Ford Motor Co. (NYSE:F)

Inventory turnover

Inventory turnover exhibits a cyclical pattern with fluctuations around an average range between approximately 8 and 10 times per year. Notably, there are peaks in turnover rates during the fourth quarters, such as 9.5 in December 2021 and 10.6 in December 2024, indicating more efficient inventory management during these periods.

Receivables turnover

The receivables turnover ratio shows some volatility, with high variability between quarters. It peaked at 14.36 in June 2021 and again reached 11.73 in December 2024. Overall, there is a modest downward trend from 2021 through 2025, signaling a potential elongation in receivables collection times.

Payables turnover

Payables turnover demonstrates moderate variability but generally remains within a 4.75 to 6.57 range. There is a slight upward tendency, culminating in periods such as June 2025 (6.57), suggesting a marginal acceleration in the rate at which payables are settled over the examined quarters.

Working capital turnover

Working capital turnover shows a consistent upward trajectory, increasing from 6.00 in March 2021 to a high of 14.83 in June 2025. This trend suggests increasingly efficient utilization of working capital to generate sales revenue over time, reflecting improvements in operational efficiency.

Average inventory processing period

The average inventory processing period fluctuates between approximately 34 and 47 days, with lower values typically observed during year-end quarters, aligning with inventory turnover peaks. The decreasing trend toward the later part of the period, reaching 37 days in September 2025, points to improved inventory turnover speed.

Average receivable collection period

The average receivable collection period varies notably, with an increase from 25 days in June 2021 to peaks above 40 days in several instances, including March 2024 and September 2025. This indicates a general tendency toward longer collection times in recent quarters, which may impact cash flow.

Operating cycle

The operating cycle length shows moderate fluctuations, generally ranging from around 65 to 86 days. After peaking at 86 days in March 2024, it tends to decrease slightly but remains elevated relative to the earlier years, indicating a longer time to convert inventory and receivables into cash.

Average payables payment period

The payables payment period generally ranges between 56 and 77 days, with a slight decreasing trend toward the later quarters of the data. This suggests that the company has marginally improved its payment extension to suppliers, which may benefit cash retention.

Cash conversion cycle

The cash conversion cycle displays wide variability with some missing data points but generally moves between slightly negative to low double-digit days. A trend toward longer cycles is observed, with the cycle increasing from -3 days in March 2021 to values near 20 days in early 2024, before moderating somewhat. This demonstrates a fluctuating but overall elongation in the time taken to convert investments in inventory and receivables back into cash.

The analysis of the quarterly financial data reveals notable fluctuations and trends in key operational metrics over the observed periods.

Cost of Sales

The cost of sales demonstrates a general upward trajectory throughout the periods. Starting around $29,297 million in the first quarter of 2021, it exhibits a degree of volatility but an overall increase, peaking at $44,245 million in the second quarter of 2025 before slightly declining to $43,411 million in the third quarter of 2025. This rise indicates escalating expenses related to production or procurement, potentially influenced by volume increases, inflationary pressures, or changes in input costs.

Inventories

Inventory levels fluctuate considerably during the periods observed. Initiating at $12,742 million in the first quarter of 2021, inventories generally trend upward and reach peak levels of $18,326 million by the third quarter of 2023. Thereafter, inventories show a mix of increases and reductions, ending at $16,509 million in the third quarter of 2025. This pattern suggests ongoing adjustments to inventory management strategy possibly in response to demand forecasting and supply chain dynamics.

Inventory Turnover Ratio

The inventory turnover ratio varies across quarters but remains within a moderate to high range, indicating generally efficient inventory management. Initially at 8.75 in the first quarter of 2021, the ratio dips to a low of 7.81 in the first quarter of 2022, suggesting slower sales relative to inventory at that time. Subsequently, it rises and falls but trends upward towards the end of the period, reaching a high point of 10.6 in the fourth quarter of 2024. Increased turnover at the end of the timeframe reflects improved efficiency in converting inventories into sales.

Overall, the cost of sales increases steadily, suggesting growth-related cost expansion or external inflationary effects. Inventories show adaptive fluctuations, possibly reflecting adjustments to market conditions or supply chain constraints. The inventory turnover ratio trends positively over time, indicating enhanced inventory management and faster movement of goods despite the larger inventory base. Together, these patterns highlight a dynamic operational environment focused on balancing supply with evolving demand conditions.

The analysis of the quarterly financial data reveals several noteworthy trends and patterns across key financial metrics spanning from the first quarter of 2021 through the third quarter of 2025.

