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.


See also:

Ford Motor Company Quick Ratio