Ford Motor Company (F)
Financial leverage ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 285,196,000 | 287,047,000 | 276,586,000 | 274,341,000 | 273,310,000 | 268,073,000 | 265,991,000 | 256,800,000 | 255,884,000 | 246,919,000 | 245,755,000 | 252,986,000 | 257,035,000 | 252,677,000 | 248,532,000 | 260,819,000 | 267,261,000 | 259,943,000 | 269,366,000 | 264,150,000 |
| Total stockholders’ equity | US$ in thousands | 44,835,000 | 44,315,000 | 43,567,000 | 42,870,000 | 42,773,000 | 44,263,000 | 43,677,000 | 42,366,000 | 43,242,000 | 42,125,000 | 44,169,000 | 44,985,000 | 48,519,000 | 36,593,000 | 34,664,000 | 33,828,000 | 30,690,000 | 33,125,000 | 30,824,000 | 29,650,000 |
| Financial leverage ratio | 6.36 | 6.48 | 6.35 | 6.40 | 6.39 | 6.06 | 6.09 | 6.06 | 5.92 | 5.86 | 5.56 | 5.62 | 5.30 | 6.91 | 7.17 | 7.71 | 8.71 | 7.85 | 8.74 | 8.91 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $285,196,000K ÷ $44,835,000K
= 6.36
The financial leverage ratio of Ford Motor Company has exhibited a declining trend over the past few years, indicating a reduction in the company's reliance on debt to finance its operations. As of December 31, 2024, the financial leverage ratio stood at 6.36, which suggests that for every dollar of equity, the company has $6.36 of debt. This ratio has decreased from a peak of 8.91 in March 2020, reflecting Ford's efforts to improve its financial structure and reduce debt levels.
The gradual decline in the financial leverage ratio could indicate that Ford is becoming less risky in terms of its debt burden, which may result in lower interest expenses and greater financial stability. A lower financial leverage ratio generally signals a stronger balance sheet and a lower probability of default.
However, it is important to note that while a lower financial leverage ratio can be positive in terms of risk management, it may also imply limited opportunities for leveraging debt for potential growth or expansion. Overall, Ford's decreasing financial leverage ratio suggests a more conservative approach to capital structure management, which could have both advantages and limitations in the company's future financial strategy.
Peer comparison
Dec 31, 2024