40,821,000K
= 4.32

The fixed asset turnover ratio measures how efficiently a company is generating revenue from its fixed assets. A higher fixed asset turnover ratio indicates that the company is effectively utilizing its fixed assets to generate sales.

In the case of Ford Motor Co., the fixed asset turnover ratio has been relatively stable over the past eight quarters, ranging from 3.67 to 4.43. This indicates that Ford has been consistently efficient in generating revenue from its fixed assets during this period.

The upward trend in the fixed asset turnover ratio from Q1 2022 to Q3 2023 suggests that Ford has improved its efficiency in utilizing its fixed assets to generate sales. This could be due to various factors such as improved production processes, better inventory management, or increased sales volume.

Overall, a fixed asset turnover ratio above 1 indicates that Ford is effectively utilizing its fixed assets to generate revenue. The consistent and relatively high fixed asset turnover ratios over the past eight quarters reflect positively on Ford's operational efficiency in utilizing its fixed assets.