Ford Motor Company (F)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 6.56% | 7.85% | 5.38% | 0.74% | -0.63% |
| Operating profit margin | 2.82% | 3.10% | 3.97% | 3.32% | -3.47% |
| Pretax margin | 3.90% | 2.26% | -1.80% | 13.06% | -0.88% |
| Net profit margin | 3.18% | 2.47% | -1.25% | 13.16% | -1.01% |
The profitability ratios for Ford Motor Company show a fluctuating trend over the years.
- Gross profit margin has improved from negative levels in 2020 to reach 6.56% by December 31, 2024. This indicates that Ford has been able to increase its revenue after deducting the cost of goods sold.
- Operating profit margin has also shown improvement from negative levels in 2020 to 2.82% by December 31, 2024. This suggests that Ford has been able to manage its operating expenses more efficiently.
- Pretax margin saw a significant improvement from negative levels in 2020 to 3.90% by December 31, 2024. This indicates that Ford has been able to generate more income before accounting for taxes.
- Net profit margin has also shown improvement from negative levels in 2020 to 3.18% by December 31, 2024. This signifies that Ford has been able to effectively manage its expenses to increase its bottom line profitability.
Overall, the increasing trend in these profitability ratios reflects Ford's efforts in enhancing operational efficiency and managing costs to improve its financial performance over time.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 1.83% | 2.00% | 2.45% | 1.76% | -1.65% |
| Return on assets (ROA) | 2.06% | 1.59% | -0.77% | 6.98% | -0.48% |
| Return on total capital | 11.64% | 27.12% | 14.51% | 9.32% | -14.23% |
| Return on equity (ROE) | 13.11% | 10.16% | -4.58% | 36.97% | -4.17% |
Based on the provided data, let's analyze the profitability ratios of Ford Motor Company:
1. Operating return on assets (Operating ROA):
- The operating return on assets has shown a positive trend over the years, increasing from -1.65% in 2020 to 2.45% in 2022. However, it slightly declined to 1.83% in 2024.
2. Return on assets (ROA):
- The return on assets also displays fluctuations, starting from a negative value in 2020 to reaching a peak of 6.98% in 2021, and then fluctuating between negative and positive values in the following years.
3. Return on total capital:
- The return on total capital has been volatile, with a significant decrease in 2021 followed by a sharp increase in 2023. The ratio reached its highest point in 2023 at 27.12% before declining in 2024.
4. Return on equity (ROE):
- The return on equity has seen substantial variability, with a negative figure in 2020, a remarkable surge to 36.97% in 2021, and subsequently fluctuating in the following years, albeit at positive levels.
Overall, Ford Motor Company's profitability ratios demonstrate fluctuations and variability over the years, reflecting the company's performance in generating profits in relation to its assets, capital, and equity. Further analysis and examination of the company's financial performance and operational efficiency would be warranted to understand the factors driving these fluctuations.