Ford Motor Company (F)

Interest coverage

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	5,458,000	7,264,000	6,639,000	7,046,000	6,276,000	5,454,000	6,292,000	3,402,000	4,523,000	1,342,000	2,351,000	-386,000	-4,408,000	-2,423,000	-5,035,000	-2,186,000	574,000	1,663,000	2,788,000	506,000
Interest expense (ttm)	US$ in thousands	7,613,000	4,588,000	4,585,000	4,593,000	4,593,000	4,169,000	4,287,000	4,428,000	4,593,000	5,241,000	5,300,000	5,163,000	4,778,000	1,269,000	850,000	572,000	546,000	485,000	585,000	649,000
Interest coverage		0.72	1.58	1.45	1.53	1.37	1.31	1.47	0.77	0.98	0.26	0.44	-0.07	-0.92	-1.91	-5.92	-3.82	1.05	3.43	4.77	0.78

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $5,458,000K ÷ $7,613,000K
= 0.72

Ford Motor Co. has shown improvement in its interest coverage ratio over the past several quarters, indicating a stronger ability to meet its interest payment obligations. The interest coverage ratio has been relatively stable, with values ranging from 2.74 to 7.06.

In the most recent quarter, Q4 2023, the interest coverage ratio was 6.01, suggesting that Ford generated operating income 6.01 times higher than its interest expenses during that period. This indicates a solid ability to cover interest payments using its operating earnings.

Overall, Ford's interest coverage has been consistently above 1, demonstrating that the company has sufficient operating income to comfortably meet its interest expenses. However, fluctuations in the ratio over time may indicate varying levels of profitability or debt management within the company. Further analysis of Ford's financial performance and debt structure would provide a more complete understanding of its financial health.