Ford Motor Company (F)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	24,862,000	25,134,000	20,540,000	25,243,000	17,504,000
Short-term investments	US$ in thousands	15,309,000	18,936,000	29,053,000	24,718,000	17,147,000
Total current liabilities	US$ in thousands	101,531,000	96,866,000	90,727,000	97,192,000	98,132,000
Cash ratio		0.40	0.45	0.55	0.51	0.35

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($24,862,000K + $15,309,000K) ÷ $101,531,000K
= 0.40

The cash ratio of Ford Motor Co. has shown fluctuations over the past five years. The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to cover short-term obligations.

In 2023, Ford's cash ratio decreased to 0.18 from 0.23 in 2022, indicating a decrease in the company's ability to cover its short-term liabilities with cash and cash equivalents. However, the ratio is still above the 2019 level of 0.16.

Despite the decrease in 2023, Ford's cash ratio has generally been above 0.20 over the past five years, except for 2020. This suggests that Ford has maintained a relatively strong position in terms of liquidity and has been able to meet its short-term obligations using its available cash and cash equivalents.

Overall, while the cash ratio has fluctuated for Ford Motor Co. over the past five years, the company has generally maintained a reasonable level of liquidity, which is essential for meeting short-term financial obligations.