Ford Motor Company (F)

Debt-to-equity ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
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
Debt-to-equity ratio		0.00	0.00	0.00	0.00	0.01

December 31, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $44,835,000K
= 0.00

The debt-to-equity ratio of Ford Motor Company has shown a consistently low level over the past five years based on the provided data. As of December 31, 2020, the ratio stood at 0.01, indicating that the company had a nominal amount of debt in relation to its equity. However, from December 31, 2021, through December 31, 2024, the debt-to-equity ratio has remained at 0.00, suggesting that Ford has either significantly reduced its debt levels or has increased its equity position.

A debt-to-equity ratio of 0.00 typically signifies that the company has either no debt or a negligible amount in comparison to its equity. This can be viewed positively by investors and creditors as it indicates a lower level of financial risk and a higher solvency position for Ford Motor Company. It suggests that the company may have a strong financial structure with a greater reliance on equity financing rather than debt financing to support its operations and growth initiatives.

Overall, a consistently low debt-to-equity ratio for Ford Motor Company over the analyzed period may indicate prudent financial management and a stable capital structure, positioning the company well for potential future investments and sustainable growth.