Ford Motor Co. (NYSE:F)

The analysis of the financial ratios over the five-year period reveals several notable trends in asset utilization, liquidity, leverage, profitability, and returns.

Asset Turnover

Both reported and adjusted total asset turnover ratios show a consistent upward trend from 2020 to 2024. The reported turnover rose from 0.43 to 0.61, while the adjusted turnover increased from 0.46 to 0.64. This indicates improving efficiency in generating sales from the company’s assets over time, with a slight plateau between 2023 and 2024.

Liquidity Ratios

The reported and adjusted current ratios remained largely stable around 1.2 throughout the period, with a minor decline in 2024 to 1.16 (reported) and 1.2 (adjusted). This suggests the company maintained a consistent short-term liquidity position, though there was a slight tightening in 2024, which could imply decreasing cushion in meeting short-term obligations.

Leverage Ratios

Leverage metrics indicate significant shifts. The reported debt to equity ratio decreased sharply from 5.27 in 2020 to 2.85 in 2021, suggesting deleveraging, but then gradually increased again to 3.54 by 2024. The adjusted debt to equity ratio follows a similar pattern but shows a higher overall level, ending at 4.25. Debt to capital ratios also decreased markedly in 2021 but rose gradually afterward. Financial leverage ratios exhibit a similar trend, dropping then increasing, with adjusted leverage consistently higher than reported. Overall, leverage decreased substantially after 2020 but has been rising moderately since 2021, indicating increasing reliance on debt financing.

Profitability Margins

Profit margins reveal volatile yet improving performance. The reported net profit margin swung from a negative -1.1% in 2020 to a strong positive 14.21% in 2021, then declined sharply to negative -1.33% in 2022 before recovering to 3.4% in 2024. Adjusted margins follow a similar pattern but with slightly lower values in downturn years and modestly higher in the most recent year. This volatility suggests episodic profitability challenges with some recovery in recent periods.

Return on Equity (ROE) and Return on Assets (ROA)

Returns exhibit considerable fluctuation. Reported ROE was deeply negative in 2020 and 2022 (-4.17% and -4.58%), peaked sharply in 2021 at 36.97%, and then moderated to 13.11% in 2024. Adjusted ROE patterns mirror these extremes but are more pronounced, including a deeper negative dip in 2022 (-12.85%) and a stronger final value (16.77%) in 2024. Similarly, reported ROA ranged from negative values in 2020 and 2022 to positive but modest returns by 2024, with adjusted ROA showing greater negative impact during downturns but improved returns recently. These variations reflect sensitivity to profitability shifts and leverage effects over the period.

The analysis of the provided financial data reveals several notable trends over the five-year period ending December 31, 2024.

Company Revenues Excluding Ford Credit

There is a consistent upward trend in company revenues excluding Ford Credit, increasing from 115,941 million US dollars in 2020 to 172,706 million US dollars in 2024. This represents significant growth, with substantial year-over-year increases, especially notable between 2021 and 2022, and again between 2022 and 2023.

Total Assets

Total assets demonstrate moderate fluctuations. Starting at 267,261 million US dollars in 2020, there is a slight decrease through 2021 and 2022, reaching 255,884 million US dollars, followed by a recovery and increase to 285,196 million US dollars by 2024. This indicates some variability but an overall upward trajectory in the latest years.

Reported Total Asset Turnover

The reported total asset turnover ratio increases steadily from 0.43 in 2020 to 0.61 in both 2023 and 2024. This improvement suggests enhanced efficiency in utilizing assets to generate revenue over the period. The ratio's growth is most pronounced between 2021 and 2022, continuing to improve modestly thereafter.

Adjusted Company Revenues Excluding Ford Credit

The adjusted company revenues excluding Ford Credit closely mirror the reported revenues, with a steady increase from 116,379 million US dollars in 2020 to 173,381 million US dollars in 2024. The slight differences compared to the reported figures suggest minor adjustments in revenue recognition or accounting practices, but the general growth trend remains consistent.

Adjusted Total Assets

Adjusted total assets show a decreasing trend initially from 254,895 million US dollars in 2020 to 240,425 million US dollars in 2022, followed by an increase to 268,905 million US dollars by 2024. This mirrors the pattern seen in reported total assets but with lower absolute values, indicating adjustments that reduce asset values somewhat, yet the upward trend in the latter years is maintained.

