Ford Motor Company (F)

Return on equity (ROE)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	4,347,000	-1,981,000	17,937,000	-1,279,000	47,000
Total stockholders’ equity	US$ in thousands	42,773,000	43,242,000	48,519,000	30,690,000	33,185,000
ROE		10.16%	-4.58%	36.97%	-4.17%	0.14%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $4,347,000K ÷ $42,773,000K
= 10.16%

Ford Motor Co.'s return on equity (ROE) has experienced fluctuating trends over the past five years. In 2023, the ROE stands at 10.16%, indicating a moderate return on shareholders' equity. This is a positive improvement compared to the negative ROE of -4.58% in 2022.

The significant decline in ROE in 2022, from 36.97% in 2021, suggests a period of decreased profitability and efficiency in generating returns for shareholders. Similarly, the negative ROE of -4.17% in 2020 and 0.14% in 2019 also point to challenges faced by the company in those years.

Overall, Ford Motor Co.'s ROE performance has shown volatility, with positive and negative swings over the past five years. Investors and analysts should further investigate the reasons behind these fluctuations to assess the company's financial health and performance in the long term.