EVA is registered trademark of Stern Stewart.

Economic value added or economic profit is the difference between revenues and costs,where costs include not only expenses, but also cost of capital.

Economic Profit
Net Operating Profit after Taxes (NOPAT)
Cash Operating Taxes
Invested Capital
Cost of Capital
Economic Spread Ratio
Economic Profit Margin

Ford Motor Co., economic profit calculation

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net operating profit after taxes (NOPAT)¹	3,005)	2,786)	11,380)	(428)	(1,062)
Cost of capital²	7.57%	7.37%	7.62%	5.96%	5.30%
Invested capital³	173,985)	164,218)	160,105)	170,559)	173,780)

Economic profit⁴	(10,161)	(9,315)	(827)	(10,591)	(10,281)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

¹ NOPAT. See details »

² Cost of capital. See details »

³ Invested capital. See details »

⁴ 2023 Calculation
Economic profit = NOPAT – Cost of capital × Invested capital
= 3,005 – 7.57% × 173,985 = -10,161

Download chart

Item	Description	The company
Economic profit	Economic profit is a measure of corporate performance computed by taking the spread between the return on invested capital and the cost of capital, and multiplying by the invested capital.	Ford Motor Co. economic profit decreased from 2021 to 2022 and from 2022 to 2023.

Ford Motor Co., NOPAT calculation

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income (loss) attributable to Ford Motor Company	4,347)	(1,981)	17,937)	(1,279)	47)
Deferred income tax expense (benefit)¹	(1,601)	(1,836)	(856)	(326)	(1,394)
Increase (decrease) in allowances for doubtful receivables²	(24)	46)	(10)	8)	(45)
Increase (decrease) in deferred revenue³	279)	255)	312)	438)	202)
Increase (decrease) in equity equivalents⁴	(1,346)	(1,535)	(554)	120)	(1,237)
Interest expense on Company debt excluding Ford Credit	1,302)	1,259)	1,803)	1,649)	1,020)
Interest expense, operating lease liability⁵	88)	56)	46)	50)	48)
Adjusted interest expense on Company debt excluding Ford Credit	1,390)	1,315)	1,849)	1,699)	1,068)
Tax benefit of interest expense on Company debt excluding Ford Credit⁶	(292)	(276)	(388)	(357)	(224)
Adjusted interest expense on Company debt excluding Ford Credit, after taxes⁷	1,098)	1,039)	1,461)	1,342)	844)
(Gain) loss on marketable securities	205)	7,518)	(9,159)	(325)	(144)
Investment-related interest income	(1,567)	(639)	(254)	(452)	(809)
Investment income, before taxes	(1,362)	6,879)	(9,413)	(777)	(953)
Tax expense (benefit) of investment income⁸	286)	(1,445)	1,977)	163)	200)
Investment income, after taxes⁹	(1,076)	5,434)	(7,436)	(614)	(753)
Net income (loss) attributable to noncontrolling interest	(18)	(171)	(27)	3)	37)
Net operating profit after taxes (NOPAT)	3,005)	2,786)	11,380)	(428)	(1,062)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

¹ Elimination of deferred tax expense. See details »

² Addition of increase (decrease) in allowances for doubtful receivables.

³ Addition of increase (decrease) in deferred revenue.

⁴ Addition of increase (decrease) in equity equivalents to net income (loss) attributable to Ford Motor Company.

⁵ 2023 Calculation
Interest expense on capitalized operating leases = Operating lease liability × Discount rate
= 1,876 × 4.70% = 88

⁶ 2023 Calculation
Tax benefit of interest expense on Company debt excluding Ford Credit = Adjusted interest expense on Company debt excluding Ford Credit × Statutory income tax rate
= 1,390 × 21.00% = 292

⁷ Addition of after taxes interest expense to net income (loss) attributable to Ford Motor Company.

⁸ 2023 Calculation
Tax expense (benefit) of investment income = Investment income, before tax × Statutory income tax rate
= 1,362 × 21.00% = 286

⁹ Elimination of after taxes investment income.

Download chart

Item	Description	The company
NOPAT	Net operating profit after taxes is income from operations, but after removement of taxes calculated on cash basis that are relevant to operating income.	Ford Motor Co. NOPAT decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.

