Stock Analysis on Net

Ford Motor Co. (NYSE:F)

Financial Reporting Quality: Aggregate Accruals

Microsoft Excel

Earnings can be decomposed into cash and accrual components. The accrual component (aggregate accruals) has been found to have less persistence than the cash component, and therefore (1) earnings with higher accrual component are less persistent than earnings with smaller accrual component, all else equal; and (2) the cash component of earnings should receive a higher weighting evaluating company performance.


Balance-Sheet-Based Accruals Ratio

Ford Motor Co., balance sheet computation of aggregate accruals

US$ in millions

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Operating Assets
Total assets 285,196 273,310 255,884 257,035 267,261
Less: Cash and cash equivalents 22,935 24,862 25,134 20,540 25,243
Less: Marketable securities 15,413 15,309 18,936 29,053 24,718
Operating assets 246,848 233,139 211,814 207,442 217,300
Operating Liabilities
Total liabilities 240,338 230,512 212,717 208,413 236,450
Less: Debt payable within one year 54,949 49,669 50,164 49,692 51,343
Less: Long-term debt payable after one year 103,573 99,562 88,805 88,400 110,341
Operating liabilities 81,816 81,281 73,748 70,321 74,766
 
Net operating assets1 165,032 151,858 138,066 137,121 142,534
Balance-sheet-based aggregate accruals2 13,174 13,792 945 (5,413)
Financial Ratio
Balance-sheet-based accruals ratio3 8.31% 9.51% 0.69% -3.87%
Benchmarks
Balance-Sheet-Based Accruals Ratio, Competitors4
General Motors Co. 2.77% 4.95% 6.06% 11.54%
Tesla Inc. 13.13% 38.86% 25.68% 25.45%
Balance-Sheet-Based Accruals Ratio, Sector
Automobiles & Components 6.37% 10.25% 5.19% 5.14%
Balance-Sheet-Based Accruals Ratio, Industry
Consumer Discretionary 12.16% 12.17% 12.67% 12.65%

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 2024 Calculation
Net operating assets = Operating assets – Operating liabilities
= 246,84881,816 = 165,032

2 2024 Calculation
Balance-sheet-based aggregate accruals = Net operating assets2024 – Net operating assets2023
= 165,032151,858 = 13,174

3 2024 Calculation
Balance-sheet-based accruals ratio = 100 × Balance-sheet-based aggregate accruals ÷ Avg. net operating assets
= 100 × 13,174 ÷ [(165,032 + 151,858) ÷ 2] = 8.31%

4 Click competitor name to see calculations.

Financial ratio Description The company
Balance-sheet-based accruals ratio Ratio is found by dividing balance-sheet-based aggregate accruals by average net operating assets. Using the balance-sheet-based accruals ratio, Ford Motor Co. improved earnings quality from 2023 to 2024.

Cash-Flow-Statement-Based Accruals Ratio

Ford Motor Co., cash flow statement computation of aggregate accruals

US$ in millions

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net income (loss) attributable to Ford Motor Company 5,879 4,347 (1,981) 17,937 (1,279)
Less: Net cash provided by operating activities 15,423 14,918 6,853 15,787 24,269
Less: Net cash (used in) provided by investing activities (24,370) (17,628) (4,347) 2,745 (18,615)
Cash-flow-statement-based aggregate accruals 14,826 7,057 (4,487) (595) (6,933)
Financial Ratio
Cash-flow-statement-based accruals ratio1 9.36% 4.87% -3.26% -0.43%
Benchmarks
Cash-Flow-Statement-Based Accruals Ratio, Competitors2
General Motors Co. 3.86% 2.42% 7.79% 8.08%
Tesla Inc. 25.75% 52.06% 41.27% 10.29%
Cash-Flow-Statement-Based Accruals Ratio, Sector
Automobiles & Components 8.77% 8.36% 5.47% 4.21%
Cash-Flow-Statement-Based Accruals Ratio, Industry
Consumer Discretionary 9.69% 4.57% 1.83% 11.33%

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 2024 Calculation
Cash-flow-statement-based accruals ratio = 100 × Cash-flow-statement-based aggregate accruals ÷ Avg. net operating assets
= 100 × 14,826 ÷ [(165,032 + 151,858) ÷ 2] = 9.36%

2 Click competitor name to see calculations.

Financial ratio Description The company
Cash-flow-statement-based accruals ratio Ratio is found by dividing cash-flow-statement-based aggregate accruals by average net operating assets. Using the cash-flow-statement-based accruals ratio, Ford Motor Co. deteriorated earnings quality from 2023 to 2024.