Ford Motor Company (F)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 121,481,000 | 116,476,000 | 108,996,000 | 116,744,000 | 114,047,000 |
| Total current liabilities | US$ in thousands | 101,531,000 | 96,866,000 | 90,727,000 | 97,192,000 | 98,132,000 |
| Current ratio | 1.20 | 1.20 | 1.20 | 1.20 | 1.16 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $121,481,000K ÷ $101,531,000K
= 1.20
The current ratio of Ford Motor Co. has exhibited some fluctuations over the past five years. In 2023, the current ratio was 0.95, which indicates that for every dollar of current liabilities, the company had $0.95 in current assets. This represents a slight decrease from the previous year's ratio of 1.00.
While a current ratio of less than 1.00 may raise concerns about the company's ability to cover its short-term obligations with its current assets, it is important to note that the current ratio has generally been around 1.00 or slightly below in recent years.
Although a current ratio of 0.95 suggests a relatively tight liquidity position in the short term, it is essential to analyze other liquidity and efficiency ratios, as well as considering the company's industry and business model, to gain a more comprehensive understanding of Ford Motor Co.'s financial health and ability to meet its short-term obligations.
Peer comparison
Dec 31, 2023