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: 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).
- Gross Profit Margin
- The gross profit margin demonstrated a notable improvement from 2.75% in 2020 to a peak of 9.85% in 2022. Following this peak, there was a slight decline in the subsequent years, with margin values of 9.25% in 2023 and 8.26% in 2024, indicating some pressure on cost management or pricing strategies over the last two years.
- Operating Profit Margin
- Operating profitability showed a transition from negative territory in 2020 (-3.8%) to positive figures from 2021 onward. It rose to 4.21% in 2022, followed by a gradual reduction to 3.29% in 2023 and 3.02% in 2024. Despite the decline in recent years, operating profitability remained positive, suggesting improved operational efficiency compared to earlier periods.
- Net Profit Margin
- Net profit margin exhibited significant volatility across the years. After a negative margin of -1.1% in 2020, it increased sharply to 14.21% in 2021. However, this was followed by a considerable drop to -1.33% in 2022. The margin recovered moderately in the following two years, reaching 2.62% in 2023 and improving further to 3.4% in 2024. This pattern reflects fluctuations in overall profitability possibly influenced by non-operating factors or extraordinary items.
- Return on Equity (ROE)
- Return on equity displayed extreme fluctuations, starting from a negative -4.17% in 2020, then soaring to 36.97% in 2021. The subsequent year saw a reversal to -4.58%, followed by improvements to 10.16% in 2023 and 13.11% in 2024. The volatile nature of ROE may indicate changes in net income relative to equity, influenced by earnings variability or shifts in capital structure.
- Return on Assets (ROA)
- Return on assets closely mirrored the net margin and ROE trends but with more moderated fluctuations. It increased from -0.48% in 2020 to 6.98% in 2021, dropped to -0.77% in 2022, then gradually climbed to 1.59% in 2023 and 2.06% in 2024. These figures suggest improving asset utilization following a period of negative returns.
Return on Sales
Return on Investment
Gross Profit Margin
Ford Motor Co., gross profit margin 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) | ||||||
| Gross profit | 14,272) | 15,351) | 14,682) | 11,617) | 3,189) | |
| Company revenues excluding Ford Credit | 172,706) | 165,901) | 149,079) | 126,268) | 115,941) | |
| Profitability Ratio | ||||||
| Gross profit margin1 | 8.26% | 9.25% | 9.85% | 9.20% | 2.75% | |
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| General Motors Co. | 11.97% | 10.36% | 11.87% | 11.49% | 10.25% | |
| Tesla Inc. | 17.86% | 18.25% | 25.60% | 25.28% | 21.02% | |
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
Gross profit margin = 100 × Gross profit ÷ Company revenues excluding Ford Credit
= 100 × 14,272 ÷ 172,706 = 8.26%
2 Click competitor name to see calculations.
- Gross Profit
- The gross profit demonstrates a clear upward trend from 2020 through 2023, rising sharply from $3,189 million to a peak of $15,351 million. This increase illustrates significant growth in profitability over this period. However, in 2024, there is a noticeable decline to $14,272 million, suggesting a decrease in the total gross profit generated compared to the previous year.
- Company Revenues Excluding Ford Credit
- Company revenues show consistent growth throughout all periods, increasing steadily from $115,941 million in 2020 to $172,706 million in 2024. This uninterrupted rise indicates expanding sales or service outputs over the observed years.
- Gross Profit Margin
- The gross profit margin follows an improving trend initially, increasing significantly from 2.75% in 2020 to a peak of 9.85% in 2022. It then declines gradually to 9.25% in 2023 and further to 8.26% in 2024. Despite this recent downward movement, margins remain substantially higher than the 2020 level, indicating improved efficiency or pricing power over the long term, although some pressure appears to have emerged in the latest years.
- Overall Summary
- The analysis reveals that the company experienced robust revenue growth and strong gains in gross profit through 2023, which was accompanied by a marked improvement in gross profit margins. The subsequent slight reduction in both gross profit and margin in 2024 suggests emerging challenges such as increased costs or pricing pressures. Nevertheless, the overall financial performance remains positive, reflecting significant growth over the five-year period.
Operating Profit Margin
Ford Motor Co., operating profit margin calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating income (loss) | 5,219) | 5,458) | 6,276) | 4,523) | (4,408) | |
| Company revenues excluding Ford Credit | 172,706) | 165,901) | 149,079) | 126,268) | 115,941) | |
| Profitability Ratio | ||||||
| Operating profit margin1 | 3.02% | 3.29% | 4.21% | 3.58% | -3.80% | |
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| General Motors Co. | 7.45% | 5.90% | 7.16% | 8.21% | 6.10% | |
| Tesla Inc. | 7.24% | 9.19% | 16.76% | 12.12% | 6.32% | |
| Operating Profit Margin, Sector | ||||||
| Automobiles & Components | 5.67% | 5.63% | 8.08% | 6.94% | 1.65% | |
| Operating Profit Margin, Industry | ||||||
| Consumer Discretionary | 11.04% | 9.12% | 8.47% | 8.79% | 6.48% | |
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
Operating profit margin = 100 × Operating income (loss) ÷ Company revenues excluding Ford Credit
