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Ford Motor Co. pages available for free this week:
- Analysis of Geographic Areas
- Common Stock Valuation Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Price to FCFE (P/FCFE)
- Present Value of Free Cash Flow to Equity (FCFE)
- Operating Profit Margin since 2005
- Return on Equity (ROE) since 2005
- Price to Operating Profit (P/OP) since 2005
- Price to Sales (P/S) since 2005
- Aggregate Accruals
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Adjustment to Net Income (Loss): Mark to Market Available-for-sale Securities
Ford Motor Co., adjustment to net income (loss) attributable to Ford Motor Company
US$ in millions
Based on: 10-K (reporting date: 2024-12-31), 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).
- Reported Net Income (Loss) Attributable to Ford Motor Company
- The reported net income experienced significant volatility throughout the analyzed period. In 2020, the company recorded a substantial loss of $1,279 million. This was followed by a remarkable turnaround in 2021, with the net income rising sharply to a positive $17,937 million. However, in 2022, the company once again faced a loss of $1,981 million, indicating considerable instability in earnings. The subsequent years, 2023 and 2024, showed recovery and growth with net income reaching $4,347 million and $5,879 million respectively, suggesting an overall improving trend towards profitability in the most recent years.
- Adjusted Net Income (Loss) Attributable to Ford Motor Company
- The adjusted net income also reflected considerable fluctuations similar to reported figures but with slightly less extreme values. In 2020, there was a loss of $1,194 million, closely aligned with reported net income loss. The adjusted figure for 2021 showed strong profitability at $17,762 million. In 2022, the adjusted net income loss deepened to $2,404 million, a larger setback than the reported loss for the same year. In 2023 and 2024, the adjusted net income rebounded to $4,619 million and $5,999 million respectively, maintaining a positive growth trajectory similar to reported results, with adjusted figures generally reflecting a slightly more conservative but consistent view of earnings performance.
Adjusted Profitability Ratios: Mark to Market Available-for-sale Securities (Summary)
Ford Motor Co., adjusted profitability ratios
Based on: 10-K (reporting date: 2024-12-31), 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).
- Net Profit Margin Trends
- The reported net profit margin exhibits significant fluctuations over the five-year period. It started with a negative margin of -1.1% in 2020, surged to a peak of 14.21% in 2021, then sharply declined to -1.33% in 2022. From 2022 onwards, the margin gradually improved, reaching 3.4% by 2024. The adjusted net profit margin follows a similar trend, with values slightly lower but closely aligned with the reported figures, indicating consistent adjustments without major impact on overall trends.
- Return on Equity (ROE) Behavior
- Reported ROE mirrors the net profit margin pattern but with more pronounced swings. It begins in negative territory at -4.17% in 2020, jumps dramatically to 36.97% in 2021, then turns negative again at -4.58% in 2022. Following 2022, there is a recovery phase with ROE rising steadily to 13.11% in 2024. Adjusted ROE values are slightly more conservative but replicate the same trend, indicating that adjustments reduce volatility somewhat but maintain the overall performance pattern.
- Return on Assets (ROA) Development
- ROA, both reported and adjusted, shows a less volatile but still notable trend. Beginning with negative values near -0.5% in 2020, both metrics reach their highest point in 2021 at approximately 7%. A decline follows in 2022 with values dropping below zero again, before a gradual improvement through to 2024, ending around 2%. The adjustment factor causes minimal differences, suggesting asset efficiency remains relatively stable despite fluctuations in profitability and equity returns.
- General Observations
- The financial performance over the period is marked by high variability, especially in 2021, when profitability and returns peaked sharply. The subsequent year brought a significant downturn, followed by a moderate recovery phase. The adjustments to financial metrics consistently reduce extreme values slightly but do not alter the overall direction of the trends. This pattern indicates sensitivity to external or internal factors affecting profitability and efficiency, with possible operational or market conditions driving considerable year-to-year changes.
Ford Motor Co., Profitability Ratios: Reported vs. Adjusted
Adjusted Net Profit Margin
Based on: 10-K (reporting date: 2024-12-31), 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).