Company Revenues Excluding Ford Credit

Revenues demonstrated notable fluctuations throughout the observed period. Initially, revenues declined significantly from $33,565 million in March 2021 to $24,149 million in June 2021, followed by a recovery to $35,305 million by the end of 2021. Starting in 2022, revenues showed relatively consistent growth with cyclical quarter-on-quarter variance, reaching peaks in December quarters, notably $41,745 million in December 2022 and $44,936 million in December 2024. Despite some declines in certain quarters such as March 2025 ($37,422 million), the overall trend indicates a recovery and growth in revenues toward the end of the period, culminating in $47,185 million in September 2025.

Trade and Other Receivables, Less Allowances

The balance of trade and other receivables increased steadily over the observable quarters, starting at $10,448 million in March 2021 and reaching a peak of $19,709 million in September 2025. Periodic declines, such as the drop to $14,723 million in December 2024, were followed by subsequent recoveries. This gradual rise in receivables suggests increased credit sales or extended credit terms in conjunction with overall revenue growth, potentially impacting working capital management.

Receivables Turnover Ratio

The receivables turnover ratio exhibited variability without a clear directional trend. It started at 11.31x in March 2021, then rose to a local peak of 14.36x in June 2021 before declining to lower levels around 9.2x to 9.6x during late 2021 and much of 2022. Subsequent quarters saw modest increases and decreases, with several periods below 10x, reaching a low of 8.75x in June 2025. The oscillations in turnover rate reflect changes in the efficiency of receivables collection, with lower turnover suggesting slower collection periods despite growing receivables balances and revenues.

Overall, the data indicate a growth trajectory in sales revenue, accompanied by an increase in trade receivables. However, the receivables turnover ratio points toward a potential decrease in collection efficiency over time, which may warrant closer attention to credit policies and collections management to optimize cash flow.

The analysis of the quarterly financial data reveals several noteworthy trends regarding cost of sales, payables, and payables turnover over the examined periods.

Cost of Sales

The cost of sales demonstrates a generally upward trajectory, indicating rising expenses related to producing goods or services. Starting from approximately 29,297 million USD in the first quarter of 2021, there is some fluctuation throughout 2021 with a dip in the second quarter followed by increases toward year-end. The trend intensifies in 2022 with costs ranging between roughly 29,036 million USD and 37,816 million USD, peaking in the last quarter. The upward pattern continues into 2023 and 2024, with quarterly amounts often exceeding previous peaks, reaching over 44,000 million USD by the second and third quarters of 2025. These increases may reflect inflationary pressures, increased production volume, or higher input costs.

Payables

The payables balance shows variability but also an overall increasing tendency over the period measured. Beginning near 23,492 million USD in early 2021, payables fall somewhat by mid-2021, followed by intermittent rises and declines suggestive of changes in payment cycles or vendor negotiations. Notably, peaks occur intermittently such as in the third quarter of 2022 and mid-2025, approaching levels near 27,868 million USD. These fluctuations may reflect working capital management strategies given the rising cost environment.

Payables Turnover Ratio

The payables turnover ratio, which measures how frequently payables are paid over a period, displays moderate fluctuations without a clear trend of significant improvement or deterioration. Starting at 4.75 in the first quarter of 2021, the ratio rises to over 6.2 in the second quarter of 2021 before declining and oscillating around an average of approximately 5.5 to 6.0 through the remainder of the period. Peaks above 6.5 appear sporadically toward the end of the timeframe, suggesting some periods of more rapid payment to suppliers. Stability within this range indicates steady payment practices in relation to purchases.

In summary, the data indicates that costs of sales have increased steadily over the analyzed quarters while payables have grown as well, though with more sensitivity to quarter-to-quarter changes. The payables turnover ratio remains relatively stable, implying consistent management of payables despite increasing cost pressures. Together, these patterns suggest the company is experiencing rising operating costs but maintaining a consistent approach to managing supplier payments.

The analysis of the quarterly financial data reveals several notable trends over the observed periods.

Working Capital

Working capital exhibits a fluctuating pattern throughout the quarters. Initially strong, it declined from early 2021 to mid-2022, followed by a partial recovery towards the end of 2022. Subsequently, values display volatility with another downward trend evident in the first half of 2025. This variability may suggest periodic operational changes or shifts in current assets and liabilities management.

Company Revenues Excluding Ford Credit

Revenues demonstrate a generally positive trend with some seasonal variations. After a decline in the second quarter of 2021, revenues recovered and increased steadily into 2022 and 2023, reaching peak values in several quarters. There is a consistent upward momentum into 2024, followed by some fluctuations and another rise by the third quarter of 2025. This trend indicates sustained demand or successful sales initiatives outside the Ford Credit segment.

