Ford Motor Co. (NYSE:F)

Debt to Equity

The debt to equity ratio exhibits a general downward trend from March 2020 (5.64) to December 2021 (2.85), indicating a reduction in reliance on debt compared to equity during this period. From early 2022 onwards, the ratio stabilizes around the mid-3.0 range with minor fluctuations, ending close to 3.5 by June 2025. This suggests a moderation in leverage with some tendency towards a slight increase in debt relative to equity in recent quarters.

Debt to Capital

The debt to capital ratio decreases gradually from 0.85 in early 2020 to a low of 0.74 in mid-2021, reflecting a reduction in the proportion of capital financed by debt. Afterward, it remains relatively constant around 0.75 to 0.78, indicating stabilized capital structure with a consistent moderate level of debt financing across recent years.

Debt to Assets

This ratio declines from 0.63 in March 2020 to approximately 0.52 in mid-2022, indicating a reduction in the share of assets financed through debt. It then fluctuates slightly but stays near the 0.54 to 0.56 range, implying a stable debt-financed asset base. The ratio shows a slight upward tendency towards the end of the period, reaching 0.54 by mid-2025.

Financial Leverage

Starting at a high level of 8.91 in March 2020, the financial leverage ratio exhibits a marked decrease to 5.3 by December 2021, indicating a lowering of overall leverage or equity dilution effects. Subsequently, it fluctuates moderately in the mid-5 to mid-6 range through 2024 and 2025, suggesting moderate and steady leverage with some minor increases in recent periods.

Interest Coverage

Interest coverage shows considerable volatility during the available periods. From a low of 0.32 in September 2020, it jumps notably to a peak of 10.86 in December 2020, indicating strong earnings relative to interest expenses. However, there is a sharp decline to negative -1.4 in December 2022, reflecting an inability to cover interest expenses at that time. After this trough, the ratio recovers to positive levels ranging between 3.38 and 7.49 across 2023 to mid-2025, which indicates improving but variable capacity to meet interest obligations.

Overall Trends and Insights

The debt-related ratios collectively illustrate a deliberate deleveraging trend through 2020 and 2021, with subsequent stabilization at moderate levels of debt reliance. The initial high leverage ratios suggest previous elevated borrowing or equity impacts, followed by correction and normalization. The interest coverage fluctuations highlight periods of both strong and challenged earnings relative to interest costs, with recovery signs after late 2022 difficulties. Taken together, these patterns suggest managing leverage prudently while contending with earnings variability affecting debt service capabilities.

Total Debt

The total debt demonstrates a fluctuating but generally downward trend from March 2020 through June 2022, starting at approximately 167 billion USD and declining to around 128.8 billion USD. However, beginning in late 2022 and continuing through 2023 and into 2024, total debt shows signs of rising again, reaching close to 157.7 billion USD by June 2025. There is a notable dip in 2021, where debt declines steadily, followed by a reversal in trend with debt increasing in late 2022 and beyond.

Equity attributable to Ford Motor Company

Equity shows an overall increasing pattern with some volatility. Initially, it rises gradually from about 29.7 billion USD in March 2020 to a peak near 48.5 billion USD by December 2021. Following this peak, equity decreases slightly through 2022 but stabilizes and remains around the low 40 billion USD range throughout 2023 and into mid-2024. By mid-2025, equity levels appear to maintain a steady but modest upward trend, ending near 45 billion USD. The sharp increase toward the end of 2021 is a key observation.

Debt to Equity Ratio

The debt-to-equity ratio starts very high in early 2020, above 5.6, indicating substantial leverage. This ratio declines significantly during 2020 and 2021, falling to a low near 2.85 by December 2021, reflecting an improving balance between debt and equity, likely due to rising equity and decreasing debt levels. Post-2021, the ratio increases moderately, generally fluctuating between 3.0 and 3.55 through mid-2025. This suggests a moderate worsening in leverage but still better relative to the early 2020 period.