= 100 × 5,219 ÷ 172,706 = 3.02%
2 Click competitor name to see calculations.
- Operating Income (Loss)
- The operating income exhibited a significant turnaround from a substantial loss of $4,408 million in 2020 to positive values in subsequent years. In 2021, operating income rose sharply to $4,523 million, continuing to increase to $6,276 million in 2022. However, a declining trend emerged in 2023 and 2024, with operating income decreasing to $5,458 million and $5,219 million respectively, indicating some reduction in profitability during the most recent periods.
- Company Revenues Excluding Ford Credit
- Revenues demonstrated a consistent upward trajectory throughout the period. Starting at $115,941 million in 2020, revenues increased steadily each year, reaching $126,268 million in 2021, $149,079 million in 2022, $165,901 million in 2023, and $172,706 million in 2024. This reflects sustained growth in the company’s core business activities over the five-year span.
- Operating Profit Margin
- The operating profit margin mirrored the changes in operating income, shifting from negative to positive territory after 2020. The margin was -3.8% in 2020, then improved to 3.58% in 2021 and further to 4.21% in 2022, reflecting increasing operational efficiency and profitability. Nevertheless, similar to operating income, the margin declined in the last two years, falling to 3.29% in 2023 and 3.02% in 2024, suggesting a slight erosion in profit margins despite increasing revenue.
- Overall Observations
- Despite initial challenges reflected by a negative operating income and margin in 2020, the company achieved a marked recovery and growth in subsequent years. Revenue growth was strong and consistent, indicating expanding sales or improved business volume. However, the reduction in operating income and margin in the most recent two years signals potential cost pressures or margins being squeezed even as revenues continued to grow. The combination of these trends highlights both the successful scaling of operations and emerging challenges in maintaining profitability at the same growth pace.
Net Profit Margin
Ford Motor Co., net profit margin calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income (loss) attributable to Ford Motor Company | 5,879) | 4,347) | (1,981) | 17,937) | (1,279) | |
| Company revenues excluding Ford Credit | 172,706) | 165,901) | 149,079) | 126,268) | 115,941) | |
| Profitability Ratio | ||||||
| Net profit margin1 | 3.40% | 2.62% | -1.33% | 14.21% | -1.10% | |
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| General Motors Co. | 3.50% | 6.42% | 6.90% | 8.82% | 5.91% | |
| Tesla Inc. | 7.26% | 15.50% | 15.41% | 10.25% | 2.29% | |
| Net Profit Margin, Sector | ||||||
| Automobiles & Components | 4.29% | 7.01% | 5.48% | 11.40% | 2.29% | |
| Net Profit Margin, Industry | ||||||
| Consumer Discretionary | 8.74% | 7.92% | 5.15% | 9.20% | 5.24% | |
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 profit margin = 100 × Net income (loss) attributable to Ford Motor Company ÷ Company revenues excluding Ford Credit
= 100 × 5,879 ÷ 172,706 = 3.40%
2 Click competitor name to see calculations.
The financial data reveals notable fluctuations in profitability and steady growth in revenues over the reviewed periods.
- Net income (loss) attributable to Ford Motor Company
- The net income exhibited significant volatility. The company experienced a substantial loss of 1,279 million USD in the year ending 2020, followed by a remarkable turnaround to a profit of 17,937 million USD in 2021. However, this was not sustained, as shown by a return to a loss of 1,981 million USD in 2022. Subsequently, the company regained profitability, recording net incomes of 4,347 million USD in 2023 and 5,879 million USD in 2024, indicating a recovery trend.
- Company revenues excluding Ford Credit
- Revenues increased consistently over the five-year period. Starting from 115,941 million USD in 2020, revenues rose steadily each year to reach 172,706 million USD in 2024. This steady revenue growth suggests expanding sales or improved market presence despite fluctuations in profitability.
- Net profit margin
- The net profit margin mirrored the variability seen in net income. The margin was negative at -1.1% in 2020, sharply increased to a strong positive 14.21% in 2021, and then declined again to -1.33% in 2022. In the following years, the margin improved gradually to 2.62% in 2023 and 3.4% in 2024. These margins indicate difficulties in maintaining consistent profitability despite revenue gains.
