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Long-term (Investment) Activity Analysis

Difficulty: Beginner

Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.


Ratios (Summary)

Ford Motor Co., long-term (investment) activity ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Net fixed asset turnover 4.12 4.41 4.66 4.51 5.05
Total asset turnover 0.56 0.59 0.62 0.65 0.69
Equity turnover 4.17 4.85 4.91 5.47 5.28

Source: Based on data from Ford Motor Co. Annual Reports

Ratio Description The company
Net fixed asset turnover An activity ratio calculated as total revenue divided by net fixed assets. Ford Motor Co.'s net fixed asset turnover deteriorated from 2015 to 2016 and from 2016 to 2017.
Total asset turnover An activity ratio calculated as total revenue divided by total assets. Ford Motor Co.'s total asset turnover deteriorated from 2015 to 2016 and from 2016 to 2017.
Equity turnover An activity ratio calculated as total revenue divided by shareholders' equity. Ford Motor Co.'s equity turnover deteriorated from 2015 to 2016 and from 2016 to 2017.

Net Fixed Asset Turnover

Ford Motor Co., net fixed asset turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Selected Financial Data (USD $ in millions)
Automotive sales 145,653  141,546  140,566  135,782  139,369 
Net property 35,327  32,072  30,163  30,126  27,616 
Ratio
Net fixed asset turnover1 4.12 4.41 4.66 4.51 5.05
Benchmarks
Net Fixed Asset Turnover, Competitors
General Motors Co. 3.68 4.38 4.67 5.45 5.88
Net Fixed Asset Turnover, Sector
Automobiles & Parts 3.90 4.40 4.67 4.96 5.45
Net Fixed Asset Turnover, Industry
Consumer Goods 4.24 4.52 4.64 4.75 4.86

Source: Based on data from Ford Motor Co. Annual Reports

2017 Calculations

1 Net fixed asset turnover = Automotive sales ÷ Net property
= 145,653 ÷ 35,327 = 4.12

Ratio Description The company
Net fixed asset turnover An activity ratio calculated as total revenue divided by net fixed assets. Ford Motor Co.'s net fixed asset turnover deteriorated from 2015 to 2016 and from 2016 to 2017.

Total Asset Turnover

Ford Motor Co., total asset turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Selected Financial Data (USD $ in millions)
Automotive sales 145,653  141,546  140,566  135,782  139,369 
Total assets 257,808  237,951  224,925  208,527  202,026 
Ratio
Total asset turnover1 0.56 0.59 0.62 0.65 0.69
Benchmarks
Total Asset Turnover, Competitors
General Motors Co. 0.63 0.71 0.75 0.85 0.91
Total Asset Turnover, Sector
Automobiles & Parts 0.59 0.65 0.68 0.74 0.79
Total Asset Turnover, Industry
Consumer Goods 0.62 0.65 0.68 0.78 0.79

Source: Based on data from Ford Motor Co. Annual Reports

2017 Calculations

1 Total asset turnover = Automotive sales ÷ Total assets
= 145,653 ÷ 257,808 = 0.56

Ratio Description The company
Total asset turnover An activity ratio calculated as total revenue divided by total assets. Ford Motor Co.'s total asset turnover deteriorated from 2015 to 2016 and from 2016 to 2017.

Equity Turnover

Ford Motor Co., equity turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Selected Financial Data (USD $ in millions)
Automotive sales 145,653  141,546  140,566  135,782  139,369 
Equity attributable to Ford Motor Company 34,890  29,170  28,642  24,805  26,383 
Ratio
Equity turnover1 4.17 4.85 4.91 5.47 5.28
Benchmarks
Equity Turnover, Competitors
General Motors Co. 3.81 3.58 3.66 4.26 3.57
Equity Turnover, Sector
Automobiles & Parts 3.99 4.09 4.18 4.76 4.22
Equity Turnover, Industry
Consumer Goods 2.57 2.67 2.68 3.28 2.86

Source: Based on data from Ford Motor Co. Annual Reports

2017 Calculations

1 Equity turnover = Automotive sales ÷ Equity attributable to Ford Motor Company
= 145,653 ÷ 34,890 = 4.17

Ratio Description The company
Equity turnover An activity ratio calculated as total revenue divided by shareholders' equity. Ford Motor Co.'s equity turnover deteriorated from 2015 to 2016 and from 2016 to 2017.