Adjusted Total Asset Turnover

Adjusted total asset turnover improves steadily from 0.46 in 2020 to 0.65 in 2023, slipping slightly to 0.64 in 2024. This suggests increasing operational efficiency when adjustments are considered, with a marginal dip in the final year, implying potential stabilization or minor challenges in asset utilization.

In summary, the company exhibits a strong revenue growth trajectory with improving asset utilization as indicated by rising total asset turnover ratios, both reported and adjusted. While asset values fluctuate, there is a recovery and growth in the later years of the period analyzed. The adjusted figures align closely with reported data, confirming the robustness of the financial performance trends observed.

The analysis of the annual financial data reveals several notable trends in the liquidity position over the five-year period examined.

Current Assets

Current assets show a fluctuating yet overall increasing trend. Beginning at 116,744 million US dollars at the end of 2020, there is a slight decrease in 2021 followed by consistent growth through to 2024, reaching 124,474 million US dollars. This suggests a strengthening in resources that can be converted to cash within a year.

Current Liabilities

Current liabilities display a similar but less stable pattern. Starting at 97,192 million US dollars in 2020, the values decline in 2021 but rise again through subsequent years, reaching 106,859 million US dollars by the end of 2024. The increase in liabilities, especially in the last two years, indicates a higher obligation to settle short-term debts.

Reported Current Ratio

The reported current ratio remains relatively stable at 1.2 from 2020 to 2023, indicating a consistent ability to cover current liabilities with current assets. However, there is a slight decline to 1.16 in 2024, signaling a marginal reduction in liquidity.

Adjusted Current Assets and Liabilities

Adjusted current assets and liabilities closely mirror the reported figures, with small variations that result in slightly higher adjusted current assets and lower adjusted current liabilities throughout the period. This adjustment leads to a slightly improved liquidity position when measured by the adjusted ratios.

Adjusted Current Ratio

The adjusted current ratio remains steady at 1.23 from 2020 to 2023 before decreasing slightly to 1.2 in 2024, paralleling the trend observed in the reported current ratio but maintaining a marginally stronger position. This suggests that after adjustments, the company's short-term financial health remains robust but is experiencing a minor decrease in the ability to meet current obligations.

Overall, the data indicate a generally stable liquidity profile with mild fluctuations in both assets and liabilities. The small downward trend in the current ratio in the most recent year warrants monitoring, as it may signal emerging pressures on short-term financial flexibility.

The financial data reveals notable shifts in the debt and equity structure over the reported period from 2020 to 2024.

Total Debt

Total debt initially decreased substantially from $161,684 million in 2020 to $138,092 million in 2021, indicating an effort to reduce leverage or repay liabilities. Post-2021, total debt showed a gradual upward trend, increasing each year to reach $158,522 million in 2024, approaching the 2020 level.

Equity Attributable to Ford Motor Company

Equity rose significantly from $30,690 million in 2020 to $48,519 million in 2021, pointing to improved shareholder value or retained earnings accumulation. However, equity declined over the next two years, dropping to $42,242 million in 2022 and $42,773 million in 2023, before slightly recovering to $44,835 million in 2024. This pattern suggests volatility in equity possibly due to variations in profitability, dividend payouts, or other comprehensive income impacts.

Reported Debt to Equity Ratio

This ratio improved markedly in 2021, falling from 5.27 in 2020 to 2.85, reflecting the simultaneous debt reduction and equity increase. Subsequently, the debt to equity ratio increased each year through 2024, reaching 3.54, indicating a gradual rise in leverage relative to equity during the latter period.

Adjusted Total Debt

Adjusted total debt mirrors the trend in reported total debt but at a slightly higher scale, beginning at $162,998 million in 2020, dropping to $139,485 million in 2021, and then ascending steadily to $160,862 million by 2024. This reflects consistent patterns in the company's broader debt obligations when adjusting for any off-balance sheet items or other considerations.

Adjusted Total Equity

Adjusted equity, which likely accounts for additional adjustments such as minority interests or certain accounting treatments, increased from $25,703 million in 2020 to $43,486 million in 2021. However, it declined for the next two years to $36,544 million in 2022 and $34,453 million in 2023 before rising slightly to $37,882 million in 2024. The fluctuations in adjusted equity are somewhat more pronounced than in reported equity, highlighting underlying variations in value components.

