Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
Ford Motor Co., long-term (investment) activity ratios
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
The analysis of the financial ratios over the five-year period reveals several notable trends in the company's operational efficiency and asset management.
- Net Fixed Asset Turnover
- This ratio shows a consistent upward trajectory, increasing from 3.13 in 2020 to 4.12 in 2024. The steady improvement indicates enhanced efficiency in utilizing fixed assets to generate sales, with the most significant growth occurring between 2021 and 2022. This suggests effective asset management and possibly improved production or sales strategies.
- Net Fixed Asset Turnover Including Operating Lease, Right-of-Use Asset
- Similarly, this ratio exhibits a positive trend, rising from 3.02 in 2020 to 3.9 in 2024. Although the increase is slightly less pronounced compared to the traditional net fixed asset turnover, the pattern mirrors the general enhancement in asset utilization when considering leased assets, reflecting the company's adaptation to lease accounting standards and effective use of leased assets.
- Total Asset Turnover
- There is a clear improvement in total asset turnover, moving from 0.43 in 2020 to 0.61 in 2023 and remaining stable at 0.61 in 2024. This suggests that the company has become more proficient at generating revenue from its total asset base, particularly between 2020 and 2023, after which efficiency plateaus, indicating potential limits to current asset utilization or stable operational scale.
- Equity Turnover
- The equity turnover ratio displays variability over the period. It decreased from 3.78 in 2020 to 2.6 in 2021, indicating a reduction in sales generated per unit of equity. However, it subsequently increased to 3.45 in 2022 and further to 3.88 in 2023, followed by a slight decrease to 3.85 in 2024. This pattern might reflect fluctuating capital structure, changes in equity financing, or variations in sales efficiency relative to shareholders’ equity.
In summary, the company demonstrates a strong and consistent improvement in its fixed asset and total asset utilization over the time frame analyzed. While the equity turnover shows some volatility, it generally recovers after a dip in 2021, aligning with the observed trends in asset turnover ratios. These trends collectively suggest enhanced operational efficiency and effective asset management over recent years.
Net Fixed Asset Turnover
Ford Motor Co., net fixed asset turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Company revenues excluding Ford Credit | 172,706) | 165,901) | 149,079) | 126,268) | 115,941) | |
| Net property | 41,928) | 40,821) | 37,265) | 37,139) | 37,083) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | 4.12 | 4.06 | 4.00 | 3.40 | 3.13 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| General Motors Co. | 3.31 | 3.13 | 3.18 | 2.76 | 2.89 | |
| Tesla Inc. | 2.73 | 3.26 | 3.46 | 2.85 | 2.47 | |
| Net Fixed Asset Turnover, Sector | ||||||
| Automobiles & Components | 3.41 | 3.48 | 3.53 | 3.02 | 2.93 | |
| Net Fixed Asset Turnover, Industry | ||||||
| Consumer Discretionary | 3.22 | 3.50 | 3.47 | 3.31 | 3.37 | |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Net fixed asset turnover = Company revenues excluding Ford Credit ÷ Net property
= 172,706 ÷ 41,928 = 4.12
2 Click competitor name to see calculations.
- Company Revenues Excluding Ford Credit
- The company’s revenues excluding Ford Credit demonstrated a continuous upward trend from 2020 to 2024. Starting at approximately $115.9 billion in 2020, revenues increased steadily each year, reaching around $172.7 billion by 2024. This represents a significant cumulative growth, indicating robust sales performance or successful business expansion over the five-year period.
- Net Property
- The net property value exhibited relative stability with slight incremental increases over the years. Beginning at approximately $37.1 billion in 2020, net property assets rose marginally to about $41.9 billion by 2024. This gradual increase suggests moderate investment or asset appreciation, reflecting steady capital expenditure or property acquisitions without abrupt fluctuations.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio showed a consistent improvement throughout the period. The ratio rose from 3.13 in 2020 to 4.12 in 2024, indicating increasingly efficient utilization of fixed assets to generate revenue. The trend points to enhanced productivity or better asset management, with the company generating more revenue per dollar of fixed assets over time.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Ford Motor Co., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Company revenues excluding Ford Credit | 172,706) | 165,901) | 149,079) | 126,268) | 115,941) | |
| Net property | 41,928) | 40,821) | 37,265) | 37,139) | 37,083) | |
| Operating lease right-of-use assets (included in Other assets) | 2,308) | 1,833) | 1,447) | 1,337) | 1,287) | |
| Net property (including operating lease, right-of-use asset) | 44,236) | 42,654) | 38,712) | 38,476) | 38,370) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 3.90 | 3.89 | 3.85 | 3.28 | 3.02 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| General Motors Co. | 3.25 | 3.07 | 3.11 | 2.69 | 2.81 | |
| Tesla Inc. | 2.38 | 2.85 | 3.12 | 2.58 | 2.20 | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Automobiles & Components | 3.20 | 3.29 | 3.37 | 2.89 | 2.81 | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Consumer Discretionary | 2.51 | 2.68 | 2.66 | 2.51 | 2.57 | |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Company revenues excluding Ford Credit ÷ Net property (including operating lease, right-of-use asset)
= 172,706 ÷ 44,236 = 3.90
2 Click competitor name to see calculations.
- Revenue Trends
- The company experienced a consistent increase in revenues excluding Ford Credit over the five-year period. Revenues rose from $115,941 million in 2020 to $172,706 million in 2024, reflecting a steady upward trajectory, with the most significant annual increase occurring between 2021 and 2022.
