Ford Motor Company (F)

Cash conversion cycle

		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	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Cash conversion cycle	days	162.93	170.05	167.58	171.59	163.54	162.22	163.26	160.45	160.11	154.04	147.80	163.74	150.05	155.48	152.95	181.46	181.31	174.82	173.61	177.75

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 31.63 + 131.30 – —
= 162.93

The cash conversion cycle of Ford Motor Company has fluctuated over the past few years, indicating changes in its efficiency in managing cash flow from operations.

From March 31, 2020, to December 31, 2022, the cash conversion cycle showed some variability, peaking at 181.46 days in March 31, 2021, and then decreasing to 147.80 days by June 30, 2022. This decline suggests the company improved its ability to convert its inventories into cash during this period.

However, in the following quarters up to December 31, 2024, the cash conversion cycle started to increase again, reaching 170.05 days in September 30, 2024. This rise may indicate challenges in managing cash flow efficiency, potentially attributed to factors such as inventory management issues or challenges in accounts receivable collections.

Overall, Ford Motor Company should focus on continuous monitoring and enhancement of its cash conversion cycle to optimize its working capital management and improve overall financial performance.