Analysis of Short-term (Operating) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
Ford Motor Co., short-term (operating) activity 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).
| 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
| 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
| 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
| 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
| 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
| 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
| 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
| 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
| 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
| 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 + 39 – 70 = 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. |