Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Paying user area
Try for free
Ford Motor Co. pages available for free this week:
- Statement of Comprehensive Income
- Analysis of Liquidity Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Price to FCFE (P/FCFE)
- Capital Asset Pricing Model (CAPM)
- Return on Equity (ROE) since 2005
- Total Asset Turnover since 2005
- Price to Operating Profit (P/OP) since 2005
- Price to Sales (P/S) since 2005
- Aggregate Accruals
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Ford Motor Co. for $24.99.
This is a one-time payment. There is no automatic renewal.
We accept:
Profitability Ratios (Summary)
Ford Motor Co., profitability ratios
Based on: 10-K (reporting date: 2025-12-31), 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).
The profitability metrics demonstrate a period of initial improvement followed by significant volatility and eventual decline. From 2021 to 2022, most ratios increased, suggesting enhanced operational efficiency and profitability. However, subsequent years reveal a weakening performance, culminating in negative values for several key indicators in 2025.
- Gross Profit Margin
- The gross profit margin exhibited a slight increase from 9.20% in 2021 to 9.85% in 2022, indicating improved cost management or pricing strategies. This was followed by a decrease to 9.25% in 2023 and a more substantial decline to 8.26% in 2024. By 2025, the margin became negative at -0.27%, signifying that the cost of goods sold exceeded revenue.
- Operating Profit Margin
- Similar to the gross profit margin, the operating profit margin improved from 3.58% to 4.21% between 2021 and 2022. This positive trend reversed in 2023, falling to 3.29%, and continued downward to 3.02% in 2024. The most significant change occurred in 2025, with the margin plummeting to -5.27%, indicating substantial operational losses.
- Net Profit Margin
- The net profit margin showed the most dramatic fluctuations. A strong value of 14.21% in 2021 was followed by a considerable loss in 2022 (-1.33%). A recovery to 2.62% in 2023 and 3.40% in 2024 was short-lived, as the margin turned negative again in 2025, reaching -4.70%. This suggests significant impacts from factors beyond core operations, such as financing costs or extraordinary items.
- Return on Equity (ROE)
- ROE mirrored the volatility observed in profit margins. It began at a high of 36.97% in 2021, then experienced a substantial decline to -4.58% in 2022. A partial recovery occurred in 2023 (10.16%) and 2024 (13.11%), but ROE fell sharply to -22.76% in 2025, indicating a significant erosion of shareholder value.
- Return on Assets (ROA)
- ROA followed a similar pattern to ROE, though with less extreme values. It decreased from 6.98% in 2021 to -0.77% in 2022, improved to 1.59% in 2023 and 2.06% in 2024, and then declined to -2.83% in 2025. This indicates a diminishing ability to generate profit from its asset base.
Overall, the observed trends suggest a deterioration in profitability and efficiency. While initial improvements were noted, the period from 2022 to 2025 demonstrates increasing financial strain and a concerning trend towards losses. The negative values recorded in 2025 across multiple ratios warrant further investigation to identify the underlying causes and potential mitigation strategies.
Return on Sales
Return on Investment
Gross Profit Margin
Ford Motor Co., gross profit margin calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Gross profit (loss) | ||||||
| Company revenues excluding Ford Credit | ||||||
| Profitability Ratio | ||||||
| Gross profit margin1 | ||||||
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| General Motors Co. | ||||||
| Tesla Inc. | ||||||
Based on: 10-K (reporting date: 2025-12-31), 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).
1 2025 Calculation
Gross profit margin = 100 × Gross profit (loss) ÷ Company revenues excluding Ford Credit
= 100 × ÷ =
2 Click competitor name to see calculations.
The gross profit margin exhibited a generally positive trend initially, followed by a significant decline. Gross profit demonstrated an increasing pattern for three consecutive years before experiencing a substantial loss in the most recent year presented.
- Gross Profit Margin Trend
- The gross profit margin increased from 9.20% in 2021 to 9.85% in 2022, indicating improved profitability from core operations. It remained relatively stable at 9.25% in 2023 before decreasing to 8.26% in 2024. A dramatic shift occurred in 2025, with the gross profit margin falling to -0.27%, signifying a substantial loss on sales.
- Gross Profit Evolution
- Gross profit increased from US$11,617 million in 2021 to US$14,682 million in 2022, and further to US$15,351 million in 2023. A slight decrease to US$14,272 million was observed in 2024. However, in 2025, gross profit reported a loss of US$470 million, a considerable reversal from prior years.
- Revenue Correlation
- Company revenues excluding Ford Credit consistently increased from US$126,268 million in 2021 to US$173,996 million in 2025. Despite this revenue growth, the gross profit margin declined significantly in 2024 and became negative in 2025, suggesting that increasing revenues were not translating into proportional increases in profitability. This indicates potential issues with cost of goods sold or pricing strategies.
