Ford Motor Co. (NYSE:F)

The analysis of the quarterly liquidity ratios reveals several noteworthy trends over the examined periods.

Current Ratio

The current ratio has remained relatively stable throughout the observed quarters, fluctuating marginally around a range of approximately 1.10 to 1.21. The ratio starts near 1.21 in early 2021, experiences minor decreases and recoveries, and ultimately trends slightly downward towards the later periods, reaching close to 1.12 by the third quarter of 2025. This suggests a consistent ability to cover current liabilities with current assets, although a gradual decline could indicate a slight tightening of short-term liquidity.

Quick Ratio

The quick ratio exhibits mild variations, generally maintaining values slightly below or around 1.00. After starting near 1.03 in the first quarter of 2021, the ratio shows small declines particularly around mid-2022, dropping to as low as 0.91 in the third quarter of 2025. These fluctuations indicate a modest decrease in the company's most liquid assets relative to current liabilities, reflecting a somewhat reduced immediate liquidity position over time.

Cash Ratio

The cash ratio demonstrates a more noticeable downward trend across the observed periods. From approximately 0.49 at the beginning of 2021, the ratio decreases steadily, hitting a low of about 0.32 in the second quarter of 2025 before showing a slight rebound to 0.36 by the third quarter of 2025. This represents a reduction in cash and cash equivalents in relation to current liabilities, evidencing increased limitations in the company's pure cash liquidity over the longer term.

Overall, the company's liquidity indicators suggest a stable yet slightly declining capacity to meet short-term obligations. While the current ratio remains above 1.0, indicating an ability to cover current liabilities, both the quick and cash ratios reflect a reduction in liquid assets relative to obligations. This trend may warrant attention to ensure that liquidity remains sufficient to support operations without raising short-term financial risks.

The analysis of the quarterly financial data reveals that current assets and current liabilities have generally exhibited moderate fluctuations over the observed periods. Current assets started at approximately 113.9 billion US dollars in early 2021, experienced a decline through mid-2022, and then showed a gradual recovery and upward movement into 2025, reaching about 130.7 billion US dollars. This pattern indicates a recovery phase following a dip in asset levels during 2021 and early 2022.

Current liabilities demonstrated a somewhat similar pattern but with lesser variability. Beginning at about 94.2 billion US dollars in early 2021, current liabilities decreased to a level near 86.4 billion by mid-2022, followed by a consistent rise toward 116.6 billion by the first quarter of 2025. The increase in liabilities in the later periods reflects a growing obligation level that warrants attention regarding liquidity and operational efficiency.

The current ratio metric, which measures liquidity by comparing current assets to current liabilities, remained relatively stable over the entire period. It generally fluctuated within a narrow band around 1.1 to 1.21, indicating that the company maintained a fairly consistent short-term financial position. However, a slight downward trend is observable from the peak levels seen at around 1.21 in early 2021 to near 1.12 by early 2025. This subtle decline in the current ratio suggests that although the company remained liquid, its cushion above the immediate obligations has slightly diminished over time.

Current Assets Trend

Initial decline in 2021 and early 2022 followed by a recovery and growth through 2025, indicating improved asset management or accumulation.

Current Liabilities Trend

Reduction in mid-2022 followed by a steady increase toward 2025, pointing to rising short-term obligations.

Current Ratio

Generally stable with mild decline over time, reflecting steady but decreasing liquidity margin.

Overall, the financial data suggests a cautious yet stable short-term financial posture with manageable liquidity risk. The slight downward trend in the current ratio alongside rising liabilities in recent quarters suggests that monitoring working capital management will be prudent to ensure continued financial health.

The analysis of the quarterly financial data reveals several noteworthy trends regarding liquidity and short-term financial health over the period analyzed.

Total Quick Assets

The total quick assets fluctuate over the quarters, generally exhibiting an upward trend from early 2023 to the end of 2025. Starting at approximately $94.8 billion in March 2023, quick assets increased to about $109.6 billion by September 2025. This growth indicates a strengthening liquid asset base available to meet immediate obligations.

Current Liabilities

Current liabilities display an overall increasing trend across the same period. Beginning near $95.9 billion in March 2023, liabilities rose to around $116.6 billion by September 2025. This rise in obligations suggests either expansion in operating activities or increased short-term financing needs, potentially impacting liquidity.

Quick Ratio

The quick ratio, a measure of liquid asset coverage of current liabilities, fluctuates slightly below or around 1.0 throughout the periods. It started near 0.99 in March 2023, experienced minor variations, and slightly declined to approximately 0.94 by September 2025. The ratio remains close to but generally below the 1.0 benchmark, indicating that liquid assets are marginally insufficient to cover current liabilities at some points.

In summary, while total quick assets have increased, the concurrent rise in current liabilities has kept the quick ratio relatively stable but slightly below the comfortable threshold of 1. This suggests that although liquidity is improving in absolute terms, the company's short-term financial position remains cautious due to increasing obligations. Continuous monitoring is recommended to ensure that liquidity levels remain adequate to meet short-term debt demands.

The analysis of the quarterly financial data indicates several notable trends in liquidity and short-term financial obligations over the observed periods.

Total Cash Assets

The total cash assets exhibit fluctuations across quarters, with an initial value around $46.1 billion, followed by a general decline into mid-2022, reaching approximately $36.7 billion. This is succeeded by a moderate recovery phase toward the end of 2024 and early 2025, culminating in an increase to around $42.2 billion by the last quarter. This pattern suggests variability in cash holdings, potentially reflecting operational cash flow cycles or strategic cash management practices.

Current Liabilities

Current liabilities demonstrate a generally rising trend over the period. Starting near $94.2 billion, liabilities decreased somewhat until mid-2021, then increased steadily afterward. By early 2023, current liabilities surpassed $100 billion, and continued ascending through the subsequent quarters, eventually reaching approximately $116.6 billion by the conclusion of the data series. This consistent increase indicates growing short-term obligations, which could impact liquidity risk if not matched by corresponding asset growth.

Cash Ratio

The cash ratio, reflecting the company's ability to cover current liabilities with its most liquid assets, shows a declining trajectory. From a peak near 0.55 in late 2021, it steadily decreased to around 0.32 by mid-2025, signifying a reduction in liquidity relative to short-term obligations. The lowest ratios appear in the later periods, indicating increased pressure on liquidity or a strategic choice to maintain lower cash reserves relative to current liabilities.

Overall, the company’s liquidity position, as measured by cash assets relative to current liabilities, has weakened over the analyzed timeframe. While cash assets displayed some recovery trends, the persistent increase in current liabilities caused the liquidity ratios to decline, warranting careful attention to working capital management and future debt servicing capacity.