Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Ford Motor Co., solvency ratios
Based on: 10-K (reporting date: 2025-12-31), 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).
The solvency position exhibited a generally weakening trend over the five-year period. Measures of leverage consistently increased, while coverage ratios demonstrated significant volatility, including periods of concern.
- Debt Levels
- Debt to equity, both with and without the inclusion of operating lease liabilities, increased steadily from 2.85 and 2.87 in 2021 to 4.54 and 4.61 in 2025, respectively. This indicates a growing reliance on debt financing relative to equity. Debt to capital followed a similar pattern, rising from 0.74 to 0.82 over the same period. Debt to assets remained relatively stable between 0.54 and 0.57, suggesting that the increase in debt was broadly aligned with asset growth, but the overall proportion of assets financed by debt increased slightly.
- Leverage
- Financial leverage increased from 5.30 in 2021 to 8.04 in 2025, reinforcing the observation of increasing debt utilization. This suggests a greater proportion of assets are financed by debt, amplifying both potential returns and risks.
- Coverage Ratios
- Interest coverage experienced substantial fluctuations. It began at a healthy 10.86 in 2021, but declined sharply to -1.40 in 2022 before recovering to 4.05 in 2023 and 7.49 in 2024. However, it fell dramatically again to -8.43 in 2025, indicating an inability to cover interest expense with earnings in both 2022 and 2025. Fixed charge coverage mirrored this pattern, starting at 8.91, falling to -0.75 in 2022, recovering to 3.11 in 2023 and 5.10 in 2024, and then declining to -4.92 in 2025. The negative values in 2022 and 2025 for both ratios are particularly concerning, suggesting periods where the entity’s earnings were insufficient to meet its fixed financial obligations.
In summary, while the entity maintained a relatively stable debt-to-asset ratio, the increasing debt-to-equity and financial leverage ratios, coupled with the volatile and ultimately negative interest and fixed charge coverage ratios in the later years, point to a deteriorating solvency position and increased financial risk.
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Debt Ratios
Coverage Ratios
Debt to Equity
Ford Motor Co., debt to equity calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Debt payable within one year | 57,302) | 54,949) | 49,669) | 50,164) | 49,692) | |
| Long-term debt payable after one year | 106,034) | 103,573) | 99,562) | 88,805) | 88,400) | |
| Total debt | 163,336) | 158,522) | 149,231) | 138,969) | 138,092) | |
| Equity attributable to Ford Motor Company | 35,952) | 44,835) | 42,773) | 43,242) | 48,519) | |
| Solvency Ratio | ||||||
| Debt to equity1 | 4.54 | 3.54 | 3.49 | 3.21 | 2.85 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| General Motors Co. | 2.13 | 2.06 | 1.89 | 1.69 | 1.83 | |
| Tesla Inc. | 0.10 | 0.11 | 0.08 | 0.07 | 0.23 | |
| Debt to Equity, Sector | ||||||
| Automobiles & Components | 1.69 | 1.64 | 1.63 | 1.65 | 1.84 | |
| Debt to Equity, Industry | ||||||
| Consumer Discretionary | 0.92 | 1.10 | 1.34 | 1.51 | 1.50 | |
Based on: 10-K (reporting date: 2025-12-31), 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).
1 2025 Calculation
Debt to equity = Total debt ÷ Equity attributable to Ford Motor Company
= 163,336 ÷ 35,952 = 4.54
2 Click competitor name to see calculations.
The debt to equity ratio exhibits a consistent upward trend over the five-year period. This indicates a growing reliance on debt financing relative to equity financing.
- Debt to Equity Ratio Trend
- In 2021, the debt to equity ratio stood at 2.85. This increased to 3.21 in 2022, and continued to rise to 3.49 in 2023. The ratio experienced a further, albeit smaller, increase to 3.54 in 2024. The most significant change occurred between 2024 and 2025, with the ratio reaching 4.54.
Total debt increased steadily throughout the period, moving from US$138,092 million in 2021 to US$163,336 million in 2025. Equity attributable to Ford Motor Company initially decreased from US$48,519 million in 2021 to US$42,773 million in 2023, before a slight recovery to US$44,835 million in 2024. However, equity then decreased substantially to US$35,952 million in 2025.
- Debt and Equity Movements
- The increase in the debt to equity ratio is attributable to both the absolute increase in total debt and the decrease in equity, particularly the significant decline observed in 2025. The combined effect of these movements has amplified the ratio over time.
The substantial increase in the debt to equity ratio in 2025 warrants further investigation. The decrease in equity during this year appears to be the primary driver of this change, and understanding the reasons behind this decline is crucial for assessing the company’s financial health.
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Debt to Equity (including Operating Lease Liability)
Ford Motor Co., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Debt payable within one year | 57,302) | 54,949) | 49,669) | 50,164) | 49,692) | |
| Long-term debt payable after one year | 106,034) | 103,573) | 99,562) | 88,805) | 88,400) | |
| Total debt | 163,336) | 158,522) | 149,231) | 138,969) | 138,092) | |
| Current operating lease liabilities | 567) | 558) | 481) | 404) | 345) | |
| Non-current operating lease liabilities | 1,835) | 1,782) | 1,395) | 1,101) | 1,048) | |
| Total debt (including operating lease liability) | 165,738) | 160,862) | 151,107) | 140,474) | 139,485) | |
| Equity attributable to Ford Motor Company | 35,952) | 44,835) | 42,773) | 43,242) | 48,519) | |
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | 4.61 | 3.59 | 3.53 | 3.25 | 2.87 | |
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| General Motors Co. | 2.15 | 2.08 | 1.91 | 1.71 | 1.85 | |
| Tesla Inc. | 0.18 | 0.19 | 0.15 | 0.13 | 0.29 | |
| Debt to Equity (including Operating Lease Liability), Sector | ||||||
| Automobiles & Components | 1.74 | 1.69 | 1.67 | 1.68 | 1.87 | |
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Consumer Discretionary | 1.17 | 1.39 | 1.69 | 1.90 | 1.87 | |
Based on: 10-K (reporting date: 2025-12-31), 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).
1 2025 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Equity attributable to Ford Motor Company
= 165,738 ÷ 35,952 = 4.61
2 Click competitor name to see calculations.
The debt to equity ratio, including operating lease liability, demonstrates a consistent upward trend over the five-year period. Total debt has increased steadily, while equity attributable to Ford Motor Company has fluctuated before experiencing a significant decline in the most recent year.
- Total Debt
- Total debt, inclusive of operating lease liabilities, increased from US$139,485 million in 2021 to US$165,738 million in 2025. The growth was relatively consistent year-over-year, with increases ranging from approximately US$1,000 million to US$9,665 million annually. This indicates a continued reliance on debt financing.
- Equity Attributable to Ford Motor Company
- Equity attributable to Ford Motor Company experienced a decrease from US$48,519 million in 2021 to US$42,773 million in 2023, followed by a slight increase to US$44,835 million in 2024. However, a substantial decrease to US$35,952 million was observed in 2025. This decline in equity, particularly in the final year, contributes significantly to the increasing debt to equity ratio.
- Debt to Equity Ratio
- The debt to equity ratio rose from 2.87 in 2021 to 4.61 in 2025. The ratio increased from 3.25 in 2022 to 3.53 in 2023 and continued to 3.59 in 2024. The most significant increase occurred between 2024 and 2025, moving from 3.59 to 4.61. This escalating ratio suggests a growing proportion of debt financing relative to equity, potentially indicating increased financial risk.
The combined effect of rising debt and declining equity has resulted in a considerably higher