Ford Motor Company (F)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.16 | 1.15 | 1.17 | 1.17 | 1.20 | 1.21 | 1.20 | 1.20 | 1.20 | 1.20 | 1.16 | 1.17 | 1.20 | 1.20 | 1.21 | 1.21 | 1.20 | 1.20 | 1.34 | 1.32 |
| Quick ratio | 0.98 | 0.94 | 0.96 | 0.95 | 1.01 | 0.99 | 0.99 | 0.99 | 1.02 | 0.99 | 0.95 | 0.96 | 1.03 | 1.01 | 1.01 | 1.03 | 1.05 | 1.04 | 1.17 | 1.14 |
| 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 |
Ford Motor Company's liquidity ratios indicate the company's ability to meet its short-term obligations. The current ratio has shown a slight fluctuation over the years, ranging from 1.16 to 1.34 as of December 31, 2024. This suggests that Ford has a relatively stable level of current assets to cover current liabilities.
On the other hand, the quick ratio, which provides a more stringent measure of liquidity by excluding inventories, has exhibited a more significant variation, ranging from 0.94 to 1.17. This indicates that Ford may face challenges in meeting its short-term obligations without relying on inventory sales in certain periods.
The cash ratio, reflecting the company's ability to cover current liabilities with cash and cash equivalents, has decreased from 0.62 to 0.36 from June 2020 to December 2024. This downward trend may raise concerns about Ford's cash position and ability to meet immediate payment obligations.
Overall, while Ford's current ratio suggests a generally sound liquidity position, the decreasing trend in the cash ratio and fluctuations in the quick ratio warrant further monitoring to ensure the company maintains sufficient liquidity for its operations.
See also:
Additional liquidity measure
| 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 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 |
The cash conversion cycle is a crucial financial metric that represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales. For Ford Motor Company, the cash conversion cycle has fluctuated over the years based on the provided data.
From March 31, 2020, to December 31, 2024, Ford's cash conversion cycle has shown variations, starting at 177.75 days and decreasing to 162.93 days. This indicates that Ford has taken less time to convert its investments into cash during this period.
The trend in the cash conversion cycle for Ford shows some volatility, with periods of improvement followed by slight increases. For example, there was a significant drop from June 30, 2021, to September 30, 2021, where the cycle reduced from 152.95 days to 155.48 days. However, there were some periods where the cycle increased, such as from March 31, 2023, to June 30, 2023, with an increase from 160.45 days to 163.26 days.
Analyzing the cash conversion cycle can provide insights into the efficiency of Ford's operations, inventory management, and collections processes. A decreasing cycle suggests the company is more effective in managing its working capital and generating cash from its sales activities.
It is recommended for Ford to closely monitor its cash conversion cycle to ensure continued efficiency in managing its working capital, optimizing inventory levels, and improving collection processes to support the company's financial health and performance.