Ford Motor Company (F)

Working capital turnover

		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
Revenue (ttm)	US$ in thousands	185,059,000	183,244,000	180,529,000	177,660,000	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
Total current assets	US$ in thousands	124,474,000	125,099,000	120,518,000	120,595,000	121,481,000	121,361,000	121,712,000	115,123,000	116,476,000	108,088,000	100,469,000	106,142,000	108,996,000	106,968,000	101,275,000	113,932,000	116,744,000	111,765,000	124,111,000	124,276,000
Total current liabilities	US$ in thousands	106,859,000	109,036,000	103,403,000	103,206,000	101,531,000	100,268,000	101,015,000	95,905,000	96,866,000	90,167,000	86,452,000	90,352,000	90,727,000	89,033,000	83,474,000	94,249,000	97,192,000	93,159,000	92,780,000	94,494,000
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

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $185,059,000K ÷ ($124,474,000K – $106,859,000K)
= 10.51

Ford Motor Company's working capital turnover has shown a generally positive trend over the analyzed periods, indicating the company's ability to efficiently utilize its working capital to generate sales revenue. The working capital turnover ratio, which measures how efficiently a company is using its working capital to support sales growth, has consistently improved from 5.03 in March 2020 to 10.51 in December 2024.

A higher working capital turnover ratio indicates that Ford is effectively managing its working capital to support its operations and generate revenue. The significant increase in the ratio over the period highlights the company's improved efficiency in utilizing its current assets and liabilities to support its sales activities.

This upward trend in working capital turnover suggests that Ford has been able to enhance its operational efficiency and optimize its working capital management practices. By maintaining a high working capital turnover ratio, the company is able to generate more revenue relative to the amount of working capital invested, which is a positive indicator of its financial health and operational performance.