Ford Motor Company (F)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 5,219,000 | 3,743,000 | 3,992,000 | 4,570,000 | 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 |
| Interest expense (ttm) | US$ in thousands | 548,000 | 7,225,000 | 7,549,000 | 7,583,000 | 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 | 4,847,000 | 4,374,000 | 498,000 | 0 | 0 |
| Interest coverage | 9.52 | 0.52 | 0.53 | 0.60 | 0.72 | 1.58 | 1.45 | 1.53 | 1.37 | 1.31 | 1.47 | 0.77 | 0.98 | 0.26 | 0.44 | -0.08 | -1.01 | -4.87 | — | — |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $5,219,000K ÷ $548,000K
= 9.52
The interest coverage ratio of Ford Motor Company has shown fluctuating trends over the specified periods. It was negative in the earlier periods, indicating that the company's earnings were insufficient to cover its interest expenses. However, the ratio started improving from the second half of 2021 onwards, indicating a better ability to meet interest obligations.
From December 31, 2022, to December 31, 2023, the interest coverage ratio saw significant improvement, reaching a peak of 1.58. This suggests that Ford's operating income was sufficient to cover its interest payments 1.58 times, indicating a stronger financial position.
However, by March 31, 2024, the interest coverage ratio decreased to 0.60, signifying a decline in the company's ability to cover interest expenses. This could be a point of concern as a lower ratio indicates higher financial risk and potential difficulties in meeting debt obligations.
The sharp increase in the interest coverage ratio to 9.52 by December 31, 2024, is notable and could be a positive sign of Ford Motor Company's improving financial health. Overall, while there have been fluctuations in the interest coverage ratio, the recent upward trend is indicative of a better ability to handle interest payments compared to the earlier periods.
Peer comparison
Dec 31, 2024