Overall Analysis

From early 2020 through 2021, the financial leverage showed a clear improvement driven by both reduction in debt and an increase in equity. The period following 2021 is characterized by a gradual reversal of this trend, with rising debt levels and a reduction in equity gains, leading to a moderately increased debt-to-equity ratio. Despite this, leverage remains considerably lower than the peak levels observed in early 2020. The most remarkable financial event within the data is the significant equity growth during late 2021, which substantially improved the capital structure at that time. The subsequent years indicate some re-leveraging but still maintain a relatively balanced financial position compared to the prior peak condition.

The data reveals several notable trends in the company's financial leverage and capital structure over the observed periods.

Total Debt

Total debt initially demonstrates variability, with a peak around mid-2020 reaching approximately 175 billion US dollars, followed by a general declining trend until early 2022 where it reaches around 128 billion US dollars. However, from 2022 onwards, there is a gradual increase in total debt, reaching approximately 158 billion US dollars by mid-2025. This indicates that while the company reduced debt significantly after 2020, it resumed leveraging more debt in the most recent periods.

Total Capital

Total capital mirrors a somewhat similar pattern, starting near 197 billion US dollars in early 2020, increasing slightly by mid-2020, and then decreasing steadily to around 170 billion US dollars at the end of 2021 and early 2022. After that, total capital shows a recovery trend, rising gradually back to about 203 billion US dollars by mid-2025. This suggests an overall strengthening of the capital base after a trough period in late 2021 and early 2022.

Debt to Capital Ratio

The debt to capital ratio remains relatively high and stable throughout the entire timeline, consistently hovering around 0.74 to 0.85. Initially, this ratio is at an elevated level of approximately 0.85 through early 2020, signaling a high reliance on debt financing. It then gradually declines to a low of roughly 0.74 in early 2022, corresponding with the period of reduced total debt and capital. Subsequently, the ratio increases steadily to stabilize near 0.78 from late 2022 onward. This stability indicates a consistent capital structure strategy focusing on maintaining a debt-heavy balance sheet within a narrow range in recent years.

In summary, the financial data illustrates a phase of significant debt reduction and capital base contraction during 2020 to early 2022, followed by a period of gradual recovery and re-leveraging. The company's leverage ratio remains relatively high but stable, pointing to a persistent preference for debt as a component of capital structure throughout the period under review.

Total Debt

The total debt shows a fluctuating but generally declining trend from March 31, 2020, to around September 30, 2022. Starting at approximately 167 billion US dollars, it decreases to about 128 billion by mid-2022. However, from late 2022 onwards, the total debt rises again, reaching values around 157 billion to 158 billion by mid-2025. This indicates a period of debt reduction followed by increased borrowing or debt accumulation in the later periods.

Total Assets

Total assets exhibit relative stability with some moderate fluctuations throughout the observed periods. The asset base begins at roughly 264 billion US dollars in early 2020, dipping slightly during 2021, but then gradually increasing from early 2022 onwards. By mid-2025, total assets reach nearly 293 billion US dollars. This indicates a slow but steady growth in asset holdings after an initial period of minor decline.

Debt to Assets Ratio

The debt to assets ratio declines from 0.63 in March 2020 to a low near 0.52 by mid to late 2022, reflecting a reduction in leverage relative to asset size. After this trough, the ratio stabilizes and slightly increases to a range of approximately 0.54 to 0.56 through 2023 to mid-2025. Overall, the company reduced its relative indebtedness in the early years but has maintained a moderately stable leverage situation thereafter.

Summary of Trends

The analyzed data reveal a strategic deleveraging phase from early 2020 to mid-2022, with simultaneous modest asset base fluctuation, indicating efforts to strengthen the balance sheet. In the subsequent periods, both total debt and total assets increase, with the debt to assets ratio stabilizing slightly above the mid-2020s lows. This pattern suggests a cautious return to higher debt usage balanced by asset accumulation. The leverage remains moderately high but under controlled stability, reflecting balanced financial management in a changing environment.

Total Assets

Total assets show fluctuations over the observed period, starting at approximately 264.1 billion USD in the first quarter of 2020. There is a slight decline through mid-2021, reaching a low around 248.5 billion USD in June 2021. Subsequently, assets recover steadily through late 2021 into 2022, fluctuating between 245.8 billion USD and 256.8 billion USD. From early 2023 onwards, total assets exhibit an upward trajectory, reaching the highest value observed—approximately 292.7 billion USD—in the fourth quarter of 2025. Overall, despite mid-period volatility, total assets demonstrate moderate growth in the long term.