Adjusted Debt to Equity Ratio

Aligned with trends in the adjusted figures, this ratio dramatically decreased from 6.34 in 2020 to 3.21 in 2021, indicating a stronger balance sheet. From 2021 onward, the ratio increased consistently, peaking at 4.39 in 2023 before even slightly improving to 4.25 in 2024, showing rising leverage but a modest recent strengthening.

In summary, the company experienced a strong deleveraging and equity strengthening phase between 2020 and 2021. Post-2021, both debt levels and leverage ratios increased gradually, accompanied by some volatility in equity figures. The adjusted figures consistently present higher leverage ratios than the reported figures but follow the same overall trend, suggesting elevated risk exposure after the initial deleveraging effort. The recent year showed some signs of stabilization in equity and slight improvements in adjusted leverage, indicating cautious financial management in managing debt and equity balance.

Over the observed periods, the total debt exhibits an overall fluctuating trend. Initially, there is a notable decrease from 161,684 million US dollars at the end of 2020 to 138,092 million in 2021, followed by minor increments through 2022 and subsequent years, culminating in 158,522 million by the end of 2024. This pattern suggests a period of debt reduction succeeded by gradual accumulation.

Total capital demonstrates a general downward trajectory from 192,374 million US dollars in 2020 to 182,211 million in 2022, before a recovery phase beginning in 2023, and a prominent increase to 203,357 million by the end of 2024. This indicates some volatility in capital base, with a rebound after 2022.

The reported debt to capital ratio aligns with these observations, starting at a relatively high 0.84 in 2020, then declining to 0.74 in 2021, which corresponds to the reduction in total debt relative to capital. Subsequently, it rises progressively to 0.78 by 2023 and stabilizes at that level through 2024, reflecting increased leverage following the capital recovery.

When adjusting the figures for certain items (as indicated by the adjusted total debt and capital), a similar but slightly higher leverage pattern emerges. Adjusted total debt shows a comparable decline from 162,998 million in 2020 to 139,485 million in 2021, followed by incremental increases to 160,862 million in 2024. Adjusted total capital follows a similar lowering trend until 2022, then climbs notably in the final two years to reach 198,744 million in 2024.

The adjusted debt to capital ratio starts even higher at 0.86 in 2020, decreases to 0.76 in 2021, and subsequently rises to 0.81 in 2024. This trend underscores a relatively greater leverage after adjustments compared to the reported figures, but with the same overall pattern of initial deleveraging followed by increased debt reliance amid capital fluctuations.

In summary, the data reflect a strategic period of debt reduction and capital consolidation in 2021, followed by incremental increases in debt and capital growth from 2022 onward. The ratios indicate tightening leverage following initial improvement, suggesting cautious but deliberate increases in debt relative to the capital base during the latest years.

The financial data exhibits multiple trends over the five-year period from 2020 to 2024. Total assets display a moderate decline from 2020 to 2022, decreasing from approximately $267 billion to $256 billion. Subsequently, there is an upward trajectory in total assets, reaching around $285 billion by the end of 2024.

Equity attributable to the company shows significant fluctuation during the period. It experienced a notable increase in 2021, peaking at approximately $48.5 billion, before declining through 2023 to roughly $42.8 billion. A moderate recovery is observed in 2024, with equity rising again to about $44.8 billion.

The reported financial leverage ratio demonstrates a generally declining trend from 2020 to 2021, dropping sharply from 8.71 to 5.3. This is followed by a gradual increase in leverage through to 2023, reaching 6.39, and then stabilizing near that level at 6.36 in 2024.

Adjusted total assets show a pattern similar to total assets, declining from 2020 to 2022 and then rising through to 2024. The adjusted figures are slightly lower throughout but follow consistent directional changes, reaching roughly $269 billion by the end of 2024.

Adjusted total equity mirrors some of the volatility noted in the equity attributable to the company. Starting at about $25.7 billion in 2020, it sharply rises in 2021 to approximately $43.5 billion, then declines notably in 2022 and continues to decrease into 2023. By 2024, a modest improvement is visible as adjusted equity increases to an estimated $37.9 billion.

