Ford Motor Company (F)
Quick ratio
| 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 | US$ in thousands | 22,935,000 | 23,449,000 | 19,953,000 | 19,721,000 | 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 |
| Short-term investments | US$ in thousands | 15,413,000 | 13,456,000 | 14,613,000 | 14,742,000 | 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 |
| Receivables | US$ in thousands | 66,573,000 | 65,809,000 | 64,236,000 | 63,298,000 | 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 |
| Total current liabilities | US$ in thousands | 106,859,000 | 109,036,000 | 103,403,000 | 103,206,000 | 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 |
| 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 |
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, also known as the acid-test ratio, is a financial metric that assesses a company's ability to meet its short-term obligations with its most liquid assets, excluding inventory. A quick ratio of 1 or higher indicates that a company possesses sufficient liquid assets to cover its current liabilities.
Analyzing Ford Motor Company's Quick Ratio over the past few years reveals fluctuations in its ability to meet short-term obligations. The quick ratio ranged from a high of 1.17 in June 2020 to a low of 0.94 in September 2024. The ratio generally hovered around the 1 mark, indicating that Ford's liquidity position was relatively stable during this period.
However, a declining trend in the Quick Ratio from 2022 to 2024, reaching a low of 0.94 in September 2024, may raise concerns about Ford's short-term liquidity. A ratio below 1 suggests that Ford may face challenges in meeting its current liabilities solely with its quick assets.
It is essential for investors and stakeholders to closely monitor Ford's Quick Ratio over time to assess the company's liquidity position and financial health. Additionally, further analysis of the company's cash flow and working capital management practices would provide more insights into its ability to meet short-term obligations efficiently.
Peer comparison
Dec 31, 2024