Ford Motor Co. (NYSE:F)

Intangible assets, net

The net value of intangible assets shows a consistent declining trend from 144 million US dollars in 2020 to 69 million US dollars in 2024. This represents a decrease of more than 50% over the five-year period, indicating possible amortization, impairment, or divestitures reducing the intangible asset base.

Goodwill

Goodwill experienced significant fluctuations throughout the period. Starting at 258 million US dollars in 2020, it sharply increased to 619 million in 2021, followed by a slight decline to 603 million in 2022. It rose again to 683 million in 2023 before decreasing modestly to 658 million in 2024. These changes may reflect acquisitions, impairments, or adjustments in business combinations.

Net intangible assets and goodwill

The combined net intangible assets and goodwill also show variability, rising from 402 million US dollars in 2020 to a peak of 763 million in 2023, before dropping to 727 million in 2024. The overall increase over the five years suggests growth in acquired assets or revaluations despite the decrease in net intangible assets alone.

Total Assets

The reported total assets exhibit a slight decline from 267,261 million US dollars in 2020 to 255,884 million US dollars in 2022. However, from 2023 onwards, there is a rebound with assets increasing to 273,310 million in 2023 and further to 285,196 million in 2024. The adjusted total assets follow a very similar pattern, showing minimal differences compared to the reported figures. This indicates that the adjustment for goodwill has a negligible impact on the asset base over the period.

Equity Attributable to Ford Motor Company

The reported equity attributable to Ford demonstrates a significant increase from 30,690 million US dollars in 2020 to 48,519 million in 2021, representing a strong growth phase. However, the equity value declines to 43,242 million in 2022 and remains relatively stable in 2023 around 42,773 million. There is a moderate recovery in 2024 with the equity rising again to 44,835 million. The adjusted equity figures mirror these trends closely, with only slight reductions compared to the reported values, indicating that goodwill adjustments slightly reduce the equity figures but do not alter the overall trend profile substantially.

General Observations

Overall, the period shows an initial contraction in total assets followed by a recovery surpassing the initial 2020 level by 2024. Equity shows more volatility with a pronounced peak in 2021, followed by a decrease and then moderate recovery in the last two years. The closeness of reported and adjusted figures suggests that goodwill-related adjustments have minimal effect on the financial position trends over this timeframe.

The financial data indicates several notable trends over the five-year period from 2020 to 2024. The total asset turnover ratio, both reported and adjusted for goodwill, shows a consistent increase from 0.43 in 2020 to 0.61 in 2023 and remains steady at 0.61 in 2024. This upward trend suggests an improvement in asset utilization efficiency, allowing the company to generate more sales per unit of asset over time.

Financial leverage, as measured by both reported and adjusted ratios, exhibits a significant decline from 8.71 (reported) and 8.77 (adjusted) in 2020 to approximately 5.3 in 2021. Following this drop, leverage ratios rise gradually to around 6.4 by 2024. This pattern shows an initial reduction in reliance on debt or other liabilities, followed by a modest re-leveraging in subsequent years.

Return on equity (ROE) figures reveal considerable volatility throughout the period. Both reported and adjusted ROE are negative in 2020 (-4.17% and -4.2%, respectively) and again in 2022 (-4.58% and -4.65%), with a substantial positive spike in 2021 at approximately 37%. From 2022 onward, ROE recovers to positive figures, reaching just over 13% by 2024. This fluctuation indicates periods of loss or low profitability interspersed with strong performance, reflecting variability in profit generation relative to shareholders' equity.

Return on assets (ROA) trends align closely with those of ROE, showing negative returns in 2020 and 2022 (-0.48% / -0.48% and -0.77% / -0.78%, respectively for reported and adjusted), with positive improvement in other years. ROA increases from 6.98% in 2021 to 2.06% in 2024, indicating an overall enhancement in the company’s ability to generate profit from its asset base, although the upward trend is more moderate compared to ROE.

Overall, the data reflects a company improving its asset turnover and generating increasing returns after a volatile period, while managing changes in financial leverage. The adjustments for goodwill do not materially affect these financial ratios, as reported and adjusted figures are closely aligned across all metrics.

Total Assets

The reported total assets exhibited a slight decline from 267,261 million US dollars at the end of 2020 to 255,884 million US dollars by the end of 2022. Subsequently, the assets increased consistently, reaching 285,196 million US dollars by the end of 2024. The adjusted total assets followed a similar pattern, decreasing modestly from 267,003 million in 2020 to 255,281 million in 2022, then rising steadily to 284,538 million by 2024. This trend indicates an initial contraction in asset base during the initial years, followed by a recovery and growth phase in the latter years.

Total Asset Turnover

The reported total asset turnover ratio showed an improving trend throughout the observed period. Starting from 0.43 in 2020, it increased progressively to 0.49 in 2021, 0.58 in 2022, and stabilized at 0.61 during 2023 and 2024. The adjusted total asset turnover mirrored this development exactly. The consistent increase in asset turnover implies enhanced efficiency in using assets to generate sales or revenue over time, with a notable improvement phase between 2020 and 2022, after which efficiency gains leveled off.

