Ford Motor Company (F)
Receivables 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 |
| Receivables | US$ in thousands | 62,026,000 | 57,701,000 | 57,039,000 | 55,270,000 | 54,449,000 | 48,666,000 | 45,753,000 | 45,806,000 | 43,913,000 | 43,451,000 | 43,089,000 | 51,112,000 | 52,394,000 | 51,961,000 | 51,827,000 | 61,514,000 | 62,888,000 | 61,804,000 | 64,697,000 | 67,460,000 |
| 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 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $176,452,000K ÷ $62,026,000K
= 2.84
Ford Motor Co.'s receivables turnover ratio has been showing consistent improvement over the past few quarters. The ratio has increased from 10.05 in Q4 2022 to 11.29 in Q4 2023. This signifies that the company is collecting its accounts receivable more efficiently, as a higher turnover ratio indicates a quicker conversion of receivables into cash.
The upward trend in the receivables turnover ratio suggests that Ford is managing its credit policies effectively or has been successful in accelerating its collections from customers. This can be a positive sign for the company's financial health, as it indicates good liquidity management and a reduced risk of bad debts.
The average receivables turnover for the most recent four quarters is approximately 11.15 times. This implies that on average, Ford is able to collect its outstanding receivables around 11 times over a one-year period. It is essential to monitor this ratio over time to ensure that the company maintains its efficiency in collecting receivables and managing its cash flow effectively.
Peer comparison
Dec 31, 2023