The negative gross profit margin in 2025 is a critical development and warrants further investigation to determine the underlying causes, such as increased production costs, unfavorable product mix, or significant pricing pressures.
Operating Profit Margin
Ford Motor Co., operating profit margin calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating income (loss) | ||||||
| Company revenues excluding Ford Credit | ||||||
| Profitability Ratio | ||||||
| Operating profit margin1 | ||||||
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| General Motors Co. | ||||||
| Tesla Inc. | ||||||
| Operating Profit Margin, Sector | ||||||
| Automobiles & Components | ||||||
| Operating Profit Margin, Industry | ||||||
| Consumer Discretionary | ||||||
Based on: 10-K (reporting date: 2025-12-31), 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).
1 2025 Calculation
Operating profit margin = 100 × Operating income (loss) ÷ Company revenues excluding Ford Credit
= 100 × ÷ =
2 Click competitor name to see calculations.
The operating profit margin exhibited a fluctuating pattern over the five-year period. Initial increases were followed by a significant decline in the most recent year presented.
- Operating Profit Margin Trend
- The operating profit margin increased from 3.58% in 2021 to 4.21% in 2022, indicating improved profitability relative to revenue. This positive trend continued, albeit at a slower pace, reaching 3.29% in 2023. A further, albeit slight, decrease was observed in 2024, with the margin falling to 3.02%. However, a substantial decline occurred in 2025, resulting in a negative operating profit margin of -5.27%.
- Relationship to Operating Income
- The increase in operating profit margin between 2021 and 2022 aligns with the growth in operating income, which rose from US$4,523 million to US$6,276 million. While operating income decreased to US$5,458 million in 2023, revenue growth partially offset this, maintaining a positive, though reduced, margin. The slight decrease in operating profit margin in 2024 corresponds with a similar decrease in operating income to US$5,219 million, despite continued revenue growth. The dramatic shift to a negative operating profit margin in 2025 is directly attributable to a significant decrease in operating income, which resulted in an operating loss of US$9,169 million.
- Revenue Impact
- Company revenues excluding Ford Credit consistently increased from US$126,268 million in 2021 to US$173,996 million in 2025. However, revenue growth alone was insufficient to maintain profitability in the face of declining operating income, particularly in 2025. The increasing revenue base did not translate into proportional gains in operating income, ultimately leading to the substantial margin contraction observed in the final year.
The observed trend suggests increasing pressure on profitability, culminating in a loss-making position in 2025 despite continued revenue expansion. Further investigation into the factors driving the decline in operating income is warranted.
Net Profit Margin
Ford Motor Co., net profit margin calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income (loss) attributable to Ford Motor Company | ||||||
| Company revenues excluding Ford Credit | ||||||
| Profitability Ratio | ||||||
| Net profit margin1 | ||||||
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| General Motors Co. | ||||||
| Tesla Inc. | ||||||
| Net Profit Margin, Sector | ||||||
| Automobiles & Components | ||||||
| Net Profit Margin, Industry | ||||||
| Consumer Discretionary | ||||||
Based on: 10-K (reporting date: 2025-12-31), 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).
1 2025 Calculation
Net profit margin = 100 × Net income (loss) attributable to Ford Motor Company ÷ Company revenues excluding Ford Credit
= 100 × ÷ =
2 Click competitor name to see calculations.
The net profit margin exhibited significant fluctuations over the five-year period. Initial profitability was followed by a substantial loss, then a recovery, and ultimately another loss. This volatility suggests sensitivity to underlying business conditions and potentially, significant cost management challenges.
- Net Profit Margin Trend
- In 2021, the net profit margin stood at 14.21%. This represents a strong level of profitability. However, 2022 saw a dramatic decline, resulting in a negative net profit margin of -1.33%, indicating a net loss relative to revenue. A recovery was observed in 2023, with the margin increasing to 2.62%, signaling a return to profitability, albeit at a reduced level. This positive trend continued into 2024, with the margin further improving to 3.40%. However, 2025 witnessed a sharp reversal, with the net profit margin falling to -4.70%, representing a substantial net loss and the lowest value across the observed period.
The correlation between net income and net profit margin is evident. The negative net income figures in 2022 and 2025 directly correspond to the negative net profit margins in those years. Revenue generally increased throughout the period, but this revenue growth was insufficient to maintain profitability, particularly in 2022 and 2025. The increase in revenue from 2021 to 2024 did not translate into proportional increases in net income, suggesting rising costs or pricing pressures.
- Magnitude of Fluctuations
- The range between the highest (14.21% in 2021) and lowest (-4.70% in 2025) net profit margin values is 18.91 percentage points. This wide range underscores the instability of profitability and highlights the potential for significant earnings swings. The shift from positive to negative margins in consecutive years (2024 to 2025) is particularly noteworthy and warrants further investigation.