The adjusted financial leverage ratio exhibits a strong decline from 9.92 in 2020 to 5.59 in 2021, followed by a steady increase across the subsequent years. It peaks at 7.44 in 2023 before slightly decreasing to 7.1 in 2024. This suggests a tightening in the capital structure after an initial deleveraging phase in 2021, with financial leverage increasing gradually thereafter but remaining lower than the 2020 level.

Total Assets

Moderate decline from 2020 to 2022, followed by recovery and growth through 2024.

Equity Attributable to Ford Motor Company

Significant increase in 2021, subsequent decline to 2023, with partial recovery in 2024.

Reported Financial Leverage

Sharp initial decrease in 2021, gradual increase through 2023, stabilizing in 2024.

Adjusted Total Assets

Mirrors total assets trend with slight lower absolute values, downward till 2022 and upward after.

Adjusted Total Equity

Similar volatility to attributable equity, with a rise in 2021, decreases to 2023, and modest recovery in 2024.

Adjusted Financial Leverage

Initial marked decrease in 2021 followed by a gradual increase, peaking in 2023 and easing slightly in 2024.

Net Income (Loss) Attributable to Ford Motor Company

The net income experienced significant fluctuations over the period. It was negative in 2020 and 2022, with losses of $1,279 million and $1,981 million respectively. However, there were substantial profits in 2021, 2023, and 2024, with net incomes of $17,937 million, $4,347 million, and $5,879 million respectively. The peak profitability occurred in 2021, followed by a sharp decline into a loss in 2022, and then a recovery in the subsequent years.

Company Revenues Excluding Ford Credit

Revenues showed a consistent upward trend throughout the analyzed period. Starting at $115,941 million in 2020, revenues increased annually, reaching $172,706 million by 2024. This steady growth suggests an expanding business volume or improved sales performance across the years.

Reported Net Profit Margin

This metric mirrored the volatility seen in net income. The margin was negative in 2020 and 2022 (-1.1% and -1.33%), indicating losses relative to revenues during those years. In contrast, 2021 saw a high margin of 14.21%, reflecting strong profitability. The margin diminished but remained positive in 2023 and 2024, at 2.62% and 3.4% respectively, indicating modest but improving profitability.

Adjusted Net Income (Loss)

The adjusted net income followed a similar pattern to reported net income, with losses in 2020 and 2022 (-$1,724 million and -$4,695 million). Profits were observed in 2021, 2023, and 2024, but the values suggest a somewhat more pronounced loss in 2022 compared to the reported figures. Recovery resumed in the later years with $3,282 million in 2023 and $6,353 million in 2024, indicating improvement after adjustments.

Adjusted Company Revenues Excluding Ford Credit

Adjusted revenues also displayed continuous growth, increasing year over year from $116,379 million in 2020 to $173,381 million in 2024. The adjusted figures are slightly higher than the non-adjusted revenues, but the overall growth trend remains consistent and positive.

Adjusted Net Profit Margin

Adjusted profit margins reflected negative returns in 2020 and 2022 (-1.48% and -3.14%), with the margin in 2022 showing a deeper loss relative to revenues compared to reported margins. Positive margins were recorded in 2021, 2023, and 2024 (13.68%, 1.97%, and 3.66%), though the margins after adjustment in 2023 and 2024 are slightly lower compared to reported figures. The trend implies stabilization and gradual improvement in profitability when excluding extraordinary items.

The financial data reveals several notable trends over the five-year period ending December 31, 2024.

Net Income (Loss) Attributable to the Company

The net income exhibits significant volatility. It started with a loss of approximately $1.28 billion in 2020, surged to a profit of $17.94 billion in 2021, then reverted to a loss of about $1.98 billion in 2022. Thereafter, profitability was restored in 2023 and improved further in 2024 with net incomes of $4.35 billion and $5.88 billion, respectively. This pattern indicates fluctuation in operational outcomes potentially driven by external market conditions or internal restructuring.

Equity Attributable to the Company

Equity showed growth from $30.69 billion at the end of 2020 to a peak of $48.52 billion in 2021, reflecting strong retained earnings or capital injections. However, it declined in 2022 and 2023 to $43.24 billion and $42.77 billion, respectively, before a slight recovery to $44.84 billion in 2024. This suggests some reduction in equity base possibly due to losses or dividend distributions, partially offset in the most recent year.

