Analysis of Short-term (Operating) Activity Ratios
Quarterly Data
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 (quarterly data)
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
The short-term operating activity ratios demonstrate fluctuating performance over the observed period. Generally, efficiency metrics show improvement in recent quarters, particularly towards the end of the period, though some ratios exhibit volatility. Inventory management, accounts receivable handling, accounts payable management, and overall working capital utilization all present distinct trends worthy of note.
- Inventory Turnover
- Inventory turnover generally remained between 7.81 and 9.62 from March 2022 through December 2023. A noticeable increase occurred in December 2023 (9.62), continuing into a higher range of 8.77 to 11.41 from March 2024 through December 2025. This suggests increasing efficiency in inventory management and sales in the latter part of the period.
- Receivables Turnover
- Receivables turnover exhibited a slight upward trend from 9.58 in March 2022 to a peak of 11.73 in December 2023, before declining to a low of 8.92 in March 2024. It then recovered, reaching 11.30 in December 2025. This indicates fluctuations in the speed of collecting receivables, with a generally positive trend overall, but with a significant dip in the first quarter of 2024.
- Payables Turnover
- Payables turnover showed a relatively stable pattern, fluctuating between 4.77 and 5.79 for most of the period. An increase to 6.76 in December 2025 suggests improved efficiency in managing payments to suppliers. The overall trend is modestly positive.
- Working Capital Turnover
- Working capital turnover demonstrated a significant upward trend, particularly from March 2024 onwards. Starting at 9.59 in March 2024, it rose dramatically to 20.24 by December 2025. This indicates a substantial improvement in the efficiency of utilizing working capital to generate sales. The earlier period showed more moderate fluctuations.
- Average Inventory Processing Period
- The average inventory processing period generally decreased from 47 days in March 2022 to 32 days in December 2025, with some quarterly variations. This decline aligns with the increasing inventory turnover and suggests a faster movement of inventory through the production and sales process.
- Average Receivable Collection Period
- The average receivable collection period fluctuated, ranging from 33 to 42 days. A decrease to 32 days in December 2025 suggests improved efficiency in collecting payments from customers, though there were periods of slower collection, notably in the first half of 2025.
- Operating Cycle & Cash Conversion Cycle
- The operating cycle generally decreased from 85 days in March 2022 to 64 days in December 2025, indicating a shorter time to convert raw materials into cash. The cash conversion cycle exhibited more volatility, ranging from 4 to 20 days. The decrease in both cycles towards the end of the period suggests improved overall operational efficiency. The cash conversion cycle’s increase in early 2025 warrants further investigation.
- Average Payables Payment Period
- The average payables payment period showed a slight decreasing trend, from 74 days in March 2022 to 54 days in December 2025. This suggests a shortening of the time taken to pay suppliers, potentially indicating improved cash management or negotiated payment terms.
In summary, the observed trends suggest improving operational efficiency, particularly in the latter half of the period. The increases in inventory and working capital turnover, coupled with decreases in processing and collection periods, indicate a more streamlined and effective use of resources. However, fluctuations in receivables turnover and the cash conversion cycle suggest areas where continued monitoring and potential improvement efforts may be beneficial.
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Turnover Ratios
Average No. Days
Inventory Turnover
Ford Motor Co., inventory turnover calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Cost of sales | 51,622) | 43,411) | 44,245) | 35,188) | 41,301) | 40,168) | 40,489) | 36,476) | 40,862) | 37,548) | 37,471) | 34,669) | 37,816) | 34,354) | 33,191) | 29,036) | |||||
| Inventories | 15,285) | 16,509) | 17,270) | 17,895) | 14,951) | 18,025) | 17,183) | 18,632) | 15,651) | 18,326) | 17,703) | 16,212) | 14,080) | 15,213) | 13,976) | 14,647) | |||||
| Short-term Activity Ratio | |||||||||||||||||||||
| Inventory turnover1 | 11.41 | 9.94 | 9.32 | 8.78 | 10.60 | 8.77 | 9.04 | 8.18 | 9.62 | 8.05 | 8.15 | 8.64 | 9.55 | 8.48 | 8.92 | 7.81 | |||||
| Benchmarks | |||||||||||||||||||||
| Inventory Turnover, Competitors2 | |||||||||||||||||||||
| General Motors Co. | 11.00 | 10.18 | 9.90 | 9.98 | 10.37 | 8.56 | 8.24 | 8.16 | 8.59 | 7.85 | 7.66 | 7.31 | 8.26 | 7.32 | 6.33 | 7.06 | |||||
| Tesla Inc. | 6.27 | 6.47 | 5.25 | 5.75 | 6.68 | 5.47 | 5.53 | 4.86 | 5.81 | 5.61 | 5.14 | 4.60 | 4.72 | 5.32 | 6.04 | 6.78 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Inventory turnover
= (Cost of salesQ4 2025
+ Cost of salesQ3 2025
+ Cost of salesQ2 2025
+ Cost of salesQ1 2025)
÷ Inventories
= (51,622 + 43,411 + 44,245 + 35,188)