Working Capital Turnover

Working capital turnover ratios show a marked improvement over time. Starting around 6 in early 2021, the ratio increased steadily, with occasional dips, reaching values above 10 by 2024 and even higher into 2025, peaking at nearly 15 before slightly declining. This upward trend suggests enhanced efficiency in using working capital to generate revenues, reflecting better asset utilization or inventory management.

Overall, the data reveals that while working capital fluctuates, the company has managed to improve its effectiveness in deploying working capital, as evidenced by the rising turnover ratio. Revenues show growth with periodic variability, indicating resilient sales performance in most recent periods.

The analysis of the quarterly inventory metrics reveals distinct patterns over the examined periods. The inventory turnover ratio demonstrates notable fluctuations, with values generally oscillating between approximately 7.8 and 10.6. This indicates variability in the efficiency with which inventory is sold and replenished over time.

Specifically, the turnover ratio experienced a decline in early 2022 compared to late 2021, dropping from around 9.5 to 7.81, then improving again towards the end of that year and through 2023. The ratio peaks significantly at 10.6 in the fourth quarter of 2024, suggesting a period of increased inventory efficiency. Following this peak, turnover ratios remain relatively robust, indicating sustained inventory management performance.

Corresponding to these turnover trends, the average inventory processing period, measured in days, exhibits an inverse pattern, as expected. The processing period varies mostly between 34 and 47 days. Higher turnover ratios align with shorter inventory processing periods, exemplified by the dip to 34 days in late 2024, concurrent with the highest turnover ratio. Conversely, lengthened processing periods, such as 47 days in early 2022, correspond to lower turnover ratios.

Overall, the data suggests cycles of inventory management adjustments with periods of increased efficiency interspersed with slower inventory processing intervals. The recent trends towards higher turnover ratios and reduced processing days imply ongoing improvements in inventory handling effectiveness.

Receivables Turnover

The receivables turnover ratio exhibits notable fluctuations over the periods analyzed. Initially, there is an upward trend reaching a peak in mid-2021, followed by a decline through the end of 2021 and into 2022. The ratio stabilizes somewhat during 2022 and early 2023, with moderate increases appearing sporadically. Toward 2024 and 2025, the ratio demonstrates increased volatility, with values alternating between higher and lower points, but generally settling around a level somewhat lower than the early peak.

Average Receivable Collection Period

The average receivable collection period shows an inverse movement relative to the receivables turnover ratio. The number of days to collect receivables decreases early on, indicating improved cash collection efficiency up to mid-2021. However, starting from late 2021 and advancing through 2022, the collection period grows longer, peaking in some quarters with values indicating slower collections. The trend continues with some variability into 2023 and beyond, occasionally shortening but generally trending to collection periods longer than those seen in early 2021. The extended collection duration during later periods suggests increasing challenges in the prompt collection of receivables.

Overall Analysis

The inverse relationship between the receivables turnover and the average collection period is consistent with typical financial dynamics. Periods of lower turnover correspond with lengthening collection days, and vice versa. The observed data suggest an initial phase of improved receivables management in early 2021, followed by a period of relative decline and inconsistency extending through 2025. This pattern could point to changing credit policies, customer payment behavior, or market conditions affecting receivables collection efficiency. Attention to these trends is essential, as prolonged collection periods may impact cash flow and working capital management.

The analysis of the key operational efficiency metrics over the reported periods reveals notable fluctuations and trends in inventory management, receivables collection, and the overall operating cycle.

Average Inventory Processing Period

The average inventory processing period demonstrates some variability around a range of approximately 34 to 47 days. Initially, it was relatively stable, fluctuating between 38 and 43 days through 2021. In early 2022, there is a noticeable spike reaching 47 days in the first quarter, followed by a decline back to the upper 30s by the end of that year. In the subsequent years, this period oscillates but exhibits a gradual shortening, reaching as low as 34 days in the fourth quarter of 2024 and maintaining low 30s through 2025. This suggests improvements in inventory turnover efficiency over time, particularly notable in the latter reported years.

Average Receivable Collection Period

The receivable collection period fluctuates within a range of approximately 25 to 42 days. Early data shows collection periods between 25 and 38 days, with occasional rises reaching near 40 days by mid-2022. Throughout 2023 and into early 2024, this period generally remains in the low to mid-30 day range, before increasing again to the high 30s and low 40s during the last recorded periods. These variations indicate less consistent collections, with some periods reflecting slower receivables turnover which could impact cash flow.

