Ford Motor Company (F)

Operating return on assets (Operating ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Operating income	US$ in thousands	5,458,000	6,276,000	4,523,000	-4,408,000	574,000
Total assets	US$ in thousands	273,310,000	255,884,000	257,035,000	267,261,000	258,537,000
Operating ROA		2.00%	2.45%	1.76%	-1.65%	0.22%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $5,458,000K ÷ $273,310,000K
= 2.00%

Operating return on assets (ROA) measures the efficiency of a company in generating operating profits from its assets. Ford Motor Co.'s operating ROA has fluctuated over the past five years, indicating changes in operational performance and asset utilization.

In 2023, Ford reported an operating ROA of 2.00%, showing a slight decrease from the previous year's 2.45%. Despite the decline, the company still demonstrated the ability to generate operating income relative to its total assets.

The year 2022 marked a higher operating ROA compared to 2021, with a rate of 2.45%. This improvement suggests increased operational efficiency and better asset management, leading to higher profits generated from the company's asset base.

In 2021, Ford's operating ROA stood at 1.76%, showing a moderate performance in converting assets into operating income. This rate was an improvement from the negative ROA of -1.65% in 2020, indicating a turnaround in operational performance and asset utilization.

In 2019, Ford's operating ROA was at 0.22%, indicating a modest return on assets, but still positive. The consistent positive trend in operating ROA over the years reflects the company's efforts to enhance operational efficiency and optimize asset utilization to drive profitability.

Overall, Ford Motor Co.'s operating ROA has shown variability in recent years, but the positive trend indicates the company's focus on enhancing operational performance and effectively utilizing its asset base to generate operating income.