Ford Motor Company (F)
Quick ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 24,862,000 | 26,427,000 | 26,406,000 | 22,144,000 | 25,134,000 | 21,548,000 | 19,516,000 | 21,013,000 | 20,540,000 | 27,429,000 | 22,955,000 | 21,826,000 | 25,243,000 | 24,263,000 | 30,989,000 | 25,971,000 | 17,504,000 | 20,523,000 | 22,117,000 | 20,848,000 |
| Short-term investments | US$ in thousands | 15,309,000 | 14,688,000 | 16,415,000 | 17,369,000 | 18,936,000 | 18,625,000 | 17,184,000 | 20,215,000 | 29,053,000 | 18,997,000 | 18,081,000 | 24,281,000 | 24,718,000 | 20,568,000 | 26,141,000 | 20,399,000 | 17,147,000 | 16,808,000 | 15,931,000 | 16,882,000 |
| Receivables | US$ in thousands | 62,026,000 | 57,701,000 | 57,039,000 | 55,270,000 | 54,449,000 | 48,666,000 | 45,753,000 | 45,806,000 | 43,913,000 | 43,451,000 | 43,089,000 | 51,112,000 | 52,394,000 | 51,961,000 | 51,827,000 | 61,514,000 | 62,888,000 | 61,804,000 | 64,697,000 | 67,460,000 |
| Total current liabilities | US$ in thousands | 101,531,000 | 100,268,000 | 101,015,000 | 95,905,000 | 96,866,000 | 90,167,000 | 86,452,000 | 90,352,000 | 90,727,000 | 89,033,000 | 83,474,000 | 94,249,000 | 97,192,000 | 93,159,000 | 92,780,000 | 94,494,000 | 98,132,000 | 99,087,000 | 98,334,000 | 99,237,000 |
| Quick ratio | 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 | 0.99 | 1.00 | 1.04 | 1.06 |
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 a company's ability to pay off its current liabilities with its most liquid assets. Ford Motor Co.'s quick ratio has been gradually declining over the past eight quarters, indicating a weakening ability to meet short-term obligations without relying on inventory.
In Q4 2023, the quick ratio was at 0.26, the lowest level in the provided data set. This suggests that Ford may face challenges in meeting its immediate debt obligations using its readily available assets.
The trend of decreasing quick ratios over the past two years may raise concerns about the company's liquidity position and its ability to weather any short-term financial difficulties. It is important for investors and analysts to monitor Ford's liquidity closely, as a sustained decline in the quick ratio could indicate potential financial distress.
Peer comparison
Dec 31, 2023