Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Ford Motor Co., liquidity ratios (quarterly data)
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
The liquidity position, as indicated by the observed ratios, demonstrates a generally stable but subtly declining trend over the analyzed period. While all three ratios – current, quick, and cash – remain above zero, a consistent downward pressure is apparent, particularly in the latter half of the period. This suggests a potential, albeit gradual, weakening in the company’s ability to meet its short-term obligations using its most liquid assets.
- Current Ratio
- The current ratio exhibited relative stability between March 31, 2022, and December 31, 2022, fluctuating between 1.16 and 1.20. A slight downward trend commenced in March 31, 2023, continuing through December 31, 2025, where the ratio reached 1.07. This indicates a gradual decrease in the company’s ability to cover its current liabilities with its current assets.
- Quick Ratio
- The quick ratio followed a similar pattern to the current ratio, remaining relatively consistent between 0.95 and 1.02 from March 31, 2022, to December 31, 2022. A decline began in March 31, 2023, and continued through December 31, 2025, ending at 0.90. This suggests a decreasing capacity to meet short-term obligations with highly liquid assets, excluding inventory.
- Cash Ratio
- The cash ratio demonstrated the most pronounced downward trend. Starting at 0.46 in March 31, 2022, it experienced minor fluctuations before steadily decreasing to 0.33 by March 31, 2024, and remaining around that level through December 31, 2025. This indicates a diminishing ability to cover immediate liabilities with cash and cash equivalents.
Overall, the observed trends suggest a gradual erosion of liquidity. While the ratios remain at levels that do not immediately signal concern, the consistent decline warrants monitoring. Further investigation into the underlying drivers of these changes – such as shifts in working capital management, inventory levels, or debt structure – would be beneficial to assess the long-term implications for the company’s financial health.
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Current Ratio
Ford Motor Co., current ratio calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Current assets | 123,487) | 130,720) | 126,612) | 123,054) | 124,474) | 125,099) | 120,518) | 120,595) | 121,481) | 121,361) | 121,712) | 115,123) | 116,476) | 108,088) | 100,469) | 106,142) | |||||
| Current liabilities | 114,890) | 116,648) | 114,988) | 108,732) | 106,859) | 109,036) | 103,403) | 103,206) | 101,531) | 100,268) | 101,015) | 95,905) | 96,866) | 90,167) | 86,452) | 90,352) | |||||
| Liquidity Ratio | |||||||||||||||||||||
| Current ratio1 | 1.07 | 1.12 | 1.10 | 1.13 | 1.16 | 1.15 | 1.17 | 1.17 | 1.20 | 1.21 | 1.20 | 1.20 | 1.20 | 1.20 | 1.16 | 1.17 | |||||
| Benchmarks | |||||||||||||||||||||
| Current Ratio, Competitors2 | |||||||||||||||||||||
| General Motors Co. | 1.17 | 1.23 | 1.22 | 1.21 | 1.13 | 1.21 | 1.18 | 1.16 | 1.08 | 1.14 | 1.15 | 1.10 | 1.10 | 1.14 | 1.15 | 1.11 | |||||
| Tesla Inc. | 2.16 | 2.07 | 2.04 | 2.00 | 2.02 | 1.84 | 1.91 | 1.72 | 1.73 | 1.69 | 1.59 | 1.57 | 1.53 | 1.46 | 1.43 | 1.35 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Current ratio = Current assets ÷ Current liabilities
= 123,487 ÷ 114,890 = 1.07
2 Click competitor name to see calculations.
The current ratio exhibited relative stability over the observed period, ranging between 1.07 and 1.21. Initial values in the first quarter of 2022 stood at 1.17, and fluctuated modestly through the end of 2023, generally remaining above 1.16. A slight downward trend became apparent in the latter half of 2024 and continued into the first half of 2025, culminating in a ratio of 1.07 in the final quarter of 2025.
- Overall Trend
- The current ratio demonstrated a generally stable profile for the majority of the period. However, the most recent quarters indicate a subtle decline, suggesting a potential weakening in short-term liquidity. While the ratio remains above 1.0, indicating sufficient current assets to cover current liabilities, the decreasing trend warrants monitoring.
- Fluctuations and Key Periods
- A minor increase in the current ratio was observed between March 2022 and September 2022, rising from 1.17 to 1.20. The ratio remained at 1.20 for the subsequent two quarters before decreasing to 1.17 by March 2023. From March 2023 through September 2023, the ratio remained stable around 1.20. The most significant decrease occurred between March 2024 and December 2025, with the ratio falling from 1.17 to 1.07.
