Ford Motor Company (F)

Return on equity (ROE)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	5,879,000	4,347,000	-1,981,000	17,937,000	-1,279,000
Total stockholders’ equity	US$ in thousands	44,835,000	42,773,000	43,242,000	48,519,000	30,690,000
ROE		13.11%	10.16%	-4.58%	36.97%	-4.17%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $5,879,000K ÷ $44,835,000K
= 13.11%

Ford Motor Company's return on equity (ROE) has shown a significant fluctuation over the past five years. In December 2020, the ROE was negative at -4.17%, indicating that the company was not efficiently generating profits from shareholders' equity. However, by December 2021, Ford experienced a notable improvement in ROE, reaching 36.97%, which suggests a strong performance in utilizing shareholder funds to generate earnings.

In the subsequent years, there were variations in the ROE figures. By December 2022, the ROE decreased to -4.58%, indicating a decline in the company's ability to generate profit from equity. However, there was a recovery in December 2023, with an ROE of 10.16%, showing an improvement in profitability. By December 2024, Ford's ROE further increased to 13.11%, indicating a positive trend in utilizing shareholder equity to drive earnings.

Overall, Ford Motor Company's ROE has demonstrated volatility over the years, reflecting fluctuations in profitability and efficiency in utilizing shareholders' equity. It is essential for investors and stakeholders to closely monitor these fluctuations to assess the company's ability to generate returns on invested capital.