The observed pattern suggests that while the company is capable of generating substantial revenue, maintaining consistent profitability remains a challenge. Further analysis is needed to determine the underlying drivers of these fluctuations, including cost of goods sold, operating expenses, and external economic factors.
Return on Equity (ROE)
Ford Motor Co., ROE calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income (loss) attributable to Ford Motor Company | ||||||
| Equity attributable to Ford Motor Company | ||||||
| Profitability Ratio | ||||||
| ROE1 | ||||||
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| General Motors Co. | ||||||
| Tesla Inc. | ||||||
| ROE, Sector | ||||||
| Automobiles & Components | ||||||
| ROE, Industry | ||||||
| Consumer Discretionary | ||||||
Based on: 10-K (reporting date: 2025-12-31), 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).
1 2025 Calculation
ROE = 100 × Net income (loss) attributable to Ford Motor Company ÷ Equity attributable to Ford Motor Company
= 100 × ÷ =
2 Click competitor name to see calculations.
The Return on Equity (ROE) exhibited significant fluctuations over the five-year period. Initial values were strong, followed by a substantial decline, a recovery, and then a sharp negative turn. This volatility suggests considerable sensitivity to changes in net income and equity.
- ROE Trend
- In 2021, ROE stood at 36.97%. This was followed by a dramatic decrease to -4.58% in 2022. A recovery was observed in 2023, with ROE increasing to 10.16%, and further improvement in 2024, reaching 13.11%. However, 2025 saw a significant reversal, with ROE plummeting to -22.76%.
- Net Income Influence
- The substantial decline in ROE in 2022 directly correlates with a net loss attributable to the company. Conversely, the positive ROE values in 2023 and 2024 align with periods of positive net income. The negative ROE in 2025 is again linked to a substantial net loss.
- Equity Impact
- Equity attributable to the company decreased from 2021 to 2023, moving from US$48,519 million to US$42,773 million. A slight increase was noted in 2024 (US$44,835 million), but a more pronounced decrease occurred in 2025, falling to US$35,952 million. While equity generally trended downward, the fluctuations in net income appear to be the primary driver of the ROE volatility, as the equity changes were less dramatic than the swings in profitability.
The pronounced negative ROE in the most recent year warrants further investigation into the factors contributing to the significant net loss and the decline in equity. The overall trend indicates a business susceptible to considerable shifts in financial performance.
Return on Assets (ROA)
Ford Motor Co., ROA calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income (loss) attributable to Ford Motor Company | ||||||
| Total assets | ||||||
| Profitability Ratio | ||||||
| ROA1 | ||||||
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| General Motors Co. | ||||||
| Tesla Inc. | ||||||
| ROA, Sector | ||||||
| Automobiles & Components | ||||||
| ROA, Industry | ||||||
| Consumer Discretionary | ||||||
Based on: 10-K (reporting date: 2025-12-31), 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).
1 2025 Calculation
ROA = 100 × Net income (loss) attributable to Ford Motor Company ÷ Total assets
= 100 × ÷ =
2 Click competitor name to see calculations.
The Return on Assets (ROA) exhibited significant fluctuations over the five-year period. Initial profitability, as measured by ROA, was followed by a period of loss and subsequent recovery, ultimately concluding with a negative return. These shifts correlate directly with changes in net income attributable to the company, while total assets remained relatively stable.
- Overall Trend
- The ROA demonstrates a volatile pattern. It began at 6.98% in 2021, declined sharply to -0.77% in 2022, recovered to 1.59% in 2023 and 2.06% in 2024, before falling to -2.83% in 2025. This indicates inconsistent profitability relative to the company’s asset base.
- 2021-2022
- A substantial decrease in ROA occurred between 2021 and 2022. This decline corresponds with a shift from a positive net income of US$17,937 million to a net loss of US$1,981 million. Total assets experienced a minor decrease during this period, but the primary driver of the ROA change was the net income performance.
- 2022-2024
- The period from 2022 to 2024 shows a recovery in ROA. The return moved from a negative value in 2022 to positive values in both 2023 and 2024. This improvement aligns with the return to positive net income during these years. Total assets increased steadily over this timeframe, but the positive net income was the dominant factor in the ROA improvement.
- 2024-2025
- A significant reversal occurred between 2024 and 2025. The ROA decreased from 2.06% to -2.83%. This is directly attributable to a substantial net loss of US$8,182 million in 2025, despite a continued increase in total assets. The negative net income overwhelmed the asset base, resulting in a negative ROA.
In summary, the ROA is highly sensitive to net income fluctuations. While asset levels remained relatively consistent, the profitability of those assets varied considerably, leading to the observed volatility in the ROA.