÷ 15,285 = 11.41
2 Click competitor name to see calculations.
The inventory turnover ratio exhibits fluctuations over the observed period, generally indicating changes in the efficiency of inventory management. An initial increase is followed by periods of relative stability and subsequent growth.
- Overall Trend
- The inventory turnover ratio generally increased from March 31, 2022, to December 31, 2025. While there are quarterly variations, the ratio moved from 7.81 to 11.41 over the entire period, suggesting improved inventory management efficiency.
- Initial Phase (Mar 31, 2022 – Dec 31, 2022)
- From March 31, 2022, to December 31, 2022, the inventory turnover ratio demonstrated an upward trend, increasing from 7.81 to 9.55. This suggests a more efficient conversion of inventory into sales during this period. Cost of sales also increased steadily during this time, from US$29,036 million to US$37,816 million, while inventories decreased from US$14,647 million to US$14,080 million.
- Stabilization and Fluctuations (Mar 31, 2023 – Dec 31, 2023)
- The first three quarters of 2023 showed a slight decrease in the inventory turnover ratio, moving from 8.64 to 8.05. However, the ratio rebounded to 9.62 by December 31, 2023. Cost of sales increased from US$34,669 million to US$40,862 million, while inventories increased from US$16,212 million to US$15,651 million. This period indicates some volatility but ultimately ended with a ratio comparable to the end of 2022.
- Continued Growth (Mar 31, 2024 – Dec 31, 2025)
- A consistent upward trend in the inventory turnover ratio is observed from March 31, 2024, through December 31, 2025. The ratio increased from 8.18 to 11.41. This coincides with a substantial increase in cost of sales, rising from US$36,476 million to US$51,622 million, while inventories experienced a net decrease, moving from US$18,632 million to US$15,285 million. The most significant increase in the ratio occurred between September 30, 2025, and December 31, 2025, indicating a substantial acceleration in inventory conversion.
The observed increases in the inventory turnover ratio, particularly in the latter part of the period, suggest improved efficiency in managing inventory levels relative to sales. This could be due to factors such as streamlined supply chain management, increased demand for products, or more effective inventory control practices.
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Receivables Turnover
Ford Motor Co., receivables turnover calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Company revenues excluding Ford Credit | 42,446) | 47,185) | 46,943) | 37,422) | 44,936) | 43,069) | 44,811) | 39,890) | 43,213) | 41,176) | 42,427) | 39,085) | 41,745) | 37,205) | 37,934) | 32,195) | |||||
| Trade and other receivables, less allowances | 15,398) | 19,199) | 19,709) | 17,225) | 14,723) | 16,469) | 16,802) | 18,698) | 15,601) | 15,129) | 14,482) | 14,920) | 15,729) | 14,764) | 15,037) | 13,031) | |||||
| Short-term Activity Ratio | |||||||||||||||||||||
| Receivables turnover1 | 11.30 | 9.19 | 8.75 | 9.88 | 11.73 | 10.38 | 10.06 | 8.92 | 10.63 | 10.87 | 11.08 | 10.45 | 9.48 | 9.66 | 9.22 | 9.58 | |||||
| Benchmarks | |||||||||||||||||||||
| Receivables Turnover, Competitors2 | |||||||||||||||||||||
| General Motors Co. | 12.87 | 9.96 | 10.23 | 11.53 | 13.38 | 12.14 | 12.16 | 11.63 | 12.74 | 11.36 | 11.12 | 10.79 | 10.80 | 9.59 | 9.60 | 9.82 | |||||
| Tesla Inc. | 20.72 | 20.33 | 24.16 | 25.31 | 22.11 | 29.32 | 25.51 | 24.37 | 27.59 | 38.07 | 27.28 | 28.75 | 27.60 | 34.15 | 32.28 | 26.91 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Receivables turnover
= (Company revenues excluding Ford CreditQ4 2025
+ Company revenues excluding Ford CreditQ3 2025
+ Company revenues excluding Ford CreditQ2 2025
+ Company revenues excluding Ford CreditQ1 2025)
÷ Trade and other receivables, less allowances
= (42,446 + 47,185 + 46,943 + 37,422)
÷ 15,398 = 11.30
2 Click competitor name to see calculations.
The receivables turnover ratio exhibited fluctuations over the observed period, spanning from March 31, 2022, to December 31, 2025. An initial period of relative stability was followed by an increase, then a subsequent decline, and a final recovery. The analysis below details these trends.
- Initial Period (Mar 31, 2022 – Dec 31, 2022)
- The receivables turnover ratio began at 9.58 and demonstrated modest variability, ranging between 9.22 and 9.66 during the first four quarters. This suggests a generally consistent efficiency in collecting receivables during this timeframe. A slight decrease was observed from the first to the second quarter, followed by a recovery, and then a minor decline by the end of the year.
- Increase (Mar 31, 2023 – Jun 30, 2023)
- A notable increase in the receivables turnover ratio occurred in the first half of 2023, rising from 10.45 to 11.08. This indicates an improved efficiency in converting receivables into cash, potentially due to more effective credit and collection policies or a change in customer payment behavior. This period represents the highest values observed throughout the entire period.
- Decline (Sep 30, 2023 – Mar 31, 2024)
- Following the peak in the first half of 2023, the ratio experienced a decline, reaching 8.92 by March 31, 2024. This suggests a slowdown in the rate at which receivables were being collected. The decrease could be attributed to factors such as extended credit terms, a rise in overdue accounts, or a decrease in sales during this period.
- Recovery and Final Period (Jun 30, 2024 – Dec 31, 2025)
- The ratio demonstrated a recovery starting in June 2024, increasing to 11.73 by December 2024. This positive trend continued into 2025, with fluctuations between 8.75 and 11.30. The final value of 11.30 indicates a return to a level of efficiency comparable to, and exceeding, that observed in the earlier part of 2023. The variability in the final period suggests ongoing adjustments in collection practices or external economic factors influencing payment cycles.
Overall, the receivables turnover ratio demonstrates a dynamic pattern, influenced by internal operational changes and potentially external economic conditions. While fluctuations are present, the ratio generally indicates a healthy ability to manage and collect receivables, with a notable improvement in efficiency towards the end of the analyzed period.
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Payables Turnover
Ford Motor Co., payables turnover calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Cost of sales | 51,622) | 43,411) | 44,245) | 35,188) | 41,301) | 40,168) | 40,489) | 36,476) | 40,862) | 37,548) | 37,471) | 34,669) | 37,816) | 34,354) | 33,191) | 29,036) | |||||
| Payables | 25,809) | 27,868) | 27,756) | 26,259) | 24,128) | 27,424) | 25,458) | 27,384) | 25,992) | 27,813) | 27,749) | 26,028) | 25,605) | 27,051) | 23,378) | 23,256) | |||||
| Short-term Activity Ratio | |||||||||||||||||||||
| Payables turnover1 | 6.76 | 5.89 | 5.80 | 5.98 | 6.57 | 5.76 | 6.10 | 5.56 | 5.79 | 5.30 | 5.20 | 5.38 | 5.25 | 4.77 | 5.33 | 4.92 | |||||
| Benchmarks | |||||||||||||||||||||
| Payables Turnover, Competitors2 | |||||||||||||||||||||
| General Motors Co. | 6.65 | 5.71 | 5.65 | 5.65 | 5.88 | 5.00 | 5.04 | 4.87 | 5.03 | 4.58 | 4.60 | 4.49 | 4.62 | 4.46 | 4.12 | 4.15 | |||||
| Tesla Inc. | 5.81 | 6.19 | 5.79 | 5.85 | 6.43 | 5.42 | 6.01 | 5.29 | 5.48 | 5.52 | 4.83 | 4.16 | 3.97 | 3.95 | 4.37 | 4.06 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Payables turnover
= (Cost of salesQ4 2025
+ Cost of salesQ3 2025
+ Cost of salesQ2 2025
+ Cost of salesQ1 2025)
÷ Payables
= (51,622 + 43,411 + 44,245 + 35,188)
÷ 25,809 = 6.76
2 Click competitor name to see calculations.
The payables turnover ratio exhibits a generally stable pattern with some fluctuations over the observed period. Initial values indicate a range between 4.92 and 5.33 during the first half of 2022. A slight increase is then observed through the end of 2022, culminating in a ratio of 5.79 in the December quarter. This upward momentum continues into the first half of 2023, peaking at 6.10, before stabilizing around the 5.76 to 5.89 range through the end of 2024. The most recent quarters show a further increase, reaching 6.76 by December 2025.
- Overall Trend
- The overall trend suggests an increasing efficiency in managing payables over the analyzed timeframe. While there are quarterly variations, the ratio generally trends upward, indicating the company is becoming more efficient at paying its suppliers. The increase from approximately 5.0 in early 2022 to 6.76 in late 2025 represents a significant improvement.
- Short-Term Fluctuations
- Within the broader trend, short-term fluctuations are present. The ratio decreased slightly from June to September 2022, potentially due to seasonal factors or changes in purchasing patterns. A similar, though less pronounced, dip is observed between June and September 2024. These fluctuations suggest that the payables turnover is not entirely consistent quarter to quarter.
- Correlation with Cost of Sales
- A review of the cost of sales alongside the payables turnover reveals a complex relationship. While both metrics generally increase over time, the payables turnover appears to be increasing at a faster rate than the cost of sales, particularly in the latter half of the period. This suggests improved management of supplier credit terms or more efficient procurement processes. The cost of sales increased significantly in the December 2025 quarter, and the payables turnover increased commensurately, indicating the company was able to manage the increased costs effectively.
- Recent Performance
- The most recent quarters (September and December 2025) demonstrate the highest payables turnover ratios observed throughout the entire period. This suggests a recent intensification of efforts to optimize payables management, or a change in supplier relationships that allows for quicker payment cycles.
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Working Capital Turnover
Ford Motor Co., working capital turnover calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Current assets | 123,487) | 130,720) | 126,612) | 123,054) | 124,474) | 125,099) | 120,518) | 120,595) | 121,481) | 121,361) | 121,712) | 115,123) | 116,476) | 108,088) | 100,469) | 106,142) | |||||
| Less: Current liabilities | 114,890) | 116,648) | 114,988) | 108,732) | 106,859) | 109,036) | 103,403) | 103,206) | 101,531) | 100,268) | 101,015) | 95,905) | 96,866) | 90,167) | 86,452) | 90,352) | |||||
| Working capital | 8,597) | 14,072) | 11,624) | 14,322) | 17,615) | 16,063) | 17,115) | 17,389) | 19,950) | 21,093) | 20,697) | 19,218) | 19,610) | 17,921) | 14,017) | 15,790) | |||||
| Company revenues excluding Ford Credit | 42,446) | 47,185) | 46,943) | 37,422) | 44,936) | 43,069) | 44,811) | 39,890) | 43,213) | 41,176) | 42,427) | 39,085) | 41,745) | 37,205) | 37,934) | 32,195) | |||||
| Short-term Activity Ratio | |||||||||||||||||||||
| Working capital turnover1 | 20.24 | 12.54 | 14.83 | 11.89 | 9.80 | 10.64 | 9.88 | 9.59 | 8.32 | 7.80 | 7.75 | 8.12 | 7.60 | 7.96 | 9.89 | 7.91 | |||||
| Benchmarks | |||||||||||||||||||||
| Working Capital Turnover, Competitors2 | |||||||||||||||||||||
| General Motors Co. | 10.89 | 7.99 | 8.36 | 8.94 | 13.97 | 8.38 | 9.76 | 10.90 | 21.98 | 11.38 | 11.11 | 17.09 | 15.52 | 10.96 | 10.19 | 12.98 | |||||
| Tesla Inc. | 2.57 | 2.87 | 2.98 | 3.23 | 3.31 | 3.77 | 3.78 | 4.49 | 4.64 | 5.22 | 5.77 | 5.53 | 5.73 | 6.58 | 7.14 | 8.19 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Working capital turnover
= (Company revenues excluding Ford CreditQ4 2025
+ Company revenues excluding Ford CreditQ3 2025
+ Company revenues excluding Ford CreditQ2 2025
+ Company revenues excluding Ford CreditQ1 2025)
÷ Working capital
= (42,446 + 47,185 + 46,943 + 37,422)
÷ 8,597 = 20.24
2 Click competitor name to see calculations.
The working capital turnover ratio exhibited considerable fluctuation throughout the observed period, spanning from March 31, 2022, to December 31, 2025. An initial decline is followed by a period of relative stability, then a marked increase towards the end of the timeframe. The ratio generally indicates how efficiently the company is utilizing its working capital to generate sales.
- Initial Period (Mar 31, 2022 – Dec 31, 2022)
- The ratio began at 7.91 in March 2022, increased to a peak of 9.89 in June 2022, before declining to 7.60 by December 2022. This initial fluctuation suggests varying levels of efficiency in working capital utilization during this period. The increase in June 2022 coincided with a substantial rise in revenues, indicating a positive correlation between sales and working capital turnover.
- Stabilization and Gradual Increase (Mar 31, 2023 – Dec 31, 2023)
- From March 2023 through December 2023, the ratio remained relatively stable, fluctuating between 7.75 and 8.32. This suggests a consistent, though not dramatically improving, level of working capital efficiency. Revenues also showed a more consistent pattern during this time, supporting the observation of stability in the turnover ratio.
- Significant Upward Trend (Mar 31, 2024 – Dec 31, 2025)
- A notable upward trend commenced in March 2024, with the ratio increasing from 9.59 to a high of 20.24 by December 2025. This represents a substantial improvement in working capital efficiency. The ratio increased from 9.88 in June 2024 to 10.64 in September 2024, and continued to climb rapidly in the subsequent quarters. This increase occurred alongside fluctuations in revenue, but the turnover ratio consistently outpaced revenue growth, indicating improved operational efficiency. The most significant jump occurred between September 2025 (12.54) and December 2025 (20.24).
Overall, the working capital turnover ratio demonstrates a clear positive trend in the latter portion of the analyzed period. While initial fluctuations were observed, the company appears to have significantly improved its ability to generate revenue from its working capital investments, particularly in the final year of the observation period. Further investigation into the factors driving this improvement, such as changes in inventory management, accounts receivable collection policies, or accounts payable terms, would be beneficial.
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Average Inventory Processing Period
Ford Motor Co., average inventory processing period calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||
| Inventory turnover | 11.41 | 9.94 | 9.32 | 8.78 | 10.60 | 8.77 | 9.04 | 8.18 | 9.62 | 8.05 | 8.15 | 8.64 | 9.55 | 8.48 | 8.92 | 7.81 | |||||
| Short-term Activity Ratio (no. days) | |||||||||||||||||||||
| Average inventory processing period1 | 32 | 37 | 39 | 42 | 34 | 42 | 40 | 45 | 38 | 45 | 45 | 42 | 38 | 43 | 41 | 47 | |||||
| Benchmarks (no. days) | |||||||||||||||||||||
| Average Inventory Processing Period, Competitors2 | |||||||||||||||||||||
| General Motors Co. | 33 | 36 | 37 | 37 | 35 | 43 | 44 | 45 | 43 | 46 | 48 | 50 | 44 | 50 | 58 | 52 | |||||
| Tesla Inc. | 58 | 56 | 70 | 63 | 55 | 67 | 66 | 75 | 63 | 65 | 71 | 79 | 77 | 69 | 60 | 54 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 11.41 = 32
2 Click competitor name to see calculations.
The average inventory processing period exhibited fluctuations over the observed timeframe, generally trending downwards with periods of stabilization and slight increases. An initial decrease was followed by periods of relative consistency before concluding with a notable reduction.
- Overall Trend
- The average inventory processing period began at 47 days in March 2022. It generally decreased over the period, ending at 32 days in December 2025. While not consistently declining, the overall trajectory indicates improved efficiency in inventory management.
- Initial Phase (Mar 31, 2022 – Dec 31, 2022)
- From March 2022 to December 2022, the average inventory processing period decreased from 47 days to 38 days. This represents a 19% reduction, suggesting initial improvements in the speed at which inventory was sold and replenished. There was a slight increase from 47 to 41 days in the first quarter, followed by a more pronounced decrease.
- Stabilization and Fluctuation (Mar 31, 2023 – Sep 30, 2024)
- The period from March 2023 to September 2024 saw the average inventory processing period fluctuate between 38 and 45 days. While there were increases and decreases, the period remained relatively stable compared to the initial decline. The inventory processing period increased to 45 days in both June 2023 and September 2023, before decreasing to 40 days in March 2024.
- Final Decline (Dec 31, 2024 – Dec 31, 2025)
- A more significant downward trend was observed from December 2024 to December 2025. The average inventory processing period decreased from 34 days to 32 days, representing a further improvement in inventory turnover efficiency. This final period demonstrates a sustained ability to reduce the time inventory is held.
The observed changes in the average inventory processing period correlate with the inventory turnover ratio, which generally increased over the same period. This suggests that improvements in inventory management practices have contributed to both faster inventory turnover and reduced holding times.
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Average Receivable Collection Period
Ford Motor Co., average receivable collection period calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||
| Receivables turnover | 11.30 | 9.19 | 8.75 | 9.88 | 11.73 | 10.38 | 10.06 | 8.92 | 10.63 | 10.87 | 11.08 | 10.45 | 9.48 | 9.66 | 9.22 | 9.58 | |||||
| Short-term Activity Ratio (no. days) | |||||||||||||||||||||
| Average receivable collection period1 | 32 | 40 | 42 | 37 | 31 | 35 | 36 | 41 | 34 | 34 | 33 | 35 | 39 | 38 | 40 | 38 | |||||
| Benchmarks (no. days) | |||||||||||||||||||||
| Average Receivable Collection Period, Competitors2 | |||||||||||||||||||||
| General Motors Co. | 28 | 37 | 36 | 32 | 27 | 30 | 30 | 31 | 29 | 32 | 33 | 34 | 34 | 38 | 38 | 37 | |||||
| Tesla Inc. | 18 | 18 | 15 | 14 | 17 | 12 | 14 | 15 | 13 | 10 | 13 | 13 | 13 | 11 | 11 | 14 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 11.30 = 32
2 Click competitor name to see calculations.
The average receivable collection period exhibited fluctuations over the observed timeframe. Initially, the period remained relatively stable, followed by a period of improvement, and then a return to levels closer to the initial values, concluding with a final improvement.
- Overall Trend
- From March 31, 2022, through December 31, 2022, the average collection period remained within a narrow range of 38 to 40 days. A noticeable decrease began in the first quarter of 2023, reaching a low of 32 days by the end of 2023. Subsequently, the period increased to 42 days by June 30, 2025, before decreasing again to 32 days by December 31, 2025.
- Short-Term Fluctuations
- A slight increase was observed from the March 31, 2022, value of 38 days to 40 days by June 30, 2022. The period then returned to 38 days by September 30, 2022, before increasing slightly to 39 days by December 31, 2022. The most significant decrease occurred between March 31, 2023 (35 days) and December 31, 2023 (34 days), followed by a more substantial drop to 31 days by December 31, 2023.
- Recent Performance
- The period experienced an increase in the first half of 2025, rising from 37 days on March 31, 2025, to 42 days on June 30, 2025. However, this was followed by a decrease to 32 days by December 31, 2025, indicating a potential return to more efficient collection practices in the latter part of the year.
- Comparison to Initial Values
- The average collection period at the end of the observation period (32 days) was lower than the initial value recorded on March 31, 2022 (38 days). This suggests an overall improvement in the efficiency of collecting receivables over the analyzed period, despite the interim fluctuations.
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Operating Cycle
Ford Motor Co., operating cycle calculation (quarterly data)
No. days
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||
| Average inventory processing period | 32 | 37 | 39 | 42 | 34 | 42 | 40 | 45 | 38 | 45 | 45 | 42 | 38 | 43 | 41 | 47 | |||||
| Average receivable collection period | 32 | 40 | 42 | 37 | 31 | 35 | 36 | 41 | 34 | 34 | 33 | 35 | 39 | 38 | 40 | 38 | |||||
| Short-term Activity Ratio | |||||||||||||||||||||
| Operating cycle1 | 64 | 77 | 81 | 79 | 65 | 77 | 76 | 86 | 72 | 79 | 78 | 77 | 77 | 81 | 81 | 85 | |||||
| Benchmarks | |||||||||||||||||||||
| Operating Cycle, Competitors2 | |||||||||||||||||||||
| General Motors Co. | 61 | 73 | 73 | 69 | 62 | 73 | 74 | 76 | 72 | 78 | 81 | 84 | 78 | 88 | 96 | 89 | |||||
| Tesla Inc. | 76 | 74 | 85 | 77 | 72 | 79 | 80 | 90 | 76 | 75 | 84 | 92 | 90 | 80 | 71 | 68 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 32 + 32 = 64
2 Click competitor name to see calculations.
The operating cycle exhibited a generally decreasing trend over the observed period, with some quarterly fluctuations. Initial values in the first quarter of 2022 were relatively high, but generally declined through the end of 2023 before showing some increase again in 2024 and 2025. Analysis of the component ratios reveals insights into these movements.
- Average Inventory Processing Period
- The average inventory processing period demonstrated variability throughout the period. It began at 47 days in March 2022, decreased to a low of 38 days by December 2022, and then fluctuated between 38 and 45 days through the first three quarters of 2023. A slight increase was observed in the first quarter of 2024 to 45 days, followed by a decrease to 32 days by the end of 2025. This suggests improving inventory management efficiency over the long term, though with some short-term inconsistencies.
- Average Receivable Collection Period
- The average receivable collection period showed a similar pattern of fluctuation. Starting at 38 days in March 2022, it remained relatively stable around 38-40 days for the next three quarters. A decrease to 33 days was noted in June 2023, followed by a rise to 41 days in March 2024. The period then decreased to 32 days by December 2025. This indicates some volatility in the company’s ability to collect receivables, but an overall improvement in collection efficiency over the period.
- Operating Cycle
- The operating cycle, calculated as the sum of the average inventory processing period and the average receivable collection period, began at 85 days in March 2022. It generally trended downward, reaching a low of 64 days in December 2025. The most significant decrease occurred between September 2022 and December 2023, dropping from 79 days to 72 days. A slight increase was observed in the first quarter of 2024, rising to 86 days, before resuming the downward trend. The fluctuations in the operating cycle correlate with the changes observed in its component ratios, suggesting that improvements in both inventory management and receivable collection contribute to a shorter operating cycle.
Overall, the observed trends suggest a gradual improvement in the efficiency of the company’s operating cycle. While quarterly variations exist, the general direction points towards a reduction in the time required to convert investments in inventory and receivables into cash.
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Average Payables Payment Period
Ford Motor Co., average payables payment period calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||
| Payables turnover | 6.76 | 5.89 | 5.80 | 5.98 | 6.57 | 5.76 | 6.10 | 5.56 | 5.79 | 5.30 | 5.20 | 5.38 | 5.25 | 4.77 | 5.33 | 4.92 | |||||
| Short-term Activity Ratio (no. days) | |||||||||||||||||||||
| Average payables payment period1 | 54 | 62 | 63 | 61 | 56 | 63 | 60 | 66 | 63 | 69 | 70 | 68 | 70 | 77 | 68 | 74 | |||||
| Benchmarks (no. days) | |||||||||||||||||||||
| Average Payables Payment Period, Competitors2 | |||||||||||||||||||||
| General Motors Co. | 55 | 64 | 65 | 65 | 62 | 73 | 72 | 75 | 73 | 80 | 79 | 81 | 79 | 82 | 89 | 88 | |||||
| Tesla Inc. | 63 | 59 | 63 | 62 | 57 | 67 | 61 | 69 | 67 | 66 | 76 | 88 | 92 | 92 | 84 | 90 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 6.76 = 54
2 Click competitor name to see calculations.
The average payables payment period exhibited fluctuations over the observed period, generally trending downwards with some quarterly variations. Initial values indicated a period of 74 days in March 2022, followed by a decrease to 68 days by June 2022. Subsequent quarters saw an increase to 77 days in September 2022 before decreasing again to 70 days by the end of the year.
- Overall Trend
- From March 2022 through December 2023, the average payables payment period demonstrated a generally decreasing trend, although not consistently. The period ranged from a high of 77 days to a low of 60 days. A more pronounced downward trend became apparent in 2024 and continued into the first half of 2025.
The period remained relatively stable between 61 and 70 days throughout much of 2023. However, a noticeable decline began in the first quarter of 2024, reaching 60 days by June 2024. This downward momentum continued, with the period decreasing to 54 days by December 2025, representing the lowest value observed during the analyzed timeframe.
- Recent Performance (2024-2025)
- The most recent quarters show a consistent reduction in the average payables payment period. The decrease from 66 days in March 2024 to 54 days in December 2025 suggests improved efficiency in managing payments to suppliers or a change in payment terms negotiated with those suppliers. This could also indicate a strengthening of the company’s liquidity position.
The fluctuations observed throughout the period may be attributable to various factors, including seasonal variations in purchasing activity, changes in supplier relationships, or deliberate adjustments to working capital management strategies. The recent and sustained decrease warrants further investigation to understand the underlying drivers and potential implications for the company’s financial health.
- Quarterly Variations
- The largest single-quarter decrease occurred between September 2023 and December 2023 (from 69 to 63 days). The smallest change was observed between March 2023 and June 2023 (from 68 to 70 days). These variations suggest that external factors or specific business events may have influenced payment practices in certain periods.
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Cash Conversion Cycle
Ford Motor Co., cash conversion cycle calculation (quarterly data)
No. days
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||
| Average inventory processing period | 32 | 37 | 39 | 42 | 34 | 42 | 40 | 45 | 38 | 45 | 45 | 42 | 38 | 43 | 41 | 47 | |||||
| Average receivable collection period | 32 | 40 | 42 | 37 | 31 | 35 | 36 | 41 | 34 | 34 | 33 | 35 | 39 | 38 | 40 | 38 | |||||
| Average payables payment period | 54 | 62 | 63 | 61 | 56 | 63 | 60 | 66 | 63 | 69 | 70 | 68 | 70 | 77 | 68 | 74 | |||||
| Short-term Activity Ratio | |||||||||||||||||||||
| Cash conversion cycle1 | 10 | 15 | 18 | 18 | 9 | 14 | 16 | 20 | 9 | 10 | 8 | 9 | 7 | 4 | 13 | 11 | |||||
| Benchmarks | |||||||||||||||||||||
| Cash Conversion Cycle, Competitors2 | |||||||||||||||||||||
| General Motors Co. | 6 | 9 | 8 | 4 | 0 | 0 | 2 | 1 | -1 | -2 | 2 | 3 | -1 | 6 | 7 | 1 | |||||
| Tesla Inc. | 13 | 15 | 22 | 15 | 15 | 12 | 19 | 21 | 9 | 9 | 8 | 4 | -2 | -12 | -13 | -22 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 32 + 32 – 54 = 10
2 Click competitor name to see calculations.
The cash conversion cycle exhibited fluctuations over the observed period, ranging from March 31, 2022, to December 31, 2025. Generally, the cycle demonstrated a tendency towards volatility, with periods of increase and decrease. A review of the component ratios reveals the underlying drivers of these changes.
- Average Inventory Processing Period
- The average inventory processing period remained relatively stable, fluctuating between 32 and 47 days. A slight downward trend was observed from 2022 through 2023, followed by a return to levels similar to those seen in 2022 during 2024 and 2025. The period concluded at 32 days, representing a decrease from the 47 days recorded at the beginning of the analyzed timeframe.
- Average Receivable Collection Period
- The average receivable collection period showed more variability. It initially hovered around 38-40 days in 2022, decreased to a low of 31 days by the end of 2023, and then increased again, peaking at 42 days in June 2025 before decreasing to 32 days by the end of 2025. This suggests potential shifts in credit policies or customer payment behavior.
- Average Payables Payment Period
- The average payables payment period generally decreased over the period, starting at 74 days in March 2022 and falling to 54 days by December 2025. This indicates a strengthening of the company’s negotiating position with suppliers or a deliberate strategy to optimize payment terms. The decrease was not linear, with some quarterly fluctuations.
- Cash Conversion Cycle
- The cash conversion cycle initially remained low, between 4 and 13 days, through the first half of 2023. A significant increase was then observed, peaking at 20 days in March 2024. The cycle then decreased again, ending at 10 days in December 2025. The fluctuations in the cash conversion cycle appear to be primarily driven by the interplay between the receivable collection period and the payables payment period, with the inventory processing period exhibiting less influence. The increase in the cycle in early 2024 suggests a potential slowdown in working capital efficiency, while the subsequent decrease indicates a recovery.
In summary, the company experienced a dynamic period regarding its short-term operating activity. While inventory management remained relatively consistent, changes in receivable and payable management significantly impacted the cash conversion cycle. The observed trends suggest a potential for ongoing optimization of working capital management practices.
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