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.