Ford Motor Company (F)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (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 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 291,000 | — | — | — |
| Total stockholders’ equity | US$ in thousands | 44,835,000 | 44,315,000 | 43,567,000 | 42,870,000 | 42,773,000 | 44,263,000 | 43,677,000 | 42,366,000 | 43,242,000 | 42,125,000 | 44,169,000 | 44,985,000 | 48,519,000 | 36,593,000 | 34,664,000 | 33,828,000 | 30,690,000 | 33,125,000 | 30,824,000 | 29,650,000 |
| Return on total capital | 11.64% | 8.45% | 9.16% | 10.66% | 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% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $5,219,000K ÷ ($—K + $44,835,000K)
= 11.64%
Ford Motor Company's return on total capital has shown fluctuations over the past few years.
From March 31, 2020, to June 30, 2021, the return on total capital was negative, indicating that the company was not generating sufficient returns on the capital invested in the business. However, starting from June 30, 2021, the return on total capital turned positive, showing an improving trend.
The return on total capital increased steadily from June 30, 2021, to March 31, 2024, reaching a peak of 16.63% on March 31, 2023. This suggests that Ford was able to generate better returns on the total capital employed in its operations during this period.
Although there was a slight decline in the return on total capital from March 31, 2023, to December 31, 2024, the figures remained above 10%, indicating that the company continued to deliver satisfactory returns on the total capital invested.
Overall, the trend in Ford's return on total capital reflects a turnaround from negative to positive returns, showcasing the company's efforts to optimize the utilization of its capital and improve its financial performance.
Peer comparison
Dec 31, 2024