Stock Analysis on Net

Ford Motor Co. (NYSE:F)

Analysis of Operating Leases

Microsoft Excel

An operating lease is treated like a rental contract. Neither the leased asset nor the associated liability is reported on the lessee balance sheet, but the rights may be very similar to the rights of an owner. The lessee only records the lease payments as a rental expense in income statement.


Adjustments to Financial Statements for Operating Leases

Ford Motor Co., adjustments to financial statements

US$ in millions

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Adjustment to Total Assets
Total assets (as reported) 285,196 273,310 255,884 257,035 267,261
Add: Operating lease right-of-use asset (before adoption of FASB Topic 842)1
Total assets (adjusted) 285,196 273,310 255,884 257,035 267,261
Adjustment to Total Debt
Total debt (as reported) 158,522 149,231 138,969 138,092 161,684
Add: Operating lease liability (before adoption of FASB Topic 842)2
Add: Current operating lease liabilities 558 481 404 345 323
Add: Non-current operating lease liabilities 1,782 1,395 1,101 1,048 991
Total debt (adjusted) 160,862 151,107 140,474 139,485 162,998

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

1, 2 Equal to total present value of future operating lease payments.


Ford Motor Co., Financial Data: Reported vs. Adjusted


Adjusted Financial Ratios for Operating Leases (Summary)

Ford Motor Co., adjusted financial ratios

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Total Asset Turnover1
Reported total asset turnover 0.61 0.61 0.58 0.49 0.43
Adjusted total asset turnover 0.61 0.61 0.58 0.49 0.43
Debt to Equity2
Reported debt to equity 3.54 3.49 3.21 2.85 5.27
Adjusted debt to equity 3.59 3.53 3.25 2.87 5.31
Return on Assets3 (ROA)
Reported ROA 2.06% 1.59% -0.77% 6.98% -0.48%
Adjusted ROA 2.06% 1.59% -0.77% 6.98% -0.48%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Ford Motor Co. adjusted total asset turnover ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024.
Adjusted debt to equity A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. Ford Motor Co. adjusted debt to equity ratio deteriorated from 2022 to 2023 and from 2023 to 2024.
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Ford Motor Co. adjusted ROA improved from 2022 to 2023 and from 2023 to 2024.

Ford Motor Co., Financial Ratios: Reported vs. Adjusted


Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Company revenues excluding Ford Credit 172,706 165,901 149,079 126,268 115,941
Total assets 285,196 273,310 255,884 257,035 267,261
Activity Ratio
Total asset turnover1 0.61 0.61 0.58 0.49 0.43
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Company revenues excluding Ford Credit 172,706 165,901 149,079 126,268 115,941
Adjusted total assets 285,196 273,310 255,884 257,035 267,261
Activity Ratio
Adjusted total asset turnover2 0.61 0.61 0.58 0.49 0.43

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

1 Total asset turnover = Company revenues excluding Ford Credit ÷ Total assets
= 172,706 ÷ 285,196 = 0.61

2 Adjusted total asset turnover = Company revenues excluding Ford Credit ÷ Adjusted total assets
= 172,706 ÷ 285,196 = 0.61

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Ford Motor Co. adjusted total asset turnover ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024.

Adjusted Debt to Equity

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Total debt 158,522 149,231 138,969 138,092 161,684
Equity attributable to Ford Motor Company 44,835 42,773 43,242 48,519 30,690
Solvency Ratio
Debt to equity1 3.54 3.49 3.21 2.85 5.27
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Adjusted total debt 160,862 151,107 140,474 139,485 162,998
Equity attributable to Ford Motor Company 44,835 42,773 43,242 48,519 30,690
Solvency Ratio
Adjusted debt to equity2 3.59 3.53 3.25 2.87 5.31

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

1 Debt to equity = Total debt ÷ Equity attributable to Ford Motor Company
= 158,522 ÷ 44,835 = 3.54

2 Adjusted debt to equity = Adjusted total debt ÷ Equity attributable to Ford Motor Company
= 160,862 ÷ 44,835 = 3.59

Solvency ratio Description The company
Adjusted debt-to-equity A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. Ford Motor Co. adjusted debt-to-equity ratio deteriorated from 2022 to 2023 and from 2023 to 2024.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to Ford Motor Company 5,879 4,347 (1,981) 17,937 (1,279)
Total assets 285,196 273,310 255,884 257,035 267,261
Profitability Ratio
ROA1 2.06% 1.59% -0.77% 6.98% -0.48%
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Net income (loss) attributable to Ford Motor Company 5,879 4,347 (1,981) 17,937 (1,279)
Adjusted total assets 285,196 273,310 255,884 257,035 267,261
Profitability Ratio
Adjusted ROA2 2.06% 1.59% -0.77% 6.98% -0.48%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

1 ROA = 100 × Net income (loss) attributable to Ford Motor Company ÷ Total assets
= 100 × 5,879 ÷ 285,196 = 2.06%

2 Adjusted ROA = 100 × Net income (loss) attributable to Ford Motor Company ÷ Adjusted total assets
= 100 × 5,879 ÷ 285,196 = 2.06%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Ford Motor Co. adjusted ROA improved from 2022 to 2023 and from 2023 to 2024.