2024 Calculations
1 Net profit margin = 100 × Net income (loss) attributable to Ford Motor Company ÷ Company revenues excluding Ford Credit
= 100 × ÷ =
2 Adjusted net profit margin = 100 × Adjusted net income (loss) attributable to Ford Motor Company ÷ Company revenues excluding Ford Credit
= 100 × ÷ =
- Net Income Trends
- The net income attributable to the company exhibits significant volatility over the five-year period. Initially, the company experienced a substantial loss of approximately 1.28 billion USD in 2020. However, there was a marked recovery in 2021, with net income rising sharply to about 17.94 billion USD. This positive trend reversed in 2022, with a return to losses near 1.98 billion USD. Following this downturn, the net income improved once more in subsequent years, reaching around 4.35 billion USD in 2023 and further increasing to about 5.88 billion USD in 2024.
- Adjusted Net Income Trends
- The adjusted net income follows a similar yet slightly more moderated pattern. The company reported a loss of approximately 1.19 billion USD in 2020, improved to a peak of 17.76 billion USD in 2021, then declined to a loss near 2.40 billion USD in 2022. After that, it recovered to approximately 4.62 billion USD in 2023 and increased further to nearly 6.00 billion USD in 2024. The adjustments seem to result in slightly lower extremes compared to the reported figures.
- Net Profit Margin Patterns
- The reported net profit margin mirrors the income figures, illustrating considerable fluctuations. It was negative at approximately -1.1% in 2020, improved dramatically to 14.21% in 2021, declined again to -1.33% in 2022, followed by a recovery to 2.62% in 2023 and a further increase to 3.4% in 2024. This indicates periods of both loss and profitability, with significant recovery after setbacks.
- Adjusted Net Profit Margin Patterns
- The adjusted net profit margin displays a parallel trend to the reported margin, but with slightly more conservative values. It was -1.03% in 2020, increased sharply to 14.07% in 2021, dropped more noticeably to -1.61% in 2022, rebounded to 2.78% in 2023, and rose further to 3.47% in 2024. The adjustment process appears to soften the margin peaks and troughs but maintains the overall trend profile.
- Overall Financial Performance Analysis
- The company has experienced pronounced earnings volatility, with a peak performance in 2021 interrupted by a return to losses in 2022. Subsequent years show a recovery trajectory, evidenced by improving net income and profit margins. Despite fluctuations, the adjusted metrics tend to moderate the extremes, providing a somewhat steadier portrayal of underlying profitability. The data indicates resilience and an ability to rebound following adverse periods, suggesting operational or market factors contributing to these oscillations.
Adjusted Return on Equity (ROE)
Based on: 10-K (reporting date: 2024-12-31), 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).
2024 Calculations
1 ROE = 100 × Net income (loss) attributable to Ford Motor Company ÷ Equity attributable to Ford Motor Company
= 100 × ÷ =
2 Adjusted ROE = 100 × Adjusted net income (loss) attributable to Ford Motor Company ÷ Equity attributable to Ford Motor Company
= 100 × ÷ =
- Net Income Trends
- The reported net income attributable to the company exhibited significant volatility over the observed five-year period. In 2020, the company experienced a notable loss of approximately 1.28 billion US dollars. This was followed by a substantial recovery in 2021, with net income rising sharply to nearly 18 billion US dollars. However, this positive trend did not sustain, as 2022 showed a reversal with a loss of approximately 2 billion US dollars. The company then returned to profitability in 2023 and 2024, with net income increasing to 4.35 billion and 5.88 billion US dollars respectively.
- The adjusted net income figures, which presumably account for investment adjustments or one-time items, closely mirror the reported figures in terms of trend and magnitude. Losses in 2020 and 2022 are somewhat mitigated but still significant, with similar peaks in profitability in 2021 and subsequent recoveries in 2023 and 2024. This consistency suggests that the adjustments did not drastically alter the overall financial performance depiction.
- Return on Equity (ROE) Trends
- The reported ROE demonstrates a pattern consistent with net income fluctuations. The company incurred negative returns in 2020 (-4.17%) and 2022 (-4.58%), indicating periods of loss relative to shareholder equity. In contrast, 2021 marked a strong positive return on equity of nearly 37%, the highest in the observed intervals. The subsequent years, 2023 and 2024, showed moderate improvements with ROE values at 10.16% and 13.11% respectively, indicating a return to profitability and value creation for shareholders, albeit at levels well below the peak of 2021.
- The adjusted ROE values follow the same trajectory, reflecting a slightly lower negative return in 2020 (-3.89%) and a deeper negative in 2022 (-5.56%). The positive spike in 2021 is marginally less pronounced at 36.61%, but the improving trend through 2023 and 2024 continues with adjusted ROEs of 10.80% and 13.38%. This suggests that while investment adjustments slightly affect the absolute ROE figures, they do not materially change the overall financial return pattern.
- Overall Observations
- The data reveals a company experiencing high volatility in profitability and returns on equity during the five-year period, with a sharp recovery following losses but unable to maintain peak performance levels beyond 2021. The significant fluctuations imply sensitivity to market conditions or internal operational challenges during this timeframe. The consistency between reported and adjusted financial measures suggests that the adjustments made were not substantial enough to alter the interpretation of the company’s financial health significantly.
- Most recent data points (2023 and 2024) indicate positive momentum, with both net income and ROE improving, suggesting steady recovery and enhanced shareholder value creation after the earlier setbacks. However, the performance remains below the 2021 peak, highlighting potential areas for stability and growth improvement.
Adjusted Return on Assets (ROA)
Based on: 10-K (reporting date: 2024-12-31), 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).
2024 Calculations
1 ROA = 100 × Net income (loss) attributable to Ford Motor Company ÷ Total assets
= 100 × ÷ =
2 Adjusted ROA = 100 × Adjusted net income (loss) attributable to Ford Motor Company ÷ Total assets
= 100 × ÷ =
- Net Income (Loss) Attributable to Ford Motor Company
- There is notable volatility in both reported and adjusted net income figures over the observed period. The company experienced a significant loss in 2020, with reported and adjusted losses of approximately -1,279 million and -1,194 million US dollars, respectively. In 2021, these figures sharply transitioned to substantial profits, reaching 17,937 million (reported) and 17,762 million (adjusted). This positive trend reversed in 2022, with losses again incurred at -1,981 million (reported) and -2,404 million (adjusted). The following years, 2023 and 2024, show a recovery trajectory, with net income increasing to 4,347 million and 5,879 million (reported), and similarly 4,619 million and 5,999 million (adjusted). Overall, the net income pattern is cyclical with a peak in 2021, a downturn in 2022, and gradual improvement through 2023 and 2024.
- Return on Assets (ROA)
- The reported and adjusted ROA values reflect the net income pattern, displaying significant fluctuations over time. In 2020, the ROA was negative at -0.48% (reported) and -0.45% (adjusted), indicating unprofitable asset utilization. A sharp improvement occurred in 2021, with ROA reaching 6.98% and 6.91% respectively, correlating with high net income. However, this was followed by a decline in 2022, where ROA fell into negative territory at -0.77% (reported) and -0.94% (adjusted). The subsequent years show recovery, with incremental increases to 1.59% and 2.06% (reported) and 1.69% and 2.10% (adjusted) for 2023 and 2024, respectively. This trend suggests improving efficiency in asset use after the mid-period dip.
- General Insights
- The overall financial data indicates a period of instability marked by significant profit and loss swings. The peak in 2021 points to a strong operational performance, potentially due to favorable market or internal factors. The downturn in 2022 may reflect challenges such as increased costs, market disruptions, or one-off events impacting profitability. The recovery phase observed in 2023 and 2024 suggests effective strategic or operational adjustments leading to gradual improvement in both profitability and asset utilization. The close alignment between reported and adjusted figures indicates limited impact from adjustments on core profitability and ROA trends.