Equity Attributable to Ford Motor Company

Equity attributable to the company displays an increasing trend initially from about 29.7 billion USD in early 2020 to a peak near 48.5 billion USD by December 2021. Following this peak, equity values decrease somewhat throughout 2022, falling to approximately 42.1 billion USD by the third quarter of that year. From the end of 2022 through 2025, equity fluctuates in a relatively narrow range between 42.3 billion USD and 45.1 billion USD, reflecting a period of relative stability compared to earlier sharp increases. This pattern suggests gains in equity early in the period were moderated by later fluctuations, resulting in modest net growth.

Financial Leverage

Financial leverage starts at a high of 8.91 in the first quarter of 2020, then generally decreases through to the fourth quarter of 2021, reaching a low point of approximately 5.3. This indicates a reduction in the ratio of total assets to equity during this interval and suggests a strengthening equity base relative to the asset size. Post-2021, financial leverage exhibits moderate oscillations, generally remaining around the 6.0 range through the end of 2025, fluctuating between approximately 5.6 and 6.5. The pattern indicates that the company stabilized its capital structure after a period of deleveraging, maintaining a consistent leverage profile in the later periods.

Overall Observations

The data reflect a period marked by significant operational and financial adjustments. Asset sizing shows resilience and gradual recovery after initial contraction, while equity experienced substantial growth early on, followed by stabilization in later years. The decline in financial leverage during 2020-2021 suggests an intentional shift toward a stronger equity position relative to assets, possibly to improve financial stability or creditworthiness. The later stabilization of leverage indicates a balanced approach toward financing and risk management. These trends collectively point to adaptive financial management aiming to balance growth and stability across the analyzed timeframe.

Earnings before interest and tax (EBIT)

The EBIT values exhibit considerable volatility across the observed quarters. There are instances of notable losses, such as in March 31, 2020 (-919 million USD), December 31, 2020 (-3336 million USD), March 31, 2022 (-3540 million USD), and December 31, 2023 (-1501 million USD). Conversely, there are quarters with strong positive EBIT, exemplified by peaks at December 31, 2021 (11656 million USD) and June 30, 2023 (2592 million USD). The overall pattern suggests irregular fluctuations, with periodic recoveries following substantial negative results. The latter part of the series shows moderate positive EBIT values with occasional downturns but does not return to extremes observed previously.

Interest expense on Company debt excluding Ford Credit

Interest expense on company debt remains relatively stable over the time frame, fluctuating modestly between approximately 227 million USD and 474 million USD in the earlier periods, with a slight general downward trend after 2021. Values mostly range between 270 million and 324 million USD in the more recent quarters, indicating controlled borrowing costs and limited variation in interest expense despite fluctuations in EBIT.

Interest coverage ratio

The interest coverage ratio, indicating the ability to cover interest expenses with EBIT, reflects the volatility observed in EBIT data. The ratio shows progression from very low or missing values early on to a peak of 10.86 at December 31, 2021, suggesting strong earnings in relation to interest obligations at that time. Subsequent quarters reveal a decline but maintain coverage ratios mostly above 3, indicating reasonable interest coverage. Negative or below one coverage values (e.g., -1.4 at March 31, 2023) coincide with negative EBIT values, signaling periods of financial strain. Overall, the coverage stabilizes into a moderate range towards the end of the timeline but does not return to the high peak noted in late 2021.

Summary Insights

The data illustrates a pattern of significant EBIT volatility with intermittent sharp losses and gains, reflecting operational or market challenges and recoveries during the period. Despite these fluctuations, interest expenses remain relatively steady, denoting consistent debt servicing costs. The interest coverage ratio aligns with fluctuations in EBIT, with periods of both strong coverage and financial stress. The overall financial condition appears to experience cycles of volatility but maintains sufficient earnings relative to interest expense in most recent quarters, though not as robust as the strongest historical point observed.