Ford Motor Company (F)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | 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 |
| Receivables | US$ in thousands | 66,573,000 | 62,026,000 | 54,449,000 | 43,913,000 | 52,394,000 |
| Total current liabilities | US$ in thousands | 106,859,000 | 101,531,000 | 96,866,000 | 90,727,000 | 97,192,000 |
| Quick ratio | 0.98 | 1.01 | 1.02 | 1.03 | 1.05 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($22,935,000K
+ $15,413,000K
+ $66,573,000K)
÷ $106,859,000K
= 0.98
The quick ratio of Ford Motor Company has been showing a slight downward trend over the past five years, decreasing from 1.05 in December 2020 to 0.98 in December 2024.
A quick ratio of above 1 indicates that Ford has enough liquid assets to cover its current liabilities. While the company's quick ratio has decreased slightly over time, it remains above the critical 1:1 threshold. This suggests that Ford still has a comfortable level of short-term liquidity to meet its immediate obligations.
However, the decreasing trend in the quick ratio may signify a potential risk if it continues to decline further. Ford should closely monitor its liquidity position and consider strategies to maintain or improve its quick ratio to ensure ongoing financial stability and ability to meet short-term obligations promptly.
Peer comparison
Dec 31, 2024