- Recent Performance (2024-2025)
- The final year of the observed period shows a consistent, albeit gradual, decrease in the current ratio. This suggests a possible shift in the composition of current assets and liabilities, or changes in working capital management. The decline from 1.15 in September 2024 to 1.07 in December 2025 is the most pronounced decrease within the entire timeframe.
The observed fluctuations, while not dramatic, suggest a need for continued assessment of the company’s short-term financial health. Further investigation into the underlying drivers of these changes in current assets and current liabilities is recommended.
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Quick Ratio
Ford Motor Co., quick ratio calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Cash and cash equivalents | 23,356) | 26,788) | 23,020) | 20,864) | 22,935) | 23,449) | 19,953) | 19,721) | 24,862) | 26,427) | 26,406) | 22,144) | 25,134) | 21,548) | 19,516) | 21,013) | |||||
| Marketable securities | 15,131) | 15,400) | 14,484) | 14,362) | 15,413) | 13,456) | 14,613) | 14,742) | 15,309) | 14,688) | 16,415) | 17,369) | 18,936) | 18,625) | 17,184) | 20,215) | |||||
| Ford Credit finance receivables, net of allowance for credit losses | 49,130) | 48,214) | 47,593) | 47,997) | 51,850) | 49,340) | 47,434) | 44,600) | 46,425) | 42,572) | 42,557) | 40,350) | 38,720) | 33,902) | 30,716) | 32,775) | |||||
| Trade and other receivables, less allowances | 15,398) | 19,199) | 19,709) | 17,225) | 14,723) | 16,469) | 16,802) | 18,698) | 15,601) | 15,129) | 14,482) | 14,920) | 15,729) | 14,764) | 15,037) | 13,031) | |||||
| Total quick assets | 103,015) | 109,601) | 104,806) | 100,448) | 104,921) | 102,714) | 98,802) | 97,761) | 102,197) | 98,816) | 99,860) | 94,783) | 98,519) | 88,839) | 82,453) | 87,034) | |||||
| Current liabilities | 114,890) | 116,648) | 114,988) | 108,732) | 106,859) | 109,036) | 103,403) | 103,206) | 101,531) | 100,268) | 101,015) | 95,905) | 96,866) | 90,167) | 86,452) | 90,352) | |||||
| Liquidity Ratio | |||||||||||||||||||||
| Quick ratio1 | 0.90 | 0.94 | 0.91 | 0.92 | 0.98 | 0.94 | 0.96 | 0.95 | 1.01 | 0.99 | 0.99 | 0.99 | 1.02 | 0.99 | 0.95 | 0.96 | |||||
| Benchmarks | |||||||||||||||||||||
| Quick Ratio, Competitors2 | |||||||||||||||||||||
| General Motors Co. | 0.92 | 0.98 | 0.97 | 0.96 | 0.90 | 0.95 | 0.91 | 0.88 | 0.83 | 0.88 | 0.88 | 0.82 | 0.86 | 0.88 | 0.85 | 0.84 | |||||
| Tesla Inc. | 1.53 | 1.48 | 1.35 | 1.37 | 1.42 | 1.21 | 1.24 | 1.04 | 1.13 | 1.07 | 0.96 | 0.93 | 0.94 | 0.95 | 0.96 | 0.95 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 103,015 ÷ 114,890 = 0.90
2 Click competitor name to see calculations.
The quick ratio for the analyzed period demonstrates a generally stable, though slightly fluctuating, liquidity position. Throughout the observed timeframe, the ratio consistently remains near 1.0, indicating a reasonable ability to meet short-term obligations with highly liquid assets.
- Overall Trend
- The quick ratio exhibits a relatively narrow range, fluctuating between 0.91 and 1.02. There isn't a strong, sustained upward or downward trend over the entire period. The ratio generally hovered around the 0.99 mark for a significant portion of the analyzed quarters.
- Initial Period (Mar 31, 2022 – Dec 31, 2022)
- The quick ratio began at 0.96 and increased to 1.02 by the end of 2022. This suggests a slight improvement in the company’s ability to cover immediate liabilities with quick assets during this period. Both total quick assets and current liabilities experienced increases, but quick assets grew at a slightly faster rate.
- 2023 Performance
- Throughout 2023, the quick ratio remained consistently at 0.99, with minor fluctuations. This indicates a stable liquidity position throughout the year. Both quick assets and current liabilities increased, maintaining a relatively consistent ratio.
- Recent Fluctuations (2024-2025)
- A slight downward trend is observed in the more recent quarters. The ratio decreased from 0.95 in March 2024 to 0.90 in December 2025. This decline is attributable to a faster increase in current liabilities compared to the growth of quick assets. While still above 0.90, this warrants monitoring. The lowest point was 0.90 in December 2025.
