Ford Motor Company (F)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 5,219,000 | 11,598,000 | 6,276,000 | 4,523,000 | -4,408,000 |
| Long-term debt | US$ in thousands | — | — | — | — | 291,000 |
| Total stockholders’ equity | US$ in thousands | 44,835,000 | 42,773,000 | 43,242,000 | 48,519,000 | 30,690,000 |
| Return on total capital | 11.64% | 27.12% | 14.51% | 9.32% | -14.23% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $5,219,000K ÷ ($—K + $44,835,000K)
= 11.64%
The return on total capital for Ford Motor Company has shown significant fluctuations over the past five years, indicating varying levels of efficiency in generating returns from its total capital employed.
As of December 31, 2020, the return on total capital was negative at -14.23%, suggesting that the company was not effectively utilizing its total capital to generate profits.
However, by December 31, 2021, there was a notable improvement, with the return on total capital increasing to 9.32%, indicating a turnaround in the company's capital efficiency.
The trend continued to improve in the following years, with the return on total capital reaching 14.51% by December 31, 2022, and further increasing to 27.12% by December 31, 2023. These significant improvements suggest that Ford Motor Company was able to enhance its profitability and efficiency in utilizing its total capital effectively.
By December 31, 2024, the return on total capital slightly decreased to 11.64%, which could be attributed to various internal and external factors impacting the company’s financial performance.
Overall, the upward trend in the return on total capital over the years indicates positive momentum and improved capital efficiency for Ford Motor Company, reflecting positively on its operational performance and financial health.
Peer comparison
Dec 31, 2024