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


See also:

Ford Motor Company Financial Leverage