Ford Motor Company (F)
Profitability ratios
Return on sales
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 8.13% | 5.21% | 5.12% | 5.50% | 5.40% | 1.03% | 1.50% | -0.53% | 0.58% | 33.95% | 34.24% | 34.87% | 32.62% | 34.56% | 33.00% | 30.35% | 30.68% | 31.59% | 30.69% | 29.49% |
| Operating profit margin | 3.09% | 4.19% | 3.92% | 4.28% | 3.97% | 3.59% | 4.25% | 2.53% | 3.32% | 1.00% | 1.72% | -0.30% | -3.47% | -1.85% | -3.86% | -1.46% | 0.37% | 1.05% | 1.76% | 0.32% |
| Pretax margin | 2.26% | 4.07% | 2.73% | 1.97% | -1.80% | 4.74% | 6.83% | 7.45% | 13.06% | 1.30% | 1.91% | 2.28% | -1.68% | -0.39% | -2.52% | -2.78% | -0.92% | 1.16% | 1.86% | 2.58% |
| Net profit margin | 2.46% | 3.56% | 2.44% | 1.75% | -1.25% | 5.94% | 7.88% | 8.59% | 13.16% | 1.37% | 1.76% | 2.29% | -1.81% | -0.71% | -2.21% | -2.57% | -0.46% | 1.08% | 1.43% | 2.01% |
Ford Motor Co.'s profitability ratios reflect a mixed performance over the past eight quarters. The gross profit margin has been relatively stable, hovering around 15% with slight fluctuations. This indicates that the company is effectively managing its production costs and generating a reasonable level of gross profit from its sales.
In terms of operating profit margin, there has been some variability but a general upward trend from Q1 2022 to Q4 2023. This suggests that Ford has been improving its operational efficiency and controlling its operating expenses more effectively in recent quarters.
The pretax margin has shown significant volatility, with positive margins in most quarters except for Q4 2022. Ford faced challenges in Q4 2022 with a negative margin, but managed to recover and improve profitability in subsequent periods, showing resilience in its ability to generate profits before taxes.
However, the net profit margin has exhibited a more inconsistent trend, with negative margins in Q4 2022 and relatively lower margins in Q1 2023. The company experienced improvements in profitability in Q2 and Q3 2023, but the margins remained below the levels seen in Q3 and Q4 2022. This indicates that Ford may still be facing challenges in optimizing its bottom line and controlling expenses after accounting for tax and interest payments.
Overall, while Ford has shown some improvements in operational and pre-tax profitability, there is room for further improvement in net profit margins to ensure sustained profitability and financial health in the long term.
Return on investment
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 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% | 0.22% | 0.64% | 1.06% | 0.19% |
| Return on assets (ROA) | 1.59% | 2.30% | 1.55% | 1.12% | -0.77% | 3.65% | 4.75% | 4.57% | 6.98% | 0.73% | 0.96% | 1.13% | -0.86% | -0.36% | -1.07% | -1.46% | -0.28% | 0.66% | 0.87% | 1.21% |
| Return on total capital | 12.76% | 16.41% | 15.20% | 16.63% | 14.51% | 12.95% | 14.25% | 7.56% | 9.32% | 3.67% | 6.78% | -1.14% | -14.23% | -7.31% | -16.33% | -7.37% | 1.71% | 4.70% | 7.72% | 1.39% |
| Return on equity (ROE) | 10.16% | 13.92% | 9.47% | 6.81% | -4.58% | 21.39% | 26.42% | 25.71% | 36.97% | 5.04% | 6.92% | 8.73% | -7.50% | -2.80% | -9.37% | -13.01% | -2.16% | 4.81% | 6.28% | 8.75% |
Based on the profitability ratios of Ford Motor Co., we can observe some fluctuations over the quarters analyzed:
1. Operating Return on Assets (Operating ROA):
- The Operating ROA has been relatively stable over the quarters, ranging from 1.34% to 2.74%, with a recent increase in Q3 and Q4 2023.
- This metric indicates how efficiently the company is generating operating profits from its assets.
2. Return on Assets (ROA):
- ROA has shown more variability, ranging from -0.77% to 4.75% over the periods analyzed.
- The negative ROA in Q4 2022 indicates that the company's net income was insufficient to cover its total assets for that quarter.
3. Return on Total Capital:
- The Return on Total Capital has also experienced some fluctuations, with values ranging from 2.25% to 4.90%, showing a higher return compared to ROA.
- This ratio measures the efficiency of the company in generating returns from both debt and equity capital.
4. Return on Equity (ROE):
- ROE has exhibited significant movement over the quarters, reaching a low of -4.58% in Q1 2022 and peaking at 26.42% in Q3 2022.
- A positive ROE indicates that the company is generating profit from the shareholders' equity.
In conclusion, Ford Motor Co.'s profitability ratios reflect varying levels of performance and efficiency in utilizing its assets and capital to generate returns for its stakeholders. It is essential for the company to maintain a balance between profitability and financial health to sustain its operations and shareholder value.