Ford Motor Company (F)

Debt-to-equity ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	—	—	—	291,000	470,000
Total stockholders’ equity	US$ in thousands	42,773,000	43,242,000	48,519,000	30,690,000	33,185,000
Debt-to-equity ratio		0.00	0.00	0.00	0.01	0.01

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $42,773,000K
= 0.00

The debt-to-equity ratio of Ford Motor Co. has fluctuated over the past five years, indicating varying levels of leverage and financial risk. In 2023, the ratio increased to 3.49 from 3.21 in 2022, suggesting a higher proportion of debt relative to equity in the company's capital structure. This increase may raise concerns about Ford's ability to meet its debt obligations, as a higher ratio indicates a higher reliance on debt financing.

Comparing 2023 to 2021, there has been a steady increase in the debt-to-equity ratio from 2.85 to 3.49, indicating a trend of increasing leverage over the past three years. While some level of debt is common and necessary for growth and operations, a continuously rising ratio may indicate potential financial distress or inefficiencies in managing debt levels.

In 2020, Ford experienced a significant spike in the debt-to-equity ratio to 5.27, which could be a result of increased borrowing or a decrease in shareholder equity. This sudden jump may signal heightened financial risk and raise concerns among investors and creditors about the company's financial health.

The ratio decreased to 4.68 in 2019 from the previous year, indicating a reduction in leverage or an increase in equity. However, Ford's debt-to-equity ratio in 2019 was still relatively high, suggesting that the company has historically maintained a significant reliance on debt financing.

Overall, Ford's fluctuating debt-to-equity ratio reflects varying levels of financial risk and leverage over the five-year period. Investors and analysts should closely monitor this ratio to assess Ford's ability to manage its debt levels and financial obligations effectively.