Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Ford Motor Co., profitability ratios
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Ford Motor Co. gross profit margin ratio improved from 2020 to 2021 and from 2021 to 2022. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Ford Motor Co. operating profit margin ratio improved from 2020 to 2021 and from 2021 to 2022. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Ford Motor Co. net profit margin ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Ford Motor Co. ROE improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Ford Motor Co. ROA improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Gross Profit Margin
Ford Motor Co., gross profit margin calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Gross profit | 14,583) | 11,499) | 3,133) | 8,906) | 12,025) | |
| Automotive revenues | 148,980) | 126,150) | 115,885) | 143,599) | 148,294) | |
| Profitability Ratio | ||||||
| Gross profit margin1 | 9.79% | 9.12% | 2.70% | 6.20% | 8.11% | |
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| General Motors Co. | 11.87% | 11.49% | 10.25% | 9.82% | 9.31% | |
| Tesla Inc. | 25.60% | 25.28% | 21.02% | 16.56% | 18.83% | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Gross profit margin = 100 × Gross profit ÷ Automotive revenues
= 100 × 14,583 ÷ 148,980 = 9.79%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Ford Motor Co. gross profit margin ratio improved from 2020 to 2021 and from 2021 to 2022. |
Operating Profit Margin
Ford Motor Co., operating profit margin calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating income (loss) | 6,276) | 4,523) | (4,408) | 574) | 3,203) | |
| Automotive revenues | 148,980) | 126,150) | 115,885) | 143,599) | 148,294) | |
| Profitability Ratio | ||||||
| Operating profit margin1 | 4.21% | 3.59% | -3.80% | 0.40% | 2.16% | |
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| General Motors Co. | 7.16% | 8.21% | 6.10% | 4.47% | 3.34% | |
| Tesla Inc. | 16.76% | 12.12% | 6.32% | -0.28% | -1.81% | |
| Operating Profit Margin, Sector | ||||||
| Automobiles & Components | 8.08% | 6.94% | 1.65% | 2.06% | 2.40% | |
| Operating Profit Margin, Industry | ||||||
| Consumer Discretionary | 7.91% | 8.26% | 5.75% | 7.48% | 7.98% | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Operating profit margin = 100 × Operating income (loss) ÷ Automotive revenues
= 100 × 6,276 ÷ 148,980 = 4.21%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Ford Motor Co. operating profit margin ratio improved from 2020 to 2021 and from 2021 to 2022. |
Net Profit Margin
Ford Motor Co., net profit margin calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income (loss) attributable to Ford Motor Company | (1,981) | 17,937) | (1,279) | 47) | 3,677) | |
| Automotive revenues | 148,980) | 126,150) | 115,885) | 143,599) | 148,294) | |
| Profitability Ratio | ||||||
| Net profit margin1 | -1.33% | 14.22% | -1.10% | 0.03% | 2.48% | |
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| General Motors Co. | 6.90% | 8.82% | 5.91% | 5.49% | 6.02% | |
| Tesla Inc. | 15.41% | 10.25% | 2.29% | -3.51% | -4.55% | |
| Net Profit Margin, Sector | ||||||
| Automobiles & Components | 5.48% | 11.40% | 2.29% | 2.03% | 3.54% | |
| Net Profit Margin, Industry | ||||||
| Consumer Discretionary | 4.59% | 8.33% | 4.48% | 5.85% | 6.21% | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Net profit margin = 100 × Net income (loss) attributable to Ford Motor Company ÷ Automotive revenues
= 100 × -1,981 ÷ 148,980 = -1.33%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Ford Motor Co. net profit margin ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Return on Equity (ROE)
Ford Motor Co., ROE calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income (loss) attributable to Ford Motor Company | (1,981) | 17,937) | (1,279) | 47) | 3,677) | |
| Equity attributable to Ford Motor Company | 43,242) | 48,519) | 30,690) | 33,185) | 35,932) | |
| Profitability Ratio | ||||||
| ROE1 | -4.58% | 36.97% | -4.17% | 0.14% | 10.23% | |
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| General Motors Co. | 14.65% | 16.77% | 14.27% | 16.11% | 20.62% | |
| Tesla Inc. | 28.09% | 18.28% | 3.24% | -13.03% | -19.83% | |
| ROE, Sector | ||||||
| Automobiles & Components | 13.17% | 24.18% | 5.99% | 7.25% | 13.44% | |
| ROE, Industry | ||||||
| Consumer Discretionary | 19.85% | 31.42% | 20.18% | 30.14% | 30.51% | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
ROE = 100 × Net income (loss) attributable to Ford Motor Company ÷ Equity attributable to Ford Motor Company
= 100 × -1,981 ÷ 43,242 = -4.58%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Ford Motor Co. ROE improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Return on Assets (ROA)
Ford Motor Co., ROA calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income (loss) attributable to Ford Motor Company | (1,981) | 17,937) | (1,279) | 47) | 3,677) | |
| Total assets | 255,884) | 257,035) | 267,261) | 258,537) | 256,540) | |
| Profitability Ratio | ||||||
| ROA1 | -0.77% | 6.98% | -0.48% | 0.02% | 1.43% | |
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| General Motors Co. | 3.76% | 4.09% | 2.73% | 2.95% | 3.53% | |
| Tesla Inc. | 15.25% | 8.88% | 1.38% | -2.51% | -3.28% | |
| ROA, Sector | ||||||
| Automobiles & Components | 3.41% | 5.94% | 1.06% | 1.14% | 2.09% | |
| ROA, Industry | ||||||
| Consumer Discretionary | 4.42% | 7.38% | 3.75% | 5.50% | 5.97% | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
ROA = 100 × Net income (loss) attributable to Ford Motor Company ÷ Total assets
= 100 × -1,981 ÷ 255,884 = -0.77%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Ford Motor Co. ROA improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |