Stock Analysis on Net

Ford Motor Co. (NYSE:F)

$24.99

Current Ratio
since 2005

Microsoft Excel

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Calculation

Ford Motor Co., current ratio, long-term trends, calculation

Microsoft Excel

Based on: 10-K (reporting date: 2025-12-31), 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), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).

1 US$ in millions


The current ratio exhibited considerable fluctuation between 2005 and 2025. Initially, the ratio decreased from 0.90 in 2005 to 0.69 in 2008, indicating a weakening in the company’s ability to cover its short-term liabilities with its short-term assets. A subsequent recovery occurred between 2009 and 2011, with the ratio rising to 1.16. Following this, a decline was observed through 2013, reaching a low of 0.68. A significant improvement then took place, with the ratio increasing to 1.25 in 2015 and remaining relatively stable, fluctuating between 1.16 and 1.23 for the next several years.

Overall Trend
From 2015 to 2021, the current ratio demonstrated a period of stability, consistently remaining around 1.20. This suggests a consistent ability to meet short-term obligations during this timeframe. However, a slight downward trend is apparent in the most recent years, with the ratio decreasing from 1.20 in 2021 to 1.07 in 2025.
Periods of Weakness
The periods 2005-2008 and 2012-2014 represent times of relative financial weakness, as indicated by the lower current ratios. The ratio below 1.0 in these periods suggests potential liquidity concerns. The dip in 2008 coincided with broader economic challenges, while the period around 2012-2014 may reflect company-specific restructuring or investment activities.
Periods of Strength
The years 2010-2011 and 2015-2021 demonstrate the strongest liquidity position, with the current ratio consistently above 1.10 and frequently exceeding 1.20. This indicates a comfortable margin of safety in covering short-term liabilities.
Recent Developments
The decrease in the current ratio from 1.20 in 2021 to 1.07 in 2025 warrants attention. While still above 1.0, this decline suggests a potential tightening of liquidity and may require further investigation into the composition of current assets and liabilities.

In summary, the current ratio has experienced significant variability over the analyzed period. While generally indicating an adequate ability to meet short-term obligations, the recent downward trend suggests a need for continued monitoring of liquidity management.


Comparison to Competitors


Comparison to Sector (Automobiles & Components)


Comparison to Industry (Consumer Discretionary)