Reported Return on Equity (ROE)

ROE mirrors the income trends, with a negative return of -4.17% in 2020 turning sharply positive to 36.97% in 2021. It then dropped back to a negative -4.58% in 2022 but rebounded to positive single digits at 10.16% in 2023 and increased modestly to 13.11% in 2024. This volatility underscores the sensitivity of profitability relative to equity during the period.

Adjusted Net Income (Loss)

Adjusted net income, which may exclude extraordinary items, follows a pattern similar to reported net income but with wider swings. Starting at a loss of $1.72 billion in 2020, it improved dramatically to a gain of $17.32 billion in 2021, dipped to a substantial loss of $4.70 billion in 2022, then returned to profitability with $3.28 billion in 2023 and increasing to $6.35 billion in 2024. The larger negative adjustment in 2022 indicates notable one-off costs or write-downs that year.

Adjusted Total Equity

Adjusted total equity shows a rise from $25.70 billion in 2020 to $43.49 billion in 2021, thereafter decreasing to $36.54 billion in 2022 and further to $34.45 billion in 2023, before recovering somewhat to $37.88 billion in 2024. This trend points to fluctuations in retained earnings and possibly capital structure changes when excluding adjustments.

Adjusted Return on Equity (ROE)

Adjusted ROE exhibits a trend comparable to reported ROE but with a wider negative dip in 2022 at -12.85%, reflecting the sharp adjusted net loss in that year. The metric rose from -6.71% in 2020 to a peak of 39.83% in 2021, then declined sharply and subsequently recovered to 9.53% in 2023 and 16.77% in 2024. This pattern indicates that excluding extraordinary items highlights the substantial profitability volatility the company faced.

In summary, the period analyzed shows pronounced fluctuations in profitability and equity metrics, with a strong performance peak in 2021 followed by a downturn in 2022. The subsequent recovery in 2023 and 2024 suggests an improving financial position, albeit with ongoing variability. Both reported and adjusted figures reflect these cyclical changes, underscoring the company's exposure to volatile market or operational factors during these years.

The analyzed data reveals fluctuating financial performance indicators over the five-year period. Net income attributable to the company experienced significant variability, with a substantial loss in 2020 followed by a strong profit in 2021, a return to negative results in 2022, and subsequent recoveries in 2023 and 2024. This suggests a volatile earnings environment with periods of both profitability and loss.

Net Income (Loss) and Adjusted Net Income (Loss)

Net income showed a notable increase from a loss of approximately 1.28 billion USD in 2020 to a gain of nearly 17.94 billion USD in 2021, followed by a decline back into loss territory of about 1.98 billion USD in 2022. The period after saw a recovery with income turning positive again, reaching approximately 5.88 billion USD by 2024. The adjusted net income figures followed a similar pattern but highlighted larger losses in negative years and slightly different profit magnitudes in positive years, indicating the impact of adjustments on reported performance.

Total Assets and Adjusted Total Assets

Total assets showed a mild downward trend from 2020 to 2022, decreasing from around 267.26 billion USD to 255.88 billion USD, before rebounding in 2023 and 2024, reaching 285.20 billion USD in the final year. Adjusted total assets mirrored this trend but consistently presented lower values, with a decrease between 2020 and 2022, followed by recovery through 2024. This suggests some asset reclassifications or adjustments have a consistent impact on the reported asset base.

Return on Assets (ROA)

The reported ROA followed the net income trend, moving from a negative return of -0.48% in 2020 to a positive peak of 6.98% in 2021, then declining to negative again at -0.77% in 2022, and marginally improving to 1.59% and 2.06% in the subsequent years. Adjusted ROA exhibited a more pronounced dip in 2022 to -1.95% but recovered similarly, reaching 2.36% in 2024. These fluctuations indicate varying efficiency in asset utilization to generate profit, with notable volatility throughout the period.

Overall, the data portrays a period of financial instability with strong recoveries following downturns, reflected across income, asset base, and profitability ratios. The adjusted figures, which consistently report larger losses and lower asset values during down years, imply significant adjustments impacting true operational performance. The upward trend in asset values and ROA in the later years suggests improving financial health and operational efficiency toward the end of the timeline.