Ford Motor Company (F)

Inventory 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
Cost of revenue (ttm)	US$ in thousands	162,102,000	164,289,000	160,567,000	155,699,000	149,527,000	150,169,000	145,813,000	135,306,000	135,547,000	130,908,000	131,706,000	126,046,000	127,658,000	129,027,000	130,719,000	147,748,000	151,429,000	140,196,000	142,094,000	144,046,000
Inventory	US$ in thousands	15,651,000	18,326,000	17,703,000	16,212,000	14,080,000	15,213,000	13,976,000	14,647,000	12,065,000	13,508,000	13,593,000	12,742,000	10,808,000	10,583,000	10,220,000	11,312,000	10,786,000	12,451,000	12,437,000	12,333,000
Inventory turnover		10.36	8.96	9.07	9.60	10.62	9.87	10.43	9.24	11.23	9.69	9.69	9.89	11.81	12.19	12.79	13.06	14.04	11.26	11.43	11.68

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $162,102,000K ÷ $15,651,000K
= 10.36

The inventory turnover ratio of Ford Motor Co. has shown some fluctuation over the past eight quarters. Inventory turnover measures how efficiently a company is managing its inventory by indicating how many times the company sells and replaces its inventory during a specific period.

In Q4 2023, Ford's inventory turnover ratio stood at 9.62, indicating that the company sold and replaced its inventory approximately 9.62 times during that quarter. This represents an increase from the previous quarter (Q3 2023) where the ratio was 8.05.

Looking further back, we see that the inventory turnover ratio has generally been in the range of 8 to 9 times over the past two years, with a peak of 9.62 in Q4 2023 and a low of 7.81 in Q1 2022.

The upward trend in inventory turnover over the past few quarters suggests that Ford has been more efficient in managing its inventory and converting it into sales. A higher inventory turnover ratio typically indicates that the company is selling products quickly, which can be a positive sign of strong sales and effective inventory management.

Overall, based on the inventory turnover data, it appears that Ford Motor Co. has been effectively managing its inventory levels and is experiencing improved efficiency in converting inventory into sales.