Ford Motor Company (F)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 | 0.01 | 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 | 0.01 | 0.00 | 0.00 | 0.00 | 0.01 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 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 | 7.79 | 7.30 | 7.26 | 7.23 |
The solvency ratios of Ford Motor Co. provide insights into the company's ability to meet its long-term financial obligations and manage its debt levels.
The debt-to-assets ratio has been relatively stable around 0.54 to 0.55 in the recent quarters, indicating that Ford relies on debt to finance a significant portion of its assets. This implies that more than half of the company's assets are funded through debt.
The debt-to-capital ratio has also shown consistency at around 0.76 to 0.78, reflecting that a significant portion of Ford's capital structure comprises debt. This ratio indicates the extent to which debt is used to finance the company's operations compared to equity.
The debt-to-equity ratio has exhibited a slight increase over the quarters, ranging from 3.05 to 3.49. This suggests that Ford's debt levels have been rising in relation to its equity, which may signal higher financial risk and reliance on debt financing.
The financial leverage ratio has shown an increasing trend, ranging from 5.56 to 6.39. This indicates that Ford has been utilizing debt to amplify returns for shareholders, but also implies higher financial risk due to the increased reliance on leverage.
Overall, the solvency ratios of Ford Motor Co. suggest that the company has a significant level of debt in its capital structure, with a stable but slightly increasing trend over the quarters. This may indicate the need for careful monitoring of debt levels to ensure the company's long-term financial stability and ability to meet its obligations.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
Ford Motor Co.'s interest coverage ratio has shown some variability over the past eight quarters. The trend indicates an improvement in the company's ability to cover its interest expenses from its earnings. In Q3 2023, the interest coverage ratio was at its highest point of 7.06, suggesting that Ford generated earnings more than seven times those needed to cover its interest payments for that quarter. This indicates a strong ability to meet its interest obligations from operating profits.
Overall, the interest coverage ratios for the recent quarters have been above 4, which is generally considered a healthy sign and indicates that Ford has sufficient earnings to cover its interest expenses. However, it is essential to note the fluctuations in the ratio, with some quarters showing lower coverage compared to others. This variability may reflect changes in Ford's financial performance or economic conditions.
It is also worth noting that the interest coverage ratio in Q1 2022 was significantly below the recent quarters, at 2.74. This suggests that Ford had relatively lower earnings to cover its interest payments during that period. Investors and stakeholders should monitor Ford's interest coverage ratio over time to assess its financial health and ability to meet its debt obligations.