Return on Equity (ROE)
Ford Motor Co., ROE 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) | ||||||
| Net income (loss) attributable to Ford Motor Company | 5,879) | 4,347) | (1,981) | 17,937) | (1,279) | |
| Equity attributable to Ford Motor Company | 44,835) | 42,773) | 43,242) | 48,519) | 30,690) | |
| Profitability Ratio | ||||||
| ROE1 | 13.11% | 10.16% | -4.58% | 36.97% | -4.17% | |
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| General Motors Co. | 9.53% | 15.75% | 14.65% | 16.77% | 14.27% | |
| Tesla Inc. | 9.73% | 23.94% | 28.09% | 18.28% | 3.24% | |
| ROE, Sector | ||||||
| Automobiles & Components | 10.50% | 17.37% | 13.17% | 24.18% | 5.99% | |
| ROE, Industry | ||||||
| Consumer Discretionary | 28.36% | 30.61% | 21.65% | 34.37% | 25.29% | |
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
ROE = 100 × Net income (loss) attributable to Ford Motor Company ÷ Equity attributable to Ford Motor Company
= 100 × 5,879 ÷ 44,835 = 13.11%
2 Click competitor name to see calculations.
- Net Income (Loss) Attributable to Ford Motor Company
- The net income figures demonstrate significant volatility over the observed period. In 2020, a net loss of 1,279 million US dollars was reported, followed by a notable recovery in 2021 with a substantial profit of 17,937 million US dollars. However, this positive trend reversed in 2022, with the company returning to a net loss of 1,981 million US dollars. The subsequent years, 2023 and 2024, indicate a resumption of profitability, with net incomes of 4,347 million and 5,879 million US dollars, respectively, reflecting a gradual improvement in the company's earnings performance.
- Equity Attributable to Ford Motor Company
- The equity attributable to the company shows a general upward trend, increasing from 30,690 million US dollars in 2020 to 48,519 million US dollars in 2021. However, it declined to 43,242 million US dollars in 2022 and remained relatively stable thereafter, with slight fluctuations observed in 2023 (42,773 million US dollars) and an increase to 44,835 million US dollars in 2024. Overall, equity exhibits some variability but maintains a relatively high base compared to the beginning of the period.
- Return on Equity (ROE)
- ROE follows a pattern consistent with the fluctuations in net income. Negative returns were recorded in 2020 (-4.17%) and 2022 (-4.58%), corresponding with the years of net losses. In contrast, 2021 saw a sharp improvement to 36.97%, coinciding with the significant net profit during that year. Subsequent recovery is observed with ROE rising to 10.16% in 2023 and further improving to 13.11% in 2024, indicating a positive trend in the company's profitability relative to its equity base.
Return on Assets (ROA)
Ford Motor Co., ROA 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) | ||||||
| Net income (loss) attributable to Ford Motor Company | 5,879) | 4,347) | (1,981) | 17,937) | (1,279) | |
| Total assets | 285,196) | 273,310) | 255,884) | 257,035) | 267,261) | |
| Profitability Ratio | ||||||
| ROA1 | 2.06% | 1.59% | -0.77% | 6.98% | -0.48% | |
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| General Motors Co. | 2.15% | 3.71% | 3.76% | 4.09% | 2.73% | |
| Tesla Inc. | 5.81% | 14.07% | 15.25% | 8.88% | 1.38% | |
| ROA, Sector | ||||||
| Automobiles & Components | 2.76% | 4.51% | 3.41% | 5.94% | 1.06% | |
| ROA, Industry | ||||||
| Consumer Discretionary | 8.18% | 7.66% | 4.94% | 8.07% | 4.42% | |
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
ROA = 100 × Net income (loss) attributable to Ford Motor Company ÷ Total assets
= 100 × 5,879 ÷ 285,196 = 2.06%
2 Click competitor name to see calculations.
- Net Income (Loss) attributable to Ford Motor Company
- The net income exhibits considerable volatility across the period. It began with a significant loss of $1,279 million in 2020, followed by a substantial turnaround to a profit of $17,937 million in 2021. However, this was not sustained, as the company experienced another loss of $1,981 million in 2022. Subsequently, profitability improved again with net income rising to $4,347 million in 2023 and further to $5,879 million in 2024. This pattern indicates fluctuations in earnings performance with recent years showing a positive recovery trend.
- Total Assets
- Total assets showed a slight decrease from $267,261 million in 2020 to $255,884 million in 2022, indicating some contraction or asset disposals during this timeframe. Thereafter, assets increased steadily to $273,310 million in 2023 and continued growing to $285,196 million in 2024, suggesting asset base expansion or acquisition activities in the later years.
- Return on Assets (ROA)
- The ROA percentage mirrors the net income trend with a negative return of -0.48% in 2020, improving sharply to 6.98% in 2021. This was followed by a decline to -0.77% in 2022, again reflecting the loss reported that year. Positive improvement resumed with ROA increasing to 1.59% in 2023 and further to 2.06% in 2024, though these levels are still modest compared to the peak performance in 2021. The data indicates fluctuating profitability relative to asset utilization, with recent years demonstrating recovery but not yet reaching prior peak efficiency.