Stock Analysis on Net

Ford Motor Co. (NYSE:F)

Analysis of Short-term (Operating) Activity Ratios 

Microsoft Excel

Short-term Activity Ratios (Summary)

Ford Motor Co., short-term (operating) activity ratios

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Turnover Ratios
Inventory turnover 9.55 9.50 10.43 12.49 12.15
Receivables turnover 9.47 11.09 11.60 15.55 13.25
Payables turnover 5.25 5.13 5.08 6.52 6.33
Working capital turnover 7.60 6.91 5.93 9.02 7.77
Average No. Days
Average inventory processing period 38 38 35 29 30
Add: Average receivable collection period 39 33 31 23 28
Operating cycle 77 71 66 52 58
Less: Average payables payment period 70 71 72 56 58
Cash conversion cycle 7 0 -6 -4 0

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).

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Ford Motor Co. inventory turnover ratio deteriorated from 2020 to 2021 but then slightly improved from 2021 to 2022.
Receivables turnover An activity ratio equal to revenue divided by receivables. Ford Motor Co. receivables turnover ratio deteriorated from 2020 to 2021 and from 2021 to 2022.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Ford Motor Co. payables turnover ratio increased from 2020 to 2021 and from 2021 to 2022.
Working capital turnover An activity ratio calculated as revenue divided by working capital. Ford Motor Co. working capital turnover ratio improved from 2020 to 2021 and from 2021 to 2022.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period.
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. Ford Motor Co. number of days of receivables outstanding deteriorated from 2020 to 2021 and from 2021 to 2022.
Operating cycle Equal to average inventory processing period plus average receivables collection period. Ford Motor Co. operating cycle deteriorated from 2020 to 2021 and from 2021 to 2022.
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. Ford Motor Co. number of days of payables outstanding decreased from 2020 to 2021 and from 2021 to 2022.
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. Ford Motor Co. cash conversion cycle deteriorated from 2020 to 2021 and from 2021 to 2022.

Inventory Turnover

Ford Motor Co., inventory turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Selected Financial Data (US$ in millions)
Cost of sales 134,397 114,651 112,752 134,693 136,269
Inventories 14,080 12,065 10,808 10,786 11,220
Short-term Activity Ratio
Inventory turnover1 9.55 9.50 10.43 12.49 12.15
Benchmarks
Inventory Turnover, Competitors2
General Motors Co. 8.26 7.74 9.53 10.64 12.29
Tesla Inc. 4.72 6.99 6.07 5.77 5.59
Inventory Turnover, Sector
Automobiles & Components 7.61 8.29 9.35 10.75 11.36
Inventory Turnover, Industry
Consumer Discretionary 6.47 6.84 7.21 7.44 7.75

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
Inventory turnover = Cost of sales ÷ Inventories
= 134,397 ÷ 14,080 = 9.55

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Ford Motor Co. inventory turnover ratio deteriorated from 2020 to 2021 but then slightly improved from 2021 to 2022.

Receivables Turnover

Ford Motor Co., receivables turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Selected Financial Data (US$ in millions)
Automotive revenues 148,980 126,150 115,885 143,599 148,294
Trade and other receivables, less allowances 15,729 11,370 9,993 9,237 11,195
Short-term Activity Ratio
Receivables turnover1 9.47 11.09 11.60 15.55 13.25
Benchmarks
Receivables Turnover, Competitors2
General Motors Co. 10.80 15.36 13.52 18.05 20.32
Tesla Inc. 27.60 28.14 16.72 18.56 22.61
Receivables Turnover, Sector
Automobiles & Components 11.70 14.20 12.86 16.76 16.20
Receivables Turnover, Industry
Consumer Discretionary 17.44 20.83 21.20 20.86 21.05

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
Receivables turnover = Automotive revenues ÷ Trade and other receivables, less allowances
= 148,980 ÷ 15,729 = 9.47

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Receivables turnover An activity ratio equal to revenue divided by receivables. Ford Motor Co. receivables turnover ratio deteriorated from 2020 to 2021 and from 2021 to 2022.

Payables Turnover

Ford Motor Co., payables turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Selected Financial Data (US$ in millions)
Cost of sales 134,397 114,651 112,752 134,693 136,269
Payables 25,605 22,349 22,204 20,673 21,520
Short-term Activity Ratio
Payables turnover1 5.25 5.13 5.08 6.52 6.33
Benchmarks
Payables Turnover, Competitors2
General Motors Co. 4.62 4.93 4.89 5.26 5.41
Tesla Inc. 3.97 4.01 4.12 5.44 5.12
Payables Turnover, Sector
Automobiles & Components 4.71 4.84 4.88 5.85 5.81
Payables Turnover, Industry
Consumer Discretionary 4.59 4.52 4.50 5.23 5.45

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
Payables turnover = Cost of sales ÷ Payables
= 134,397 ÷ 25,605 = 5.25

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Ford Motor Co. payables turnover ratio increased from 2020 to 2021 and from 2021 to 2022.

