Ford Motor Co. (NYSE:F)

The investment activity ratios demonstrate generally positive trends over the observed period, with some fluctuations. Overall, the company appears to be becoming more efficient in its asset utilization, though recent quarters show some signs of potential shifts. A consistent pattern of improvement was evident through the first three years, followed by more mixed results in the latest year.

Net Fixed Asset Turnover

The net fixed asset turnover ratio exhibited an upward trend from 3.41 in March 2022 to 4.18 in September 2022, indicating increasing efficiency in generating sales from its fixed assets. This trend plateaued through December 2023, remaining relatively stable around 4.0 to 4.1. A slight decline was observed in the first three quarters of 2024, reaching a low of 4.01 in March 2025. However, a significant increase to 4.67 was recorded in December 2025, suggesting a substantial improvement in fixed asset utilization in that quarter.

Total Asset Turnover

The total asset turnover ratio showed a steady increase from 0.49 in March 2022 to 0.61 in September 2023, indicating improved efficiency in utilizing all assets to generate sales. The ratio remained stable at 0.61 through December 2023. A slight decrease to 0.59 was observed in June 2025, but recovered to 0.60 by December 2025, suggesting a resilient asset utilization capability. The overall trend indicates a strengthening ability to generate revenue from its asset base.

Equity Turnover

The equity turnover ratio consistently increased from 2.78 in March 2022 to 3.88 in December 2023, demonstrating a growing ability to generate sales relative to shareholder equity. The ratio experienced a slight decline to 3.81 in March 2025, followed by a rebound to 4.84 in December 2025. This substantial increase in the latest quarter suggests a significant improvement in the return generated for each dollar of equity invested.

In summary, the company generally improved its asset turnover ratios over the period. The recent quarter (December 2025) shows particularly strong performance in all three ratios, potentially indicating successful strategic initiatives or favorable market conditions. Continued monitoring is recommended to determine if these recent improvements are sustainable.

The net fixed asset turnover ratio exhibits a generally positive trend over the observed period, with some fluctuations. Initially, the ratio increased from 3.41 in March 2022 to 4.18 in September 2022, indicating improving efficiency in generating revenue from fixed assets. This upward momentum continued into the first half of 2023, peaking at 4.17 in June 2023.

Overall Trend

From September 2022 through December 2023, the ratio remained relatively stable, fluctuating between 4.00 and 4.18. A slight decline is then observed through March 2025, reaching 3.93. However, a significant increase is noted in December 2025, with the ratio reaching 4.67.

The period between March 2022 and June 2023 demonstrates a consistent increase in the ratio, suggesting enhanced asset utilization. The subsequent stabilization indicates a mature operational level. The dip in the ratio during the first quarter of 2025 could be attributed to various factors, such as increased investment in fixed assets without a corresponding immediate increase in revenue, or a temporary decrease in sales. The substantial increase in December 2025 suggests a significant improvement in revenue generation relative to the fixed asset base during that period.

Quarterly Variations

The largest quarterly increase occurred between March 2022 and June 2022, rising from 3.41 to 3.84. The most significant decrease occurred between September 2024 and March 2025, falling from 4.15 to 4.01. The most substantial increase occurred between September 2025 and December 2025, rising from 3.95 to 4.67.

The ratio’s performance appears to be correlated with revenue fluctuations, though a detailed investigation would be required to establish causality. The substantial increase in the ratio in December 2025 warrants further scrutiny to understand the underlying drivers of this improved asset turnover.

Long-Term Perspective

Over the entire period, the net fixed asset turnover ratio has generally improved, moving from 3.41 to 4.67. This suggests that the company has become more efficient in utilizing its fixed assets to generate revenue. However, the fluctuations highlight the importance of ongoing monitoring and analysis to identify potential areas for improvement.

The total asset turnover ratio exhibits a generally positive trend over the observed period, with some stabilization in recent quarters. Initially, the ratio increased from 0.49 in March 2022 to 0.58 in September 2022, indicating improving efficiency in asset utilization. This upward momentum continued into the first half of 2023, peaking at 0.61 in March 2023.

Overall Trend

From March 2022 through March 2023, the ratio demonstrates a clear increasing trend. This suggests the company became more effective at generating revenue from its asset base. However, the rate of increase slowed considerably after March 2023.

Stabilization and Recent Performance

Following the peak of 0.61 in March 2023, the ratio fluctuated between 0.60 and 0.61 for several quarters, indicating a period of stabilization. The ratio remained at 0.61 for four consecutive quarters, from September 2023 to December 2023. A slight decrease to 0.60 was observed in March 2024, followed by a return to 0.61 in June 2024. The most recent quarters show a slight decline, with the ratio at 0.59 for both September and December 2025.

Long-Term Perspective

Comparing the beginning and end of the period, the ratio increased from 0.49 in March 2022 to 0.60 in December 2025. While the increase is notable, the recent stabilization and slight decline suggest that the initial gains in asset utilization may be leveling off. The ratio remains relatively consistent, indicating a sustained level of efficiency, but further increases appear less probable based on the latest figures.

The observed fluctuations, while relatively small, warrant continued monitoring to determine if the recent downward trend is indicative of a more significant shift in asset utilization efficiency.

The equity turnover ratio for the analyzed period demonstrates a generally increasing trend, with some fluctuations. Initially, the ratio exhibits growth from 2.78 in the first quarter of 2022 to 3.45 by the end of that year. This indicates an improving efficiency in generating revenue from the company’s equity base.

Overall Trend

From the beginning of 2022 through the end of 2023, the equity turnover ratio generally increased, peaking at 3.88 in the fourth quarter of 2023. This suggests a consistent improvement in the company’s ability to generate sales relative to shareholder equity. However, the first quarter of 2025 shows a significant increase to 4.84, representing a substantial shift in this efficiency.

Year-over-Year Changes

Comparing the first quarter of 2022 (2.78) to the first quarter of 2023 (3.68), a notable increase is observed. This suggests a more effective utilization of equity to drive revenue growth. A similar pattern is seen when comparing the first quarter of 2023 to the first quarter of 2024 (3.89), although the increase is less pronounced. The most significant year-over-year change occurs between the first quarters of 2024 and 2025, with the ratio jumping from 3.89 to 4.84.

Recent Performance

The ratio remained relatively stable between the first quarter of 2023 and the fourth quarter of 2024, fluctuating between 3.67 and 3.89. This period indicates a mature and consistent level of revenue generation relative to equity. The substantial increase to 4.84 in the first quarter of 2025 is a significant departure from this stability and warrants further investigation to understand the underlying drivers.

The observed trend suggests that the company has been increasingly effective at utilizing shareholder equity to generate revenue. The recent surge in the equity turnover ratio in the first quarter of 2025 is particularly noteworthy and could be attributed to factors such as increased sales volume, improved operational efficiency, or a reduction in equity.