Ford Motor Company (F)

Activity ratios

Short-term

Turnover ratios

	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
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
Receivables turnover	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	2.48	2.56	2.45	2.35
Payables turnover	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Working capital turnover	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	9.80	9.48	7.93	7.23

Inventory turnover for Ford has been consistently high over the past eight quarters, ranging from 8.05 to 9.62, indicating that the company efficiently manages its inventory levels and quickly converts inventory into sales.

Receivables turnover has also shown a stable trend, fluctuating between 10.05 and 11.73. This suggests that Ford is efficient in collecting payments from customers, with a higher turnover ratio indicating faster collection of accounts receivable.

Payables turnover, ranging from 4.77 to 5.79, reflects how effectively Ford pays its suppliers. A higher ratio signifies that the company takes longer to pay its suppliers, possibly indicating favorable credit terms negotiated with vendors.

The working capital turnover figure is missing for all quarters except Q3 2022, where it stands at 381.25. This indicates that for that particular quarter, Ford generated $381.25 in sales for every dollar of working capital employed.

Overall, Ford Motor Co. demonstrates efficiency in managing its inventory, receivables, and payables based on the activity ratios provided.

Average number of days

		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
Days of inventory on hand (DOH)	days	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	26.00	32.42	31.95	31.25
Days of sales outstanding (DSO)	days	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	147.24	142.79	148.84	155.13
Number of days of payables	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—

The activity ratios for Ford Motor Co. provide insight into the efficiency of the company's operations in managing inventory, collecting receivables, and paying suppliers.

1. Days of Inventory on Hand (DOH):
DOH measures how quickly inventory is sold or used by the company. A lower number of days indicates efficient inventory management. Ford's DOH has fluctuated over the quarters, ranging from 37.94 days to 46.74 days. Overall, the trend shows a relatively stable performance in managing inventory levels.

2. Days of Sales Outstanding (DSO):
DSO reflects how long it takes for the company to collect its accounts receivable. A lower DSO indicates effective credit management and timely collection of outstanding invoices. Ford's DSO has shown slight fluctuations but generally remains within a range of 31 to 37 days. This indicates that Ford is efficient in collecting receivables from customers.

3. Number of Days of Payables:
This ratio represents the average number of days it takes for the company to pay its suppliers. A higher number of days indicates that the company is taking longer to settle its payables. Ford's number of days of payables has varied between 63.02 days and 76.56 days. The trend suggests that Ford has been managing its payables effectively by keeping payment periods within a reasonable range.

In summary, Ford Motor Co. has demonstrated efficiency in managing its inventory levels, collecting receivables promptly, and managing its payables effectively. The company's activity ratios indicate a balanced approach to optimizing working capital and maintaining healthy relationships with both customers and suppliers.

Long-term

	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
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
Total asset turnover	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	0.60	0.61	0.61	0.60

Ford Motor Co.'s long-term activity ratios reveal insights into the efficiency of the company's asset utilization. The fixed asset turnover has shown a stable trend over the past eight quarters, ranging from 3.67 to 4.43, with a Q4 2023 ratio of 4.32. This indicates that Ford generates $4.32 in revenue for every dollar invested in fixed assets, reflecting efficient utilization of these long-term assets.

In comparison, the total asset turnover has also exhibited consistency, hovering between 0.53 and 0.65. The Q4 2023 ratio of 0.64 suggests that for every dollar of total assets, Ford generates $0.64 in revenue. This indicates that the company is effectively leveraging its total assets to generate sales.

Overall, both the fixed asset turnover and total asset turnover ratios demonstrate solid performance in efficiently utilizing long-term assets to drive revenue for Ford Motor Co. A consistent or improving trend in these ratios is indicative of effective management of the company's long-term assets to support its operational activities and revenue generation.