Ford Motor Company (F)

Cash ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	22,935,000	24,862,000	25,134,000	20,540,000	25,243,000
Short-term investments	US$ in thousands	15,413,000	15,309,000	18,936,000	29,053,000	24,718,000
Total current liabilities	US$ in thousands	106,859,000	101,531,000	96,866,000	90,727,000	97,192,000
Cash ratio		0.36	0.40	0.45	0.55	0.51

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($22,935,000K + $15,413,000K) ÷ $106,859,000K
= 0.36

The cash ratio for Ford Motor Company has shown some fluctuation over the past five years. The ratio was 0.51 as of December 31, 2020, indicating that the company had $0.51 in cash and cash equivalents for every $1 of current liabilities.

Over the next four years, the cash ratio continued to vary, reaching 0.55 on December 31, 2021, before declining to 0.45, 0.40, and finally 0.36 by December 31, 2024.

The decreasing trend in the cash ratio suggests that Ford may be becoming less liquid over time with less cash available to cover its short-term obligations. This could potentially indicate a need for the company to manage its liquidity more effectively or improve its cash flow generation activities. However, further analysis would be required to determine the underlying reasons for this trend and its implications for the company's financial health.