Ford Motor Co., cash operating taxes calculation

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Provision for (benefit from) income taxes	(362)	(864)	(130)	160)	(724)
Less: Deferred income tax expense (benefit)	(1,601)	(1,836)	(856)	(326)	(1,394)
Add: Tax savings from interest expense on Company debt excluding Ford Credit	292)	276)	388)	357)	224)
Less: Tax imposed on investment income	286)	(1,445)	1,977)	163)	200)
Cash operating taxes	1,245)	2,693)	(862)	680)	694)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Download chart

Item	Description	The company
Cash operating taxes	Cash operating taxes are estimated by adjusting income tax expense for changes in deferred taxes and tax benefit from the interest deduction.	Ford Motor Co. cash operating taxes increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.

Ford Motor Co., invested capital calculation (financing approach)

US$ in millions

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Debt payable within one year	49,669)	50,164)	49,692)	51,343)	53,946)
Long-term debt payable after one year	99,562)	88,805)	88,400)	110,341)	101,361)
Operating lease liability¹	1,876)	1,505)	1,393)	1,314)	1,414)
Total reported debt & leases	151,107)	140,474)	139,485)	162,998)	156,721)
Equity attributable to Ford Motor Company	42,773)	43,242)	48,519)	30,690)	33,185)
Net deferred tax (assets) liabilities²	(15,980)	(14,003)	(12,215)	(11,885)	(11,373)
Allowances for doubtful receivables³	69)	93)	47)	57)	49)
Deferred revenue⁴	7,566)	7,287)	7,032)	6,720)	6,282)
Equity equivalents⁵	(8,345)	(6,623)	(5,136)	(5,108)	(5,042)
Accumulated other comprehensive (income) loss, net of tax⁶	9,042)	9,339)	8,339)	8,294)	7,728)
Equity attributable to noncontrolling interests	25)	(75)	103)	121)	45)
Adjusted equity attributable to Ford Motor Company	43,495)	45,883)	51,825)	33,997)	35,916)
Construction in progress⁷	(5,308)	(3,203)	(2,152)	(1,718)	(1,710)
Marketable securities⁸	(15,309)	(18,936)	(29,053)	(24,718)	(17,147)
Invested capital	173,985)	164,218)	160,105)	170,559)	173,780)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

¹ Addition of capitalized operating leases.

² Elimination of deferred taxes from assets and liabilities. See details »

³ Addition of allowance for doubtful accounts receivable.

⁴ Addition of deferred revenue.

⁵ Addition of equity equivalents to equity attributable to Ford Motor Company.

⁶ Removal of accumulated other comprehensive income.

⁷ Subtraction of construction in progress.

⁸ Subtraction of marketable securities.

Download chart

Item	Description	The company
Invested capital	Capital is an approximation of the economic book value of all cash invested in going-concern business activities.	Ford Motor Co. invested capital increased from 2021 to 2022 and from 2022 to 2023.

Ford Motor Co., cost of capital calculations

Dec 31, 2023

	Capital (fair value)¹	Weights					Cost of capital
Equity²	50,863)	50,863)	÷	203,047)	=	0.25	0.25	×	18.66%	=	4.67%
Debt³	150,308)	150,308)	÷	203,047)	=	0.74	0.74	×	4.89% × (1 – 21.00%)	=	2.86%
Operating lease liability⁴	1,876)	1,876)	÷	203,047)	=	0.01	0.01	×	4.70% × (1 – 21.00%)	=	0.03%
Total:	203,047)					1.00					7.57%

Based on: 10-K (reporting date: 2023-12-31).

¹ US$ in millions

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

Dec 31, 2022

	Capital (fair value)¹	Weights					Cost of capital
Equity²	52,737)	52,737)	÷	190,013)	=	0.28	0.28	×	18.66%	=	5.18%
Debt³	135,771)	135,771)	÷	190,013)	=	0.71	0.71	×	3.84% × (1 – 21.00%)	=	2.17%
Operating lease liability⁴	1,505)	1,505)	÷	190,013)	=	0.01	0.01	×	3.70% × (1 – 21.00%)	=	0.02%
Total:	190,013)					1.00					7.37%

Based on: 10-K (reporting date: 2022-12-31).

¹ US$ in millions

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

Dec 31, 2021

	Capital (fair value)¹	Weights					Cost of capital
Equity²	71,916)	71,916)	÷	217,557)	=	0.33	0.33	×	18.66%	=	6.17%
Debt³	144,248)	144,248)	÷	217,557)	=	0.66	0.66	×	2.75% × (1 – 21.00%)	=	1.44%
Operating lease liability⁴	1,393)	1,393)	÷	217,557)	=	0.01	0.01	×	3.30% × (1 – 21.00%)	=	0.02%
Total:	217,557)					1.00					7.62%

Based on: 10-K (reporting date: 2021-12-31).

