Ford Motor Company (F)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.01 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.01 | 0.00 | 0.00 | 0.00 |
| 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 |
The solvency ratios for Ford Motor Company indicate a strong financial position regarding its ability to meet its long-term obligations. The Debt-to-assets ratio has consistently been at 0.00, implying the company's assets fully cover its debts, providing a solid cushion of safety for creditors.
Similarly, both the Debt-to-capital ratio and Debt-to-equity ratio have remained low and stable, with figures around 0.00 to 0.01 for the Debt-to-capital ratio and Debt-to-equity ratio. This suggests that Ford has been prudent in managing its debt levels relative to its capital and equity, reducing financial risk and improving its financial stability.
The Financial leverage ratio has shown a decreasing trend over the years, moving from 8.91 in March 2020 to 6.36 in December 2024. This decline indicates that Ford has been reducing its reliance on debt financing in favor of equity, which enhances the company's long-term financial health and potentially reduces its financial risks.
Overall, the solvency ratios of Ford Motor Company demonstrate a sound financial position, with a strong ability to meet its financial obligations and a decreasing dependence on debt financing, which bodes well for the company's stability and sustainability in the long run.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 | — | — |
The interest coverage ratio for Ford Motor Company has experienced fluctuations over the past few years. It was negative in 2020, indicating that the company's operating income was insufficient to cover its interest expenses during that period. Subsequently, the ratio improved gradually, moving into positive territory in 2021 and continuing to increase through 2024. This suggests that Ford's operating income has been more than sufficient to cover its interest expenses in recent quarters. The significant increase in the interest coverage ratio to 9.52 as of December 31, 2024, indicates a strong ability to meet its interest obligations from its operating profits. However, it is essential to continue monitoring this ratio to ensure the company's financial health and ability to service its debt obligations in the long term.