Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Ford Motor Co., liquidity ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Current ratio | 1.20 | 1.20 | 1.20 | 1.20 | 1.16 | |
| Quick ratio | 1.01 | 1.02 | 1.03 | 1.05 | 0.99 | |
| Cash ratio | 0.85 | 0.85 | 0.91 | 0.95 | 0.90 |
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).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Ford Motor Co. current ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Ford Motor Co. quick ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Ford Motor Co. cash ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Current Ratio
Ford Motor Co., current 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) | ||||||
| Current assets | 121,481) | 116,476) | 108,996) | 116,744) | 114,047) | |
| Current liabilities | 101,531) | 96,866) | 90,727) | 97,192) | 98,132) | |
| Liquidity Ratio | ||||||
| Current ratio1 | 1.20 | 1.20 | 1.20 | 1.20 | 1.16 | |
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| General Motors Co. | 1.08 | 1.10 | 1.10 | 1.01 | 0.88 | |
| Tesla Inc. | 1.73 | 1.53 | 1.38 | 1.88 | 1.13 | |
| Current Ratio, Sector | ||||||
| Automobiles & Components | 1.21 | 1.20 | 1.18 | 1.17 | 1.04 | |
| Current Ratio, Industry | ||||||
| Consumer Discretionary | 1.18 | 1.14 | 1.24 | 1.18 | 1.08 | |
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 2023 Calculation
Current ratio = Current assets ÷ Current liabilities
= 121,481 ÷ 101,531 = 1.20
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Ford Motor Co. current ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Quick Ratio
Ford Motor Co., quick 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) | ||||||
| Cash and cash equivalents | 24,862) | 25,134) | 20,540) | 25,243) | 17,504) | |
| Marketable securities | 15,309) | 18,936) | 29,053) | 24,718) | 17,147) | |
| Ford Credit finance receivables, net of allowance for credit losses | 46,425) | 38,720) | 32,543) | 42,401) | 53,651) | |
| Trade and other receivables, less allowances | 15,601) | 15,729) | 11,370) | 9,993) | 9,237) | |
| Total quick assets | 102,197) | 98,519) | 93,506) | 102,355) | 97,539) | |
| Current liabilities | 101,531) | 96,866) | 90,727) | 97,192) | 98,132) | |
| Liquidity Ratio | ||||||
| Quick ratio1 | 1.01 | 1.02 | 1.03 | 1.05 | 0.99 | |
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| General Motors Co. | 0.83 | 0.86 | 0.84 | 0.79 | 0.67 | |
| Tesla Inc. | 1.13 | 0.94 | 1.00 | 1.49 | 0.71 | |
| Quick Ratio, Sector | ||||||
| Automobiles & Components | 0.95 | 0.94 | 0.95 | 0.98 | 0.84 | |
| Quick Ratio, Industry | ||||||
| Consumer Discretionary | 0.84 | 0.81 | 0.93 | 0.89 | 0.77 | |
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 2023 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 102,197 ÷ 101,531 = 1.01
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Ford Motor Co. quick ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Cash Ratio
Ford Motor Co., cash 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) | ||||||
| Cash and cash equivalents | 24,862) | 25,134) | 20,540) | 25,243) | 17,504) | |
| Marketable securities | 15,309) | 18,936) | 29,053) | 24,718) | 17,147) | |
| Ford Credit finance receivables, net of allowance for credit losses | 46,425) | 38,720) | 32,543) | 42,401) | 53,651) | |
| Total cash assets | 86,596) | 82,790) | 82,136) | 92,362) | 88,302) | |
| Current liabilities | 101,531) | 96,866) | 90,727) | 97,192) | 98,132) | |
| Liquidity Ratio | ||||||
| Cash ratio1 | 0.85 | 0.85 | 0.91 | 0.95 | 0.90 | |
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| General Motors Co. | 0.28 | 0.34 | 0.39 | 0.36 | 0.27 | |
| Tesla Inc. | 1.01 | 0.83 | 0.90 | 1.36 | 0.59 | |
| Cash Ratio, Sector | ||||||
| Automobiles & Components | 0.63 | 0.63 | 0.70 | 0.74 | 0.61 | |
| Cash Ratio, Industry | ||||||
| Consumer Discretionary | 0.57 | 0.55 | 0.71 | 0.70 | 0.56 | |
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 2023 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 86,596 ÷ 101,531 = 0.85
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Ford Motor Co. cash ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |