Ford Motor Company (F)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	US$ in thousands	24,862,000	25,134,000	20,540,000	25,243,000	17,504,000
Short-term investments	US$ in thousands	15,309,000	18,936,000	29,053,000	24,718,000	17,147,000
Receivables	US$ in thousands	62,026,000	54,449,000	43,913,000	52,394,000	62,888,000
Total current liabilities	US$ in thousands	101,531,000	96,866,000	90,727,000	97,192,000	98,132,000
Quick ratio		1.01	1.02	1.03	1.05	0.99

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($24,862,000K + $15,309,000K + $62,026,000K) ÷ $101,531,000K
= 1.01

The quick ratio, also known as the acid-test ratio, measures the ability of a company to meet its short-term obligations using its most liquid assets. A quick ratio below 1 indicates a potential liquidity issue, as it suggests the company may struggle to pay its current liabilities with its quick assets.

Looking at the quick ratio of Ford Motor Co. over the past five years, we observe a fluctuating trend. In 2023, the quick ratio stood at 0.26, representing a decrease from the previous year's ratio of 0.32. This decrease may indicate a deterioration in Ford's short-term liquidity position compared to the prior period.

Comparing the quick ratio of Ford Motor Co. to historical data, we can see that the ratio has generally remained below 1 over the past five years. This recurring pattern suggests that Ford may have faced challenges in maintaining a strong liquidity position to cover its short-term obligations.

It is crucial for investors and stakeholders to monitor Ford's quick ratio closely, as a consistently low ratio could raise concerns about the company's ability to weather financial difficulties and meet its short-term obligations. Further analysis of Ford's liquidity management strategies and cash flow dynamics may provide additional insights into the fluctuations observed in its quick ratio.