Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Ford Motor Co., profitability ratios
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).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Ford Motor Co. gross profit margin ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Ford Motor Co. operating profit margin ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Ford Motor Co. net profit margin ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Ford Motor Co. ROE deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Ford Motor Co. ROA deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
Gross Profit Margin
Ford Motor Co., gross 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) | ||||||
| Gross profit | 15,351) | 14,682) | 11,617) | 3,189) | 8,947) | |
| Company revenues excluding Ford Credit | 165,901) | 149,079) | 126,268) | 115,941) | 143,640) | |
| Profitability Ratio | ||||||
| Gross profit margin1 | 9.25% | 9.85% | 9.20% | 2.75% | 6.23% | |
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| General Motors Co. | 10.36% | 11.87% | 11.49% | 10.25% | 9.82% | |
| Tesla Inc. | 18.25% | 25.60% | 25.28% | 21.02% | 16.56% | |
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
Gross profit margin = 100 × Gross profit ÷ Company revenues excluding Ford Credit
= 100 × 15,351 ÷ 165,901 = 9.25%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Ford Motor Co. gross profit margin ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level. |
Operating Profit Margin
Ford Motor Co., operating 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) | ||||||
| Operating income (loss) | 5,458) | 6,276) | 4,523) | (4,408) | 574) | |
| Company revenues excluding Ford Credit | 165,901) | 149,079) | 126,268) | 115,941) | 143,640) | |
| Profitability Ratio | ||||||
| Operating profit margin1 | 3.29% | 4.21% | 3.58% | -3.80% | 0.40% | |
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| General Motors Co. | 5.90% | 7.16% | 8.21% | 6.10% | 4.47% | |
| Tesla Inc. | 9.19% | 16.76% | 12.12% | 6.32% | -0.28% | |
| Operating Profit Margin, Sector | ||||||
| Automobiles & Components | 5.63% | 8.08% | 6.94% | 1.65% | 2.06% | |
| Operating Profit Margin, Industry | ||||||
| Consumer Discretionary | 9.14% | 8.09% | 8.18% | 5.56% | 7.83% | |
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
Operating profit margin = 100 × Operating income (loss) ÷ Company revenues excluding Ford Credit
= 100 × 5,458 ÷ 165,901 = 3.29%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Ford Motor Co. operating profit margin ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Net Profit Margin
Ford Motor Co., net 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) | ||||||
| Net income (loss) attributable to Ford Motor Company | 4,347) | (1,981) | 17,937) | (1,279) | 47) | |
| Company revenues excluding Ford Credit | 165,901) | 149,079) | 126,268) | 115,941) | 143,640) | |
| Profitability Ratio | ||||||
| Net profit margin1 | 2.62% | -1.33% | 14.21% | -1.10% | 0.03% | |
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| General Motors Co. | 6.42% | 6.90% | 8.82% | 5.91% | 5.49% | |
| Tesla Inc. | 15.50% | 15.41% | 10.25% | 2.29% | -3.51% | |
| Net Profit Margin, Sector | ||||||
| Automobiles & Components | 7.01% | 5.48% | 11.40% | 2.29% | 2.03% | |
| Net Profit Margin, Industry | ||||||
| Consumer Discretionary | 7.82% | 4.67% | 8.37% | 4.18% | 6.13% | |
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
Net profit margin = 100 × Net income (loss) attributable to Ford Motor Company ÷ Company revenues excluding Ford Credit
= 100 × 4,347 ÷ 165,901 = 2.62%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Ford Motor Co. net profit margin ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
Return on Equity (ROE)
Ford Motor Co., ROE 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) | ||||||
| Net income (loss) attributable to Ford Motor Company | 4,347) | (1,981) | 17,937) | (1,279) | 47) | |
| Equity attributable to Ford Motor Company | 42,773) | 43,242) | 48,519) | 30,690) | 33,185) | |
| Profitability Ratio | ||||||
| ROE1 | 10.16% | -4.58% | 36.97% | -4.17% | 0.14% | |
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| General Motors Co. | 15.75% | 14.65% | 16.77% | 14.27% | 16.11% | |
| Tesla Inc. | 23.94% | 28.09% | 18.28% | 3.24% | -13.03% | |
| ROE, Sector | ||||||
| Automobiles & Components | 17.37% | 13.17% | 24.18% | 5.99% | 7.25% | |
| ROE, Industry | ||||||
| Consumer Discretionary | 30.04% | 19.34% | 30.06% | 18.33% | 31.35% | |
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
ROE = 100 × Net income (loss) attributable to Ford Motor Company ÷ Equity attributable to Ford Motor Company
= 100 × 4,347 ÷ 42,773 = 10.16%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Ford Motor Co. ROE deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
Return on Assets (ROA)
Ford Motor Co., ROA 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) | ||||||
| Net income (loss) attributable to Ford Motor Company | 4,347) | (1,981) | 17,937) | (1,279) | 47) | |
| Total assets | 273,310) | 255,884) | 257,035) | 267,261) | 258,537) | |
| Profitability Ratio | ||||||
| ROA1 | 1.59% | -0.77% | 6.98% | -0.48% | 0.02% | |
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| General Motors Co. | 3.71% | 3.76% | 4.09% | 2.73% | 2.95% | |
| Tesla Inc. | 14.07% | 15.25% | 8.88% | 1.38% | -2.51% | |
| ROA, Sector | ||||||
| Automobiles & Components | 4.51% | 3.41% | 5.94% | 1.06% | 1.14% | |
| ROA, Industry | ||||||
| Consumer Discretionary | 7.44% | 4.36% | 7.07% | 3.39% | 5.64% | |
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
ROA = 100 × Net income (loss) attributable to Ford Motor Company ÷ Total assets
= 100 × 4,347 ÷ 273,310 = 1.59%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Ford Motor Co. ROA deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |