Ford Motor Co. (NYSE:F)

The analyzed financial ratios and periods demonstrate varied trends with notable fluctuations in company operational efficiency and liquidity management over the time span.

Inventory Turnover

This ratio shows a general variation between approximately 7.8 and 10.6, indicating fluctuating efficiency in inventory management. Peaks occur around March 2025 (10.6) and March 2021 (9.5), while the lower values mostly cluster in mid-2022 and 2023 periods, reflecting some inconsistency in inventory utilization over the quarters.

Receivables Turnover

The receivables turnover ratio oscillates between roughly 8.75 and 14.36, peaking notably in September 2020. Following this peak, there is a downward drift with some recovery in late 2023 and early 2024, but generally the trend suggests more extended collection periods, potentially indicating challenges in collection efficiency or changes in credit policy.

Payables Turnover

This ratio ranges from about 4.75 to 6.57, with generally stable fluctuations. There is no clear upward or downward long-term trend, although occasional increases (such as in September 2024) suggest varying payment practices. The variability indicates some flexibility or adjustments in managing payables over time.

Working Capital Turnover

A consistent upward trend is visible in working capital turnover, increasing from about 5.9 to a high near 14.83 by mid-2025. This signals improving efficiency in utilizing working capital to support sales, implying stronger asset management and perhaps better operational leverage as time progresses.

Average Inventory Processing Period

The inventory days range mostly between 34 and 47 days, with some cyclical fluctuation. Lower values around 34-38 days contrast with higher values approaching 45-47 days, indicating periods of faster and slower inventory movement, which corresponds inversely with inventory turnover ratio trends.

Average Receivable Collection Period

This period varies from approximately 25 to 42 days, with a peak at 42 days near September 2024. The data shows moderate oscillations, reflecting changes in how quickly the company is able to collect payments from customers. The lengthening periods in later dates suggest challenges or strategic changes in credit extension.

Operating Cycle

Operating cycle values fluctuate between 65 and 86 days, with no consistent direction but periods of both elongation and contraction. This reflects the combined impact of inventory turnover and receivable collections, indicating operational timing varies over quarters without stable improvement or deterioration.

Average Payables Payment Period

The payables payment period ranges primarily from 56 to 77 days, showing relatively wide variation. Peaks and troughs demonstrate changing dynamics in payment terms or cash management strategies, where the firm sometimes takes longer to pay suppliers and at other times shortens the payment period.

Cash Conversion Cycle

The cash conversion cycle fluctuates extensively, spanning from negative values (as low as -6 days) to positive highs around 20 days. This shows intermittent efficiency in cash flow management, with some quarters indicating a quick recovery of cash invested in operations (negative values) while others reflect delayed cash recovery, affecting liquidity.

Cost of Sales

The cost of sales demonstrates significant fluctuations over the periods analyzed. Initially, during 2020, there was a notable decrease from $30,522 million in March to $17,932 million in June, followed by a recovery to $33,075 million by December 2020. In 2021, the cost of sales remained volatile with values generally ranging between approximately $22,904 million to $32,393 million. A sharp increase is visible towards the end of 2022, peaking at $37,816 million in December, and this upward trend largely continued into 2023 and 2024. For instance, costs rose to $40,862 million by December 2023 and exceeded $44,000 million in mid-2025. Overall, the cost of sales trend indicates increasing production or procurement expenses after initial instability in 2020.

Inventories

Inventory levels show an overall upward trend from early 2020 through mid-2023, rising from $11,312 million in March 2020 to a peak of $18,326 million in September 2023. After this peak, inventory values fluctuate moderately but remain elevated relative to 2020 levels, with values such as $17,270 million in June 2025. The pattern suggests increased stock holdings possibly reflecting strategic inventory build-up or slower inventory turnover during certain periods.

Inventory Turnover Ratio

The inventory turnover ratio, available from late 2020 onward, ranges approximately between 7.81 and 10.6 times per year. It was highest at 10.6 in March 2025, indicating more efficient inventory management or faster movement of stock at that time. Periodic declines are observed—for example, a notable dip to 7.81 in June 2022—implying occasional slower inventory turnover which could be due to supply chain factors or demand variations. The ratio fluctuates but generally stays within a relatively stable band, suggesting consistent operational performance in inventory management over the analyzed years.

Summary of Insights

The data reflects that the company experienced significant variability in cost of sales, especially marked by a strong increase after 2021, likely due to rising input costs or expanded production activity. Inventory levels have generally increased over time, which might indicate strategic stock accumulation or market conditions affecting sales velocity. Despite fluctuations, the inventory turnover ratio has remained within a moderate range, balancing between efficient stock management and periods of slower inventory liquidation. The overall picture suggests growing operational scale accompanied by challenges in supply chain and inventory control dynamics across these years.

Revenue Trends

Revenues excluding Ford Credit demonstrate notable volatility over the periods analyzed. An initial sharp decline is observed between March 31, 2020 (US$31,353 million) and June 30, 2020 (US$16,632 million), likely reflecting external disruptive factors. Subsequently, revenues recover significantly by September 30, 2020 (US$34,727 million) and fluctuate moderately through 2021, peaking at US$35,305 million by December 31, 2021. The trend continues predominantly upwards throughout 2022 and into 2023, reaching a high of US$43,213 million by December 31, 2023. However, towards the end of the data series, a slight decrease occurs, with revenues falling to US$37,422 million by March 31, 2025 before rising again to US$46,943 million by June 30, 2025.

Trade and Other Receivables, Less Allowances

The trade and other receivables, net of allowances, exhibit a general upward trajectory from March 31, 2020 (US$6,625 million) to a peak on June 30, 2024 (US$18,698 million). This upward trend suggests an increasing volume of credit sales or extended payment terms. Some fluctuations occur within this long-term rise, notably a dip around June 30, 2021 (US$8,750 million) followed by a second increase towards year-end 2021 and continuing thereafter. A slight decline appears around March to June 2025, but overall, receivables have nearly tripled since the initial period.

Receivables Turnover Ratio

The receivables turnover ratio shows fluctuations without a clear linear trend but remains generally between approximately 9 and 12 times per year. Starting from a level around 11.6 in the last quarter of 2020, it dips to below 9 at some points, such as December 31, 2023 (8.92), indicating slower collection periods during these times. Peaks around 11.7 on March 31, 2025 signal relatively faster receivables collection. The variability in the ratio may correspond to the changes in receivables and revenues, reflecting adjustments in credit policies or customer payment behaviors.

Overall Financial Insights

The data reveals a company experiencing considerable revenue swings initially, followed by a mostly recovery-driven and growth-oriented path thereafter. The steady rise in receivables juxtaposed with a generally stable receivables turnover ratio suggests increasing credit sales managed with reasonable collection efficiency, albeit with intermittent slowdowns. The alignment of peaks and troughs between revenues and receivables highlights the interplay between sales volume and credit management. The mixed movements in turnovers point to a potential area for monitoring cash flow and credit risk in future periods.

Cost of Sales

The cost of sales demonstrates notable volatility throughout the observed periods. Starting at 30,522 million USD in March 2020, the figure declined sharply to 17,932 million USD in June 2020, likely reflecting disruptions during that period. Subsequently, the cost progressively increased with fluctuations, reaching a peak of 44,245 million USD by June 2025. This general uptrend indicates rising production or procurement costs over time, with intermittent quarter-to-quarter variations that may correspond to seasonal or operational factors.

Payables

Payables exhibit a moderate upward trend overall. Beginning at 18,439 million USD in March 2020, the amount shows periodic increases and some retrenchments over the quarters. Notable peaks appear in September 2022 and December 2024, at 27,051 million USD and 27,424 million USD respectively. Despite short-term fluctuations, payables tend to remain within a band roughly between 16,360 million USD and 27,756 million USD, suggesting relative stability in outstanding obligations to suppliers with a gradual increase over the long term.

Payables Turnover Ratio

The payables turnover ratio data is available from September 2020 onward and fluctuates between approximately 4.75 and 6.57 over the observed quarters. The ratio peaked at 6.57 in March 2025, suggesting a relatively faster payment cycle during that period. The lowest values, around 4.75 to 5.08 in late 2020 and early 2021, imply a slower turnover of payables. Generally, the ratio shows cyclical variation but with a mild upward tendency, indicating an improvement or acceleration in the rate at which payables are settled over time.

Summary of Trends

Overall, the cost of sales has increased substantially over the five-year period, reflecting either increased volumes, cost inflation, or changes in product mix. Payables have also increased, but less sharply, maintaining a somewhat stable range with occasional spikes. The payables turnover ratio suggests that the company has been managing its payables with some improvements in efficiency, as indicated by the slight upward trend in turnover. This pattern may reflect strategic supplier payment practices or changes in credit terms.

Working Capital

The working capital demonstrated a fluctuating downward trend over the analyzed periods. It peaked early in the timeline, reaching figures above 31 billion US dollars in mid-2020, before decreasing to values near 11.6 billion US dollars by mid-2025. Notable declines are visible in the later years, suggesting a reduction in short-term liquidity or a change in operational asset management.

Company Revenues Excluding Ford Credit

Revenues exhibited significant volatility but tended to increase over the period. Starting at approximately 31.4 billion US dollars in early 2020, revenues fell sharply in the second quarter of 2020 to about 16.6 billion US dollars, likely due to external disruptions. Following this decline, the revenues generally recovered and grew, reaching around 46.9 billion US dollars by mid-2025. This represents a strong rebound and growth trajectory reflecting improved sales or market conditions over time.

Working Capital Turnover

The working capital turnover ratio, available from late 2020 onward, displayed a consistent rising trend. Beginning at about 5.93, the ratio advanced steadily, more than doubling to nearly 14.83 by mid-2025. This suggests that the company increasingly utilized its working capital more efficiently to generate revenues, implying enhanced operational productivity despite the declining absolute working capital.

Overall Insights

In summary, the company faced a notable initial contraction in working capital and revenues during early phases, likely influenced by external market conditions. However, revenues have shown robust growth in the later years, accompanied by a substantial improvement in working capital turnover, indicating more effective use of current assets to drive sales. The contrasting trends between declining working capital and growing revenues and turnover imply strategic optimization of asset management and operational processes.

Inventory Turnover

The inventory turnover ratio exhibits noticeable fluctuations across the periods analyzed, beginning at 10.43 in the first reported quarter of 2020 and declining to 8.75 and 8.57 in the subsequent quarters within the same year. The ratio stabilizes near the mid-to-high single digits throughout the following quarters, with occasional increases, such as reaching 9.62 in the first quarter of 2024 and 10.6 in the third quarter of 2024. Toward the latest periods reported, the ratio hovers around the high eights to low nines, indicating periodic but moderate changes in the efficiency with which inventory is converted into sales over time.

Average Inventory Processing Period

The average inventory processing period demonstrates an inverse movement relative to the inventory turnover ratio, ranging roughly from 34 to 47 days. Initial values in early 2020 are at 35 days, increasing significantly to 42-45 days in many of the subsequent quarters, peaking at 47 days in one quarter. Intermittent decreases to around 38 days occur throughout the timeline, showing efforts to reduce inventory holding periods. The earliest periods show a shorter duration, whereas some later quarters see expansions in processing periods, reflecting varied inventory management effectiveness or possible supply chain and sales cycle impacts over the time span.

Overall Trends and Insights

The inverse relationship observed between inventory turnover and the average inventory processing period is consistent, as expected from operational metrics. While the turnover ratio generally remains within a moderate range, the fluctuations suggest periods of both improved and reduced inventory management efficiency. The variation in processing days reinforces this observation, indicating changes in supply chain and sales dynamics over time. There is no persistent trend toward continuous improvement or deterioration, but instead a pattern of oscillation that may reflect adjustments in inventory policies, market demands, or production cycles.

Receivables Turnover Ratio

The receivables turnover ratio displays considerable fluctuation over the periods analyzed, beginning at 11.6 in March 2020, followed by a modest decline in the subsequent quarter to 11.31. It then peaks at 14.36 in September 2020 before dropping again to 11.45 in December 2020. Throughout 2021 and 2022, the ratio generally decreases, reaching a low around 9.22 in September 2022. From late 2022 through mid-2023, the ratio trends upward, peaking at 11.08 in June 2023 and remaining relatively stable around 10.6 to 11.7 afterward. However, the latter quarters exhibit some volatility with a downward trend through the final period, indicating possible challenges in efficiently collecting receivables.

Average Receivable Collection Period

The average collection period inversely mirrors the receivables turnover trend, starting at 31 days in March 2020 and slightly increasing to 32 days by June 2020. It improves significantly to 25 days in September 2020, but then extends back to 32 days by the end of the same year. During 2021 and into 2022, the collection period lengthens progressively, hitting a peak of 40 days in September 2022, suggesting slower collection of outstanding receivables. Following this peak, there is an improvement with a reduction to approximately 33-35 days through mid-2023. However, the last periods show an increase again, reaching up to 42 days in the most recent quarter, signifying a deterioration in collection efficiency towards the end of the timeline.

Overall Analysis

The data indicates cyclical fluctuations in receivables management efficiency over the observed quarters. The initial improvement in turnover and corresponding reduction in collection days is not sustained, followed by a period of declining turnover and lengthening collection periods, suggesting possible operational or market challenges affecting receivables. The mid-period recovery points to some corrective measures or improved conditions, yet the late-stage data implies renewed difficulties in maintaining optimal receivables turnover and collection timelines. This pattern points to the need for continued focus on credit and collection policies to stabilize and enhance cash flow management.

Average Inventory Processing Period

The average inventory processing period generally fluctuates between 34 and 47 days. Beginning from a low of 35 days in March 2021, it increased to a peak of 47 days by June 2022. Subsequently, it moved between 38 and 45 days without a clear upward or downward trend, ending at 39 days in June 2025. This pattern suggests variability in inventory turnover, with occasional slower inventory processing, particularly around mid-2022.

Average Receivable Collection Period

The receivable collection period shows moderate volatility over the periods. Starting around 31-33 days in early 2021, it briefly declined to 25 days in September 2021 but then increased steadily to a high of 42 days by June 2025. This indicates some lengthening in the time customers take to pay, which may impact cash flow management. Despite this, occasional reductions suggest efforts to improve collections in certain quarters.

Operating Cycle

The operating cycle, representing the total time to turn inventory and receivables into cash, aligns closely with the trends in inventory and receivable periods. It fluctuates from a low of 65 days in March 2025 to peaks around 85-86 days in June 2022 and June 2024. This volatility reflects combined variations in both inventory turnover and receivable management, highlighting periods of slower overall operational efficiency followed by some improvement towards early 2025.

Payables Turnover Ratio

The payables turnover ratio, beginning from March 31, 2020, shows values starting at 5.08 and demonstrates fluctuations over the analyzed quarters. It declined to 4.75 by June 30, 2020, indicating slower payment to suppliers. A peak was observed in September 2021 at 6.27, suggesting a faster payment cycle during that period. Subsequently, the ratio showed moderate variability but generally maintained values between approximately 4.77 and 6.57. The highest turnover ratio was recorded at 6.57 on March 31, 2025, representing the quickest payables processing rate within the data set. This oscillating but generally upward trend implies an improving efficiency in managing payables toward the later periods.

Average Payables Payment Period (days)

The average payables payment period has varied in a manner inverse to the payables turnover ratio, consistent with their theoretical relationship. Starting from 72 days as of March 31, 2020, the period extended to 77 days by June 30, 2020, indicating slower payments made to suppliers. A notable reduction to 58 days occurred in September 2020, aligning with the earlier observed improvement in turnover ratio. Over the following quarters, this period fluctuated between approximately 56 and 77 days. The shortest payment period of 56 days was recorded on March 31, 2025, coinciding with one of the highest turnover ratios, reinforcing the notion of accelerated payables settlements in recent quarters. Overall, the trend suggests a move toward quicker payment terms, reflecting enhanced liquidity management or supplier relationship optimization.

Overall Insights

The all-around movement in payables turnover and the corresponding payment period indicate shifts in the company's working capital management efficiency over the observed timeframe. Periods of slower payables turnover correspond with longer payment durations, whereas improvements in turnover ratios align with shortened payment periods. This pattern demonstrates active adjustments in payment strategies likely aimed at balancing cash flow with supplier relations. The data signals a trend toward quicker payment cycles in recent years, potentially reflecting an emphasis on maintaining supplier goodwill or capitalizing on operational efficiencies.

Average Inventory Processing Period

The average inventory processing period shows moderate fluctuations over the analyzed quarters. Starting at 35 days in March 2021, it experienced a general upward trend, reaching peaks of 47 days in June 2022 and 45 days in September and December 2023. Towards the most recent quarters, the period tends to decrease slightly, finishing at 39 days in June 2025. This suggests some variability in inventory management efficiency, with occasional longer holding times but no consistent trend towards either elongation or reduction.

Average Receivable Collection Period

This period exhibits variability with intermittent increases and decreases. It was around 31-32 days in early 2021, rose to 40 days by September 2022, then generally decreased to around the mid-30s in 2023. In 2024 and 2025, the figure fluctuated between 31 and 42 days, with a peak of 42 days in June 2025. The wide range observed could indicate variable customer payment behavior or changing credit policies, impacting cash inflows unpredictably.

Average Payables Payment Period

The average payables payment period also fluctuated without a clear directional trend. It started around 72-77 days in early 2021, then decreased to a low of 56 days in September 2024 before increasing again to 63 days in June 2025. This pattern may reflect changes in supplier payment strategies or negotiations, alternating between quicker and delayed payments over the quarters.

Cash Conversion Cycle

The cash conversion cycle values reveal volatility and an overall slight upward tendency in the later periods. Negative or low positive values at the beginning of the timeline (-6 to 2 days) imply an efficient cycle early on, but subsequent quarters show an increasing range, reaching as high as 20 days in March 2024 and remaining in the upper teens into mid-2025. This increasing cash conversion cycle indicates a longer period between cash outflows and inflows, potentially signifying tighter working capital management challenges or shifts in operational efficiency.