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: 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 analysis of the presented financial data reveals several noteworthy trends regarding the liquidity position of the company over the examined period.

Current Assets
Current assets showed a fluctuating pattern throughout the years. Initially, there was an increase from approximately 46.4 billion in 2005 to a peak of about 57.3 billion in 2006, followed by a decline to roughly 34.1 billion in 2008. From 2009 onward, current assets generally trended upward, reaching over 124 billion by 2024, with a notable surge between 2013 and 2015, where values nearly doubled.
Current Liabilities
Current liabilities remained relatively stable from 2005 to 2008, hovering in the range of 49 to 51 billion. Starting in 2012, there was a significant jump to approximately 73 billion, and liabilities hovered broadly between 74 billion to 106 billion through 2024. The general trend indicates an increasing burden of short-term liabilities over the period, with slight moderation around 2016 to 2017.
Current Ratio
The current ratio, a key indicator of short-term liquidity, fluctuated considerably during the earlier years. It started below 1 at 0.9 in 2005, improved to above 1 in 2006 and 2007, but fell sharply below 1 during the financial crisis years of 2008 to 2014, with the lowest points being around 0.68 to 0.75, indicating a potential liquidity squeeze. Post-2014, the current ratio stabilized above 1.0, consistently ranging from about 1.16 to 1.25, reflecting an improved capacity to cover current liabilities with current assets. This suggests the company managed to strengthen its liquidity position moving forward from the mid-2010s.

In summary, the company experienced a volatile liquidity position in the first decade of the period, particularly impacted by spikes in current liabilities and decreases in current assets around the financial crisis. The more recent years demonstrate a stabilizing and strengthening liquidity profile, with current assets increasing and current ratio consistently maintaining a level above 1, indicating enhanced short-term financial health. However, the continuing increase in current liabilities suggests ongoing obligations that necessitate careful management.


Comparison to Competitors


Comparison to Sector (Automobiles & Components)


Comparison to Industry (Consumer Discretionary)