Ford Motor Company (F)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 273,310,000 | 255,884,000 | 257,035,000 | 267,261,000 | 258,537,000 |
| Total stockholders’ equity | US$ in thousands | 42,773,000 | 43,242,000 | 48,519,000 | 30,690,000 | 33,185,000 |
| Financial leverage ratio | 6.39 | 5.92 | 5.30 | 8.71 | 7.79 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $273,310,000K ÷ $42,773,000K
= 6.39
The financial leverage ratio of Ford Motor Co. has shown fluctuations over the five-year period under review. The ratio increased from 7.79 in 2019 to 8.71 in 2020, indicating higher financial leverage in 2020. However, in the subsequent years, the ratio decreased to 5.30 in 2021, further decreasing to 5.92 in 2022, and finally reaching 6.39 in 2023.
The decreasing trend in the financial leverage ratio from 2020 to 2023 suggests that Ford Motor Co. has been lowering its reliance on debt to finance its operations. A lower financial leverage ratio generally indicates a lower level of financial risk for the company, as it signifies a smaller proportion of debt in relation to equity in its capital structure.
Overall, the fluctuations in Ford's financial leverage ratio over the years indicate changes in the company's debt-to-equity mix and its approach to managing financial risk and capital structure.
Peer comparison
Dec 31, 2023