Total Assets

The total assets show a generally stable trend over the observed period with a slight decline from 2020 to 2022, followed by a gradual increase thereafter. Reported total assets decreased from 267,261 million US dollars in 2020 to a low of 255,884 million in 2022, before rising steadily to 285,196 million by 2024. The adjusted total assets exhibit a parallel pattern with similar values, declining from 267,003 million in 2020 to 255,281 million in 2022, then ascending to 284,538 million in 2024.

Equity Attributable to the Company

Equity attributable to the company presents a more volatile pattern compared to total assets. Reported equity increases significantly from 30,690 million in 2020 to a peak of 48,519 million in 2021, followed by a decline to 42,242 million in 2022 and a slight further decrease in 2023. By 2024, equity recovers moderately to 44,835 million. Adjusted equity closely mirrors the reported figures, with a peak in 2021 at 47,900 million and subsequent declines in the following years, then a modest increase to 44,177 million in 2024.

Financial Leverage

Financial leverage ratios demonstrate a notable reduction from 2020 to 2021 and then a gradual increase thereafter. The reported financial leverage drops significantly from 8.71 in 2020 to 5.3 in 2021, indicating a reduction in leverage or an increase in equity relative to debt. From 2021 onward, this ratio rises yearly to reach 6.36 in 2024, suggesting a gradual return to higher leverage. The adjusted financial leverage follows the same trend, starting at 8.77 in 2020, decreasing to 5.35 in 2021, and increasing to 6.44 by 2024.

Overall Insights

The data indicates a period of deleveraging and strengthening equity position in 2021, followed by a modest rollback towards higher leverage levels in subsequent years. The initial improvements in equity and reductions in leverage could be associated with strategic financial management or changes in operational performance. The increase in total assets towards the end of the period points to growth or asset accumulation, while equity fluctuations suggest some underlying volatility in profitability or capital structure management. The consistent alignment of reported and adjusted figures indicates that goodwill adjustments have a minimal impact on these core financial trends.

The equity attributable to the company exhibits notable fluctuations over the observed periods. Reported equity increased significantly from 30,690 million US dollars in 2020 to 48,519 million in 2021, followed by a decline to 43,242 million in 2022 and a slight decrease in 2023 to 42,773 million. A moderate rebound occurred in 2024, reaching 44,835 million. The adjusted equity mirrors this pattern closely, indicating consistent adjustments primarily related to goodwill.

Return on Equity (ROE) shows considerable volatility throughout the timeframe. The reported ROE was negative at -4.17% in 2020, then surged to a high of 36.97% in 2021, signaling a period of robust profitability or improved efficiency. However, the ROE plummeted back to a negative -4.58% in 2022, reflecting a significant downturn or operational challenges during that year. Recovery followed with positive returns of 10.16% in 2023 and an increase to 13.11% in 2024.

The adjusted ROE follows a similar trajectory as the reported ROE, with only marginal differences. Starting at -4.2% in 2020, it peaks at 37.45% in 2021, declines sharply to -4.65% in 2022, then recovers steadily to 10.33% in 2023 and 13.31% in 2024. The close alignment between reported and adjusted figures suggests that the adjustments, mainly related to goodwill, have minimal impact on the overall profitability trends.

Equity Trends

An initial sharp increase in equity from 2020 to 2021, followed by a decrease in 2022 and slight fluctuations in the following years.

Profitability (ROE)

Large volatility with a peak in 2021, a significant downturn in 2022, and a gradual recovery through 2023 and 2024.

Goodwill Adjustments

Minimal effect on equity and ROE trends, as indicated by the close proximity between reported and adjusted values.

The analysis of the financial data reveals several notable trends in the asset base and profitability measures over the five-year period.

Total Assets

Reported total assets exhibited a slight decline between 2020 and 2022, decreasing from approximately $267.3 billion to $255.9 billion. However, starting in 2023, reported assets increased notably, reaching about $285.2 billion by the end of 2024, thus surpassing the initial 2020 level. This upward trajectory in the latter years indicates asset growth potentially linked to investments or acquisitions.

Adjusted total assets, which presumably exclude goodwill, closely mirror the reported figures, suggesting that goodwill has a relatively minor impact on the total asset value. The adjusted assets decreased from roughly $267.0 billion in 2020 to $255.3 billion in 2022, then increased steadily to approximately $284.5 billion in 2024.

Return on Assets (ROA)

The reported ROA displayed significant volatility throughout the period. Starting at a negative level of -0.48% in 2020, there was a substantial improvement to 6.98% in 2021, indicating a strong recovery or profitability gain. Nevertheless, ROA deteriorated sharply in 2022, returning to a negative figure of -0.77%. This was followed by moderate improvements in 2023 and 2024, reaching positive ROA levels of 1.59% and 2.06%, respectively.

The adjusted ROA follows an almost identical pattern, with only minimal differences in decimal points, confirming that the exclusion of goodwill does not materially affect the profitability ratio. The alignment suggests that intangible assets such as goodwill do not significantly distort the profitability measure based on asset utilization.

In summary, the data illustrates that the asset base experienced a contraction followed by a recovery and expansion phase from 2020 through 2024. Concurrently, profitability measured by ROA was unstable, with a notable peak in 2021, a downturn in 2022, and a gradual recovery thereafter. The consistency between reported and adjusted figures indicates that goodwill has a limited effect on the total assets and return on assets calculations.