Ford Motor Company (F)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	172,854,000	162,368,000	149,555,000	135,333,000	127,944,000
Inventory	US$ in thousands	14,951,000	15,651,000	14,080,000	12,065,000	10,808,000
Inventory turnover		11.56	10.37	10.62	11.22	11.84

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $172,854,000K ÷ $14,951,000K
= 11.56

Ford Motor Company's inventory turnover has shown a relatively consistent trend over the past five years. In 2020, the inventory turnover was 11.84 times, indicating that Ford sold and replaced its inventory nearly 12 times during that year. The ratio decreased slightly to 11.22 in 2021, but remained relatively high, suggesting efficient management of inventory levels.

However, in the following years, the inventory turnover continued to decrease, reaching 10.37 times in 2023. This may indicate a slowdown in the sales of inventory relative to the amount of inventory held by the company. In 2024, there was a slight improvement with the turnover increasing to 11.56 times.

Overall, Ford Motor Company's inventory turnover has fluctuated within a relatively narrow range, with a slight downward trend over the years. It is important for the company to closely monitor inventory levels and sales performance to ensure optimal utilization of its inventory and efficient management of working capital.