- Asset and Liability Relationship
- Total quick assets and current liabilities generally moved in the same direction, contributing to the ratio’s stability. However, the recent period suggests that current liabilities are growing at a pace that could potentially strain short-term liquidity if not addressed. The difference between quick assets and current liabilities remained relatively small throughout the period.
In conclusion, the quick ratio indicates a generally healthy liquidity position, but the recent slight decline suggests a need for continued monitoring of the relationship between quick assets and current liabilities.
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Cash Ratio
Ford Motor Co., cash ratio calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Cash and cash equivalents | 23,356) | 26,788) | 23,020) | 20,864) | 22,935) | 23,449) | 19,953) | 19,721) | 24,862) | 26,427) | 26,406) | 22,144) | 25,134) | 21,548) | 19,516) | 21,013) | |||||
| Marketable securities | 15,131) | 15,400) | 14,484) | 14,362) | 15,413) | 13,456) | 14,613) | 14,742) | 15,309) | 14,688) | 16,415) | 17,369) | 18,936) | 18,625) | 17,184) | 20,215) | |||||
| Total cash assets | 38,487) | 42,188) | 37,504) | 35,226) | 38,348) | 36,905) | 34,566) | 34,463) | 40,171) | 41,115) | 42,821) | 39,513) | 44,070) | 40,173) | 36,700) | 41,228) | |||||
| Current liabilities | 114,890) | 116,648) | 114,988) | 108,732) | 106,859) | 109,036) | 103,403) | 103,206) | 101,531) | 100,268) | 101,015) | 95,905) | 96,866) | 90,167) | 86,452) | 90,352) | |||||
| Liquidity Ratio | |||||||||||||||||||||
| Cash ratio1 | 0.33 | 0.36 | 0.33 | 0.32 | 0.36 | 0.34 | 0.33 | 0.33 | 0.40 | 0.41 | 0.42 | 0.41 | 0.45 | 0.45 | 0.42 | 0.46 | |||||
| Benchmarks | |||||||||||||||||||||
| Cash Ratio, Competitors2 | |||||||||||||||||||||
| General Motors Co. | 0.30 | 0.32 | 0.31 | 0.30 | 0.28 | 0.34 | 0.32 | 0.28 | 0.28 | 0.36 | 0.35 | 0.31 | 0.34 | 0.35 | 0.34 | 0.33 | |||||
| Tesla Inc. | 1.39 | 1.33 | 1.23 | 1.24 | 1.27 | 1.10 | 1.11 | 0.91 | 1.01 | 0.98 | 0.84 | 0.82 | 0.83 | 0.86 | 0.87 | 0.84 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 38,487 ÷ 114,890 = 0.33
2 Click competitor name to see calculations.
The cash ratio for the analyzed period demonstrates a generally declining trend, with some fluctuations. Initially, the ratio exhibited relative stability before experiencing a more pronounced decrease in later periods. This suggests a potential weakening in the company’s immediate ability to meet its current obligations using only cash and cash equivalents.
- Overall Trend
- From March 31, 2022, to December 31, 2025, the cash ratio decreased from 0.46 to 0.33. While there are quarterly variations, the overall direction is downward. The most significant decline occurred between December 31, 2022, and March 31, 2024, dropping from 0.40 to 0.33.
- Initial Period (Mar 31, 2022 – Dec 31, 2022)
- The cash ratio remained relatively stable, fluctuating between 0.42 and 0.46. This indicates a consistent, though modest, capacity to cover short-term liabilities with available cash. Total cash assets experienced some volatility during this period, but current liabilities remained high, keeping the ratio within a narrow range.
- Subsequent Decline (Mar 31, 2023 – Dec 31, 2025)
- A more noticeable downward trend is observed. The ratio decreased from 0.41 in March 2023 to 0.33 in December 2025. This decline coincides with increases in current liabilities, which consistently exceeded total cash assets throughout this period. While cash assets saw some increases in specific quarters (e.g., September 2025), these were not sufficient to offset the growth in current liabilities.
- Recent Fluctuations
- The period from September 30, 2024, to December 31, 2025, shows some fluctuation, with the ratio increasing slightly to 0.36 in September 2024 before decreasing again to 0.33 by the end of 2025. This suggests that short-term liquidity management may be actively occurring, but the underlying trend remains negative.
The consistent increase in current liabilities relative to total cash assets warrants further investigation. A sustained low cash ratio could indicate increased reliance on other forms of short-term financing or potential difficulties in meeting immediate financial obligations.
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