Ford Motor Company (F)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	22,935,000	23,449,000	19,953,000	19,721,000	24,862,000	26,427,000	26,406,000	22,144,000	25,134,000	21,548,000	19,516,000	21,013,000	20,540,000	27,429,000	22,955,000	21,826,000	25,243,000	24,263,000	30,989,000	25,971,000
Short-term investments	US$ in thousands	15,413,000	13,456,000	14,613,000	14,742,000	15,309,000	14,688,000	16,415,000	17,369,000	18,936,000	18,625,000	17,184,000	20,215,000	29,053,000	18,997,000	18,081,000	24,281,000	24,718,000	20,568,000	26,141,000	20,399,000
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
Cash ratio		0.36	0.34	0.33	0.33	0.40	0.41	0.42	0.41	0.45	0.45	0.42	0.46	0.55	0.52	0.49	0.49	0.51	0.48	0.62	0.49

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 of Ford Motor Company has displayed slight fluctuations over the years, ranging from 0.33 to 0.62. The cash ratio measures the company's ability to cover its short-term liabilities with its available cash and cash equivalents. A higher cash ratio indicates a stronger ability to settle short-term obligations without relying on external sources of funding.

Ford's cash ratio peaked at 0.62 in June 2020, suggesting a relatively high level of liquidity at that point. Subsequently, the ratio hovered between 0.40 and 0.55, indicating consistent but moderate liquidity levels. The lowest ratio of 0.33 was recorded in March and June 2024, possibly signaling tighter liquidity conditions during those periods.

Overall, Ford's cash ratio indicates a generally stable liquidity position, although fluctuations over time may suggest varying levels of cash availability to meet short-term obligations. It would be essential for the company to maintain an adequate cash position to navigate fluctuations in its operational and financial environment effectively.