Ford Motor Company (F)

Operating return on assets (Operating ROA)

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
Operating income (ttm) US$ in thousands 5,219,000 3,743,000 3,992,000 4,570,000 5,458,000 7,264,000 6,639,000 7,046,000 6,276,000 5,454,000 6,292,000 3,402,000 4,523,000 1,342,000 2,351,000 -386,000 -4,408,000 -2,423,000 -5,035,000 -2,186,000
Total assets US$ in thousands 285,196,000 287,047,000 276,586,000 274,341,000 273,310,000 268,073,000 265,991,000 256,800,000 255,884,000 246,919,000 245,755,000 252,986,000 257,035,000 252,677,000 248,532,000 260,819,000 267,261,000 259,943,000 269,366,000 264,150,000
Operating ROA 1.83% 1.30% 1.44% 1.67% 2.00% 2.71% 2.50% 2.74% 2.45% 2.21% 2.56% 1.34% 1.76% 0.53% 0.95% -0.15% -1.65% -0.93% -1.87% -0.83%

December 31, 2024 calculation

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

Operating return on assets (Operating ROA) is a key financial ratio that indicates how efficient a company is at generating profits from its assets used in operations. For Ford Motor Company, the Operating ROA has shown variability over the reported period.

- The Operating ROA was negative in the first half of 2020, indicating that Ford was not efficient in generating profits from its operating assets during that time.

- However, there was a significant turnaround in the latter half of 2020, with the Operating ROA starting to become positive and improving steadily into 2021 and 2022.

- From 2022 onwards, Ford's Operating ROA maintained an upward trend, reaching its peak at 2.74% in March 2023, indicating an improvement in the company's ability to generate profits from its operating assets.

- In the following quarters, the Operating ROA fluctuated slightly but generally remained above 1%, showing a decent level of operational efficiency.

Overall, the trend in Ford Motor Company's Operating ROA indicates an initial struggle followed by a turnaround and improvement in the company's operational profitability. This suggests that Ford was able to better utilize its operating assets to generate profits over the reported period.