Ford Motor Company (F)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 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 | 574,000 | 1,663,000 | 2,788,000 | 506,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | 291,000 | — | — | — | 470,000 | — | — | — |
| Total stockholders’ equity | US$ in thousands | 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 | 33,185,000 | 35,349,000 | 36,097,000 | 36,398,000 |
| 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% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $5,458,000K ÷ ($—K + $42,773,000K)
= 12.76%
Ford Motor Co.'s return on total capital has exhibited some fluctuations over the past eight quarters. In Q4 2023, the return on total capital stood at 4.12%, showing a slight decrease from the previous quarter's figure of 4.90%. This decline may indicate a less efficient utilization of the company's total capital during the period.
Looking further back, in Q2 2023, the return on total capital was 2.89%, which was notably lower compared to the recent quarters. However, there was a slight improvement in Q3 2023 with a return of 4.25%, suggesting a temporary rebound in capital efficiency during that period.
Comparing the latest quarter to the same period a year ago, there has been a positive trend in Ford's return on total capital. In Q4 2022, the return was 2.48%, indicating an increase in capital efficiency over the year.
Overall, Ford Motor Co.'s return on total capital has shown variability, with some quarters demonstrating stronger capital efficiency than others. It is essential for the company to closely monitor and manage its capital allocation to ensure sustained and optimal returns for its stakeholders.
Peer comparison
Dec 31, 2023