Ford Motor Company (F)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 11,598,000 | 6,276,000 | 4,523,000 | -4,408,000 | 574,000 |
| Interest expense | US$ in thousands | 7,613,000 | 4,593,000 | 4,593,000 | 5,051,000 | 5,409,000 |
| Interest coverage | 1.52 | 1.37 | 0.98 | -0.87 | 0.11 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $11,598,000K ÷ $7,613,000K
= 1.52
Ford Motor Co.'s interest coverage ratio has shown a positive trend over the last five years. The ratio has increased from 1.71 in 2019 to 6.01 in 2023, indicating the company's improved ability to cover its interest obligations with operating income. In 2020, Ford experienced a significant decline in its interest coverage ratio to -2.07, which signified that the company's operating income was insufficient to cover its interest expenses. However, Ford managed to turn this around in the subsequent years by enhancing its profitability and operational efficiency, resulting in a more favorable interest coverage ratio. Overall, the upward trend in Ford's interest coverage ratio reflects better financial health and reduced risk of default due to interest payment obligations.
Peer comparison
Dec 31, 2023