Operating Cycle

The operating cycle, combining inventory and receivables periods, ranges from 65 to 86 days. The cycle exhibits an increasing trend from 2021 into early 2022, peaking at 86 days in the first quarter of 2024. Following this peak, there is a marked reduction to 65 days by the fourth quarter of 2024, indicating a more efficient operating cycle. However, the cycle extends again into the upper 70s and low 80s in 2025. The trends reflect phases of lengthening and shortening operating cycles, likely influenced by the movements in inventory and receivable periods.

Overall, the data suggest ongoing efforts and partial success in optimizing inventory turnover and operating cycle lengths, with more mixed performance in receivables collection. The improvements in the inventory processing period contribute significantly to periods of shortened operating cycles. However, the variability in receivables collection periods points to potential challenges in cash flow management that warrant attention to maintain consistent operational efficiency.

Payables Turnover Ratio

The payables turnover ratio exhibits moderate variability over the examined quarters, oscillating generally between 4.75 and 6.57. Notably, the ratio increased from 4.75 in the first quarter of 2021 to a peak of 6.27 in the second quarter of 2021, indicating an improvement in the frequency with which payables are settled within that period. Subsequently, the ratio fluctuates but maintains a general upward trend, reaching another peak at 6.57 in the fourth quarter of 2024. This trend suggests an overall improvement in the company's efficiency in managing its accounts payable over time, with minor interim decreases reflecting periodic adjustments or operational changes.

Average Payables Payment Period (Number of Days)

The average payables payment period demonstrates a tendency to fluctuate inversely relative to the payables turnover ratio, as expected. Initially, the payment period decreased from 77 days in the first quarter of 2021 to a low of 58 days in the second quarter of 2021. After this point, it exhibits cyclical increases and decreases, with values generally reverting to the range of approximately 60 to 77 days. The most recent data toward 2025 indicates a stabilization around the low 60-day mark, with minor variations between 56 and 63 days in the last observed periods. This reduction and stabilization imply a more consistent and potentially improved payment discipline over time.

Overall Insights

The interplay between the two metrics suggests a trend of enhanced accounts payable management, with the company increasingly able to turn over its payables more frequently while concurrently reducing the average duration for settlement. The improvements seen through 2024 imply a shift towards stronger liquidity management or renegotiated payment terms with suppliers. Fluctuations in the intermediary periods may reflect operational adjustments or external factors affecting payables processing. The stabilization and modest improvements toward the end of the timeline point to a more predictable and efficient working capital cycle related to payables.

The analysis of the quarterly financial data reveals several noteworthy trends in the operational efficiency and cash management over the examined periods.

Average Inventory Processing Period

The inventory processing period fluctuates moderately, generally ranging between 34 and 47 days. It reaches peaks around March 2022 and June 2024 with 47 and 45 days respectively, indicating slower inventory turnover during those quarters. Conversely, the period shortens notably to 34 days in December 2024, suggesting an improvement in inventory management and faster processing at that time.

Average Receivable Collection Period

The receivable collection period demonstrates variability across quarters, moving mostly between 25 and 42 days. It shows a trend of sporadic increases, with peaks at 42 days in September 2025 and similarly high values earlier in March 2024, reflecting lengthier times to collect receivables in these periods. Lower values, such as 25 days in June 2021, signify more efficient receivables management in earlier quarters.

Average Payables Payment Period

The average period for payables payment evidences a general downward trend from an initial high of 77 days in March 2021 to around 56-63 days in more recent quarters. This shortening of the payable period may imply a strategy of faster payment to suppliers or reduced credit terms, impacting cash outflows and supplier relationships.

Cash Conversion Cycle

The cash conversion cycle exhibits considerable variation, spanning from negative values to over 20 days. Notably, earlier quarters such as March 2021 display a negative cycle (-3 days), suggesting that payables payments may be occurring after cash is collected from customers, enhancing liquidity. Later periods, particularly around March 2024 and June 2025, show elevated cycles up to 20 and 18 days respectively, indicating a longer duration to convert investments in inventory and receivables into cash. This trend could signal increasing working capital requirements or efficiency challenges in cash flow management.

Overall, while there are fluctuations in all metrics, the company’s payables payment period shows a clear tendency toward faster payments, which could strain liquidity if not balanced carefully. Receivable collection periods and inventory processing times show variable patterns without a consistent improvement or deterioration trend, thus warranting closer monitoring. The cash conversion cycle values, oscillating substantially and including both negative and positive outcomes, reflect variability in the cash flow timing that could affect operational flexibility and funding needs.