Ford Motor Company (F)

Operating return on assets (Operating ROA)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Operating income	US$ in thousands	5,219,000	5,458,000	6,276,000	4,523,000	-4,408,000
Total assets	US$ in thousands	285,196,000	273,310,000	255,884,000	257,035,000	267,261,000
Operating ROA		1.83%	2.00%	2.45%	1.76%	-1.65%

December 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $5,219,000K ÷ $285,196,000K
= 1.83%

Operating ROA is a key financial ratio that indicates how well a company generates profits from its assets used in its core operations. Analyzing Ford Motor Company's Operating ROA over the past five years, we can see a fluctuating trend:

- In December 2020, Ford's Operating ROA was -1.65%, indicating that the company was experiencing operational inefficiencies, where it was not effectively utilizing its assets to generate profits.
- By December 2021, the Operating ROA improved significantly to 1.76%, indicating that Ford was able to enhance its operational efficiency and generate a positive return on its assets.
- The trend continued to improve in December 2022, with an Operating ROA of 2.45%, showing a further increase in profitability generated from its core operations.
- However, there was a slight dip in December 2023, with an Operating ROA of 2.00%, suggesting a minor decline in profitability compared to the previous year.
- In December 2024, the Operating ROA decreased slightly to 1.83%, indicating a continued but moderate profitability from the company's operating activities.

Overall, despite some fluctuations, Ford Motor Company has shown a general improvement in its Operating ROA over the years, reflecting the company's efforts to enhance operational efficiency and effectively utilize its assets to generate profits. Further monitoring of this ratio will be necessary to assess the company's ongoing operational performance and efficiency.