Working Capital Turnover

Ford Motor Co., working capital turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Selected Financial Data (US$ in millions)
Current assets 116,476 108,996 116,744 114,047 114,649
Less: Current liabilities 96,866 90,727 97,192 98,132 95,569
Working capital 19,610 18,269 19,552 15,915 19,080
 
Automotive revenues 148,980 126,150 115,885 143,599 148,294
Short-term Activity Ratio
Working capital turnover1 7.60 6.91 5.93 9.02 7.77
Benchmarks
Working Capital Turnover, Competitors2
General Motors Co. 15.52 14.76 107.17
Tesla Inc. 5.73 7.28 2.53 17.12
Working Capital Turnover, Sector
Automobiles & Components 8.69 8.80 7.75 39.11 28.98
Working Capital Turnover, Industry
Consumer Discretionary 21.76 12.23 14.35 27.85 18.71

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
Working capital turnover = Automotive revenues ÷ Working capital
= 148,980 ÷ 19,610 = 7.60

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Working capital turnover An activity ratio calculated as revenue divided by working capital. Ford Motor Co. working capital turnover ratio improved from 2020 to 2021 and from 2021 to 2022.

Average Inventory Processing Period

Ford Motor Co., average inventory processing period calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Selected Financial Data
Inventory turnover 9.55 9.50 10.43 12.49 12.15
Short-term Activity Ratio (no. days)
Average inventory processing period1 38 38 35 29 30
Benchmarks (no. days)
Average Inventory Processing Period, Competitors2
General Motors Co. 44 47 38 34 30
Tesla Inc. 77 52 60 63 65
Average Inventory Processing Period, Sector
Automobiles & Components 48 44 39 34 32
Average Inventory Processing Period, Industry
Consumer Discretionary 56 53 51 49 47

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
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 9.55 = 38

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period.

Average Receivable Collection Period

Ford Motor Co., average receivable collection period calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Selected Financial Data
Receivables turnover 9.47 11.09 11.60 15.55 13.25
Short-term Activity Ratio (no. days)
Average receivable collection period1 39 33 31 23 28
Benchmarks (no. days)
Average Receivable Collection Period, Competitors2
General Motors Co. 34 24 27 20 18
Tesla Inc. 13 13 22 20 16
Average Receivable Collection Period, Sector
Automobiles & Components 31 26 28 22 23
Average Receivable Collection Period, Industry
Consumer Discretionary 21 18 17 17 17

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
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 9.47 = 39

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. Ford Motor Co. number of days of receivables outstanding deteriorated from 2020 to 2021 and from 2021 to 2022.

Operating Cycle

Ford Motor Co., operating cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Selected Financial Data
Average inventory processing period 38 38 35 29 30
Average receivable collection period 39 33 31 23 28
Short-term Activity Ratio
Operating cycle1 77 71 66 52 58
Benchmarks
Operating Cycle, Competitors2
General Motors Co. 78 71 65 54 48
Tesla Inc. 90 65 82 83 81
Operating Cycle, Sector
Automobiles & Components 79 70 67 56 55
Operating Cycle, Industry
Consumer Discretionary 77 71 68 66 64

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 cycle = Average inventory processing period + Average receivable collection period
= 38 + 39 = 77

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Operating cycle Equal to average inventory processing period plus average receivables collection period. Ford Motor Co. operating cycle deteriorated from 2020 to 2021 and from 2021 to 2022.

Average Payables Payment Period

Ford Motor Co., average payables payment period calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Selected Financial Data
Payables turnover 5.25 5.13 5.08 6.52 6.33
Short-term Activity Ratio (no. days)
Average payables payment period1 70 71 72 56 58
Benchmarks (no. days)
Average Payables Payment Period, Competitors2
General Motors Co. 79 74 75 69 67
Tesla Inc. 92 91 89 67 71
Average Payables Payment Period, Sector
Automobiles & Components 77 75 75 62 63
Average Payables Payment Period, Industry
Consumer Discretionary 79 81 81 70 67

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
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 5.25 = 70

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. Ford Motor Co. number of days of payables outstanding decreased from 2020 to 2021 and from 2021 to 2022.

Cash Conversion Cycle

Ford Motor Co., cash conversion cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Selected Financial Data
Average inventory processing period 38 38 35 29 30
Average receivable collection period 39 33 31 23 28
Average payables payment period 70 71 72 56 58
Short-term Activity Ratio
Cash conversion cycle1 7 0 -6 -4 0
Benchmarks
Cash Conversion Cycle, Competitors2
General Motors Co. -1 -3 -10 -15 -19
Tesla Inc. -2 -26 -7 16 10
Cash Conversion Cycle, Sector
Automobiles & Components 2 -5 -8 -6 -8
Cash Conversion Cycle, Industry
Consumer Discretionary -2 -10 -13 -4 -3

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
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 38 + 3970 = 7

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. Ford Motor Co. cash conversion cycle deteriorated from 2020 to 2021 and from 2021 to 2022.