- Net Property Values
- Net property values, inclusive of operating lease right-of-use assets, showed a modest but steady growth throughout the period. The value increased from $38,370 million in 2020 to $44,236 million in 2024, with a noticeable acceleration in growth beginning in 2023.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio, which measures the efficiency of the company's use of net fixed assets to generate revenues, demonstrated an improving trend. Starting at 3.02 in 2020, the ratio increased to 3.90 by 2024, indicating enhanced asset utilization efficiency, particularly marked between 2021 and 2022 and maintaining a plateau through 2023 and 2024.
- Overall Insights
- The data reflects a company that is growing its revenues steadily while moderately increasing its asset base. The improvement in net fixed asset turnover suggests that the company is leveraging its fixed assets more effectively to support revenue growth. The relatively higher revenue growth compared to asset growth indicates operational efficiency gains over the analyzed period.
Total Asset Turnover
Ford Motor Co., total asset turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Company revenues excluding Ford Credit | 172,706) | 165,901) | 149,079) | 126,268) | 115,941) | |
| Total assets | 285,196) | 273,310) | 255,884) | 257,035) | 267,261) | |
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | 0.61 | 0.61 | 0.58 | 0.49 | 0.43 | |
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| General Motors Co. | 0.61 | 0.58 | 0.55 | 0.46 | 0.46 | |
| Tesla Inc. | 0.80 | 0.91 | 0.99 | 0.87 | 0.60 | |
| Total Asset Turnover, Sector | ||||||
| Automobiles & Components | 0.64 | 0.64 | 0.62 | 0.52 | 0.46 | |
| Total Asset Turnover, Industry | ||||||
| Consumer Discretionary | 0.94 | 0.97 | 0.96 | 0.88 | 0.84 | |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Total asset turnover = Company revenues excluding Ford Credit ÷ Total assets
= 172,706 ÷ 285,196 = 0.61
2 Click competitor name to see calculations.
- Company Revenues excluding Ford Credit
- The revenue shows a consistent upward trend over the five-year period. Starting at $115,941 million in 2020, revenues increased steadily each year, reaching $172,706 million by 2024. This growth reflects a significant expansion, with a notable acceleration in the increase from 2021 to 2022 and continuing through 2024.
- Total Assets
- Total assets experienced some fluctuation but generally displayed a modest increase over the period. Beginning at $267,261 million in 2020, assets decreased slightly in 2021 and 2022, reaching a low of $255,884 million, before recovering and rising to $285,196 million by 2024. This suggests an initial period of consolidation or asset reduction, followed by renewed asset growth in the later years.
- Total Asset Turnover
- The total asset turnover ratio exhibits a clear improving trend, increasing from 0.43 in 2020 to 0.61 in 2023 and maintaining that level in 2024. This improvement indicates enhanced efficiency in utilizing assets to generate revenues, consistent with the observed revenue growth outpacing the relatively stable asset base towards the end of the period.
Equity Turnover
Ford Motor Co., equity turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Company revenues excluding Ford Credit | 172,706) | 165,901) | 149,079) | 126,268) | 115,941) | |
| Equity attributable to Ford Motor Company | 44,835) | 42,773) | 43,242) | 48,519) | 30,690) | |
| Long-term Activity Ratio | ||||||
| Equity turnover1 | 3.85 | 3.88 | 3.45 | 2.60 | 3.78 | |
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| General Motors Co. | 2.72 | 2.45 | 2.12 | 1.90 | 2.41 | |
| Tesla Inc. | 1.34 | 1.55 | 1.82 | 1.78 | 1.42 | |
| Equity Turnover, Sector | ||||||
| Automobiles & Components | 2.44 | 2.48 | 2.40 | 2.12 | 2.62 | |
| Equity Turnover, Industry | ||||||
| Consumer Discretionary | 3.24 | 3.86 | 4.21 | 3.74 | 4.82 | |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Equity turnover = Company revenues excluding Ford Credit ÷ Equity attributable to Ford Motor Company
= 172,706 ÷ 44,835 = 3.85
2 Click competitor name to see calculations.
- Company Revenues Excluding Ford Credit
- The revenues show a consistent upward trend over the five-year period. Starting at approximately $115.9 billion in 2020, revenues increased steadily to $126.3 billion in 2021, then saw a more significant rise to $149.1 billion in 2022. This growth continued into 2023, reaching $165.9 billion, and further increased to $172.7 billion in 2024. The data indicates strong and sustained revenue growth year-on-year, reflecting expanding operations or increased sales volume during this timeframe.
- Equity Attributable to Ford Motor Company
- Equity levels experienced notable fluctuations within the period. Equity rose substantially from about $30.7 billion in 2020 to a peak of $48.5 billion in 2021. However, a decline followed in 2022 and 2023, with equity falling to approximately $43.2 billion and then slightly further to $42.8 billion. In 2024, equity saw a moderate recovery, increasing to around $44.8 billion. The initial surge may indicate capital injections, retained earnings growth, or revaluation, while the subsequent declines suggest potential distributions, losses, or other equity-reducing factors before partial recovery.
- Equity Turnover Ratio
- The equity turnover ratio demonstrates variability but maintains an overall steady level toward the end of the period. The ratio started at 3.78 in 2020, dropped significantly to 2.6 in 2021, and then increased to 3.45 in 2022. It continued to rise, reaching 3.88 in 2023 and slightly declined to 3.85 in 2024. This pattern suggests that while the efficiency in utilizing equity to generate revenues experienced some initial decline in 2021, it improved significantly afterward, settling near the starting ratio by 2024. The fluctuations reflect changes in the relationship between revenue growth and the equity base over time.