¹ US$ in millions

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

Dec 31, 2020

	Capital (fair value)¹	Weights					Cost of capital
Equity²	45,795)	45,795)	÷	214,699)	=	0.21	0.21	×	18.66%	=	3.98%
Debt³	167,590)	167,590)	÷	214,699)	=	0.78	0.78	×	3.18% × (1 – 21.00%)	=	1.96%
Operating lease liability⁴	1,314)	1,314)	÷	214,699)	=	0.01	0.01	×	3.80% × (1 – 21.00%)	=	0.02%
Total:	214,699)					1.00					5.96%

Based on: 10-K (reporting date: 2020-12-31).

¹ US$ in millions

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

Dec 31, 2019

	Capital (fair value)¹	Weights					Cost of capital
Equity²	32,949)	32,949)	÷	192,367)	=	0.17	0.17	×	18.66%	=	3.20%
Debt³	158,004)	158,004)	÷	192,367)	=	0.82	0.82	×	3.22% × (1 – 21.00%)	=	2.09%
Operating lease liability⁴	1,414)	1,414)	÷	192,367)	=	0.01	0.01	×	3.40% × (1 – 21.00%)	=	0.02%
Total:	192,367)					1.00					5.30%

Based on: 10-K (reporting date: 2019-12-31).

¹ US$ in millions

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

Ford Motor Co., economic spread ratio calculation, comparison to benchmarks

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Selected Financial Data (US$ in millions)
Economic profit¹	(10,161)	(9,315)	(827)	(10,591)	(10,281)
Invested capital²	173,985)	164,218)	160,105)	170,559)	173,780)
Performance Ratio
Economic spread ratio³	-5.84%	-5.67%	-0.52%	-6.21%	-5.92%
Benchmarks
Economic Spread Ratio, Competitors⁴
General Motors Co.	-1.07%	-1.83%	0.00%	-3.23%	-3.23%
Tesla Inc.	-8.13%	4.40%	-7.63%	-19.09%	-20.09%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

¹ Economic profit. See details »

² Invested capital. See details »

³ 2023 Calculation
Economic spread ratio = 100 × Economic profit ÷ Invested capital
= 100 × -10,161 ÷ 173,985 = -5.84%

⁴ Click competitor name to see calculations.

Download chart

Performance ratio	Description	The company
Economic spread ratio	The ratio of economic profit to invested capital, also equal to the difference between return on invested capital (ROIC) and cost of capital.	Ford Motor Co. economic spread ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Ford Motor Co., economic profit margin calculation, comparison to benchmarks

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Selected Financial Data (US$ in millions)
Economic profit¹	(10,161)	(9,315)	(827)	(10,591)	(10,281)

Company revenues excluding Ford Credit	165,901)	149,079)	126,268)	115,941)	143,640)
Add: Increase (decrease) in deferred revenue	279)	255)	312)	438)	202)
Adjusted company revenues excluding Ford Credit	166,180)	149,334)	126,580)	116,379)	143,842)
Performance Ratio
Economic profit margin²	-6.11%	-6.24%	-0.65%	-9.10%	-7.15%
Benchmarks
Economic Profit Margin, Competitors³
General Motors Co.	-1.22%	-2.18%	0.00%	-4.55%	-3.84%
Tesla Inc.	-5.39%	2.65%	-5.63%	-23.46%	-20.22%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

¹ Economic profit. See details »

² 2023 Calculation
Economic profit margin = 100 × Economic profit ÷ Adjusted company revenues excluding Ford Credit
= 100 × -10,161 ÷ 166,180 = -6.11%

³ Click competitor name to see calculations.

Download chart

Performance ratio	Description	The company
Economic profit margin	The ratio of economic profit to sales. It is the company profit margin covering income efficiency and asset management. Economic profit margin is not biased in favor of capital-intensive business models, because any added capital is a cost to the economic profit margin.	Ford Motor Co. economic profit margin deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.

Ford Motor Co. (NYSE:F)

Economic Value Added (EVA)

Economic Profit

Net Operating Profit after Taxes (NOPAT)

Cash Operating Taxes

Invested Capital

Cost of Capital

Economic Spread Ratio

Economic Profit Margin