Ford Motor Company (F)

Activity ratios

Short-term

Turnover ratios

	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
Inventory turnover	11.54	9.37	9.68	8.78	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
Receivables turnover	2.78	2.78	2.81	2.81	2.84	3.00	2.97	2.98	2.90	3.12	3.24	2.94	3.10	3.10	3.17	2.52	2.43	2.52	2.52	2.44
Payables turnover	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Working capital turnover	10.51	11.41	10.55	10.22	8.84	8.22	8.18	8.57	8.06	8.47	10.56	8.52	7.46	7.51	7.66	6.56	6.50	7.04	4.16	5.03

Activity ratios provide insight into how efficiently a company manages its resources and assets to generate sales and cash flow. Let's analyze the activity ratios of Ford Motor Company based on the provided data.

1. Inventory Turnover:
- Ford's inventory turnover has been gradually declining from 13.06 in March 2020 to 9.68 in June 2024. This indicates that the company is taking longer to sell its inventory, which may lead to higher carrying costs or obsolete inventory.

2. Receivables Turnover:
- The receivables turnover ratio shows an inconsistent trend, varying from 2.43 in December 2020 to 3.24 in June 2022. This suggests that Ford is collecting its receivables at different paces, which could indicate changes in sales terms or credit policies.

3. Payables Turnover:
- The payables turnover data is missing, which makes it challenging to assess how Ford manages its trade payables. The absence of this information limits the ability to evaluate the efficiency of the company's payment processes to suppliers.

4. Working Capital Turnover:
- Ford's working capital turnover has shown an increase over the years, reaching a peak of 11.41 in September 2024. This indicates that the company is efficiently utilizing its working capital to support operations and generate revenue.

In summary, Ford Motor Company's activity ratios suggest areas of strength and potential improvement. While working capital turnover has been increasing, inventory turnover is declining, and the inconsistency in receivables turnover may require closer monitoring to optimize asset utilization and cash flow management. Further insights can be gained by comparing these ratios with industry benchmarks and historical data to understand Ford's performance relative to its peers.

Average number of days

		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
Days of inventory on hand (DOH)	days	31.63	38.97	37.70	41.55	35.24	40.71	40.24	38.01	34.37	36.98	34.98	39.51	32.49	37.66	37.67	36.90	30.90	29.94	28.54	27.95
Days of sales outstanding (DSO)	days	131.30	131.08	129.87	130.04	128.30	121.51	123.02	122.44	125.74	117.07	112.82	124.22	117.56	117.81	115.28	144.56	150.41	144.88	145.07	149.81
Number of days of payables	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—

The Days of Inventory on Hand (DOH) for Ford Motor Company have shown a fluctuating trend over the past few years, ranging from around 27 days to 41 days. The increasing trend from March 31, 2021, to March 31, 2024, possibly indicates challenges in managing inventory efficiently.

In terms of Days of Sales Outstanding (DSO), Ford's performance improved from an average of about 150 days in early 2020 to around 130 days by the end of 2024. This suggests that the company has been collecting its accounts receivable at a quicker pace, which is a positive indicator of its credit management.

It's important to note that the data provided for the Number of Days of Payables is missing, which limits our ability to assess Ford's efficiency in paying its suppliers and managing its working capital effectively.

Overall, while Ford has made progress in reducing its DSO and maintaining its inventory, a more comprehensive analysis including payables data would provide a clearer picture of the company's overall activity ratios and working capital management.

Long-term

	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
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
Total asset turnover	0.65	0.64	0.65	0.65	0.65	0.65	0.64	0.64	0.62	0.61	0.60	0.53	0.53	0.53	0.55	0.49	0.48	0.50	0.48	0.57

Ford Motor Company's fixed asset turnover ratio has shown a consistent upward trend from March 2020 to December 2024, indicating the company's ability to generate sales from its investment in fixed assets. The ratio has improved from 4.25 in March 2020 to 4.41 in December 2024, reaching its peak at 4.45 in September 2024. This suggests that Ford is efficiently utilizing its fixed assets to drive revenue growth over the years.

In terms of total asset turnover, Ford's performance has also demonstrated an increasing trend, albeit with some fluctuations. The ratio has steadily increased from 0.57 in March 2020 to 0.65 in December 2024, reflecting the company's effectiveness in generating sales relative to its total assets. The ratio peaked at 0.65 in December 2023 and has maintained stability around this level.

Overall, both the fixed asset turnover and total asset turnover ratios indicate that Ford Motor Company has been successful in maximizing the utilization of its assets to drive sales and improve operational efficiency over the analyzed period.