Ford Motor Company (F)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 285,196,000 | 273,310,000 | 255,884,000 | 257,035,000 | 267,261,000 |
| Total stockholders’ equity | US$ in thousands | 44,835,000 | 42,773,000 | 43,242,000 | 48,519,000 | 30,690,000 |
| Financial leverage ratio | 6.36 | 6.39 | 5.92 | 5.30 | 8.71 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $285,196,000K ÷ $44,835,000K
= 6.36
The financial leverage ratio, also known as the debt ratio, measures the extent to which a company relies on debt to finance its operations. A higher financial leverage ratio indicates that a company has more debt relative to its equity.
Analyzing the financial leverage ratio of Ford Motor Company over the years, we observe a gradual decrease from 8.71 in December 2020 to 5.30 in December 2021, followed by fluctuations between 5.92 and 6.39 in the following years, with a slight decrease to 6.36 by December 2024.
This reduction in the financial leverage ratio signifies that Ford Motor Company has been gradually decreasing its dependency on debt as a source of financing, which could indicate a more conservative approach to its capital structure. It is crucial for investors and stakeholders to monitor this trend as it may reflect the company's ability to manage its debt levels effectively and maintain financial stability.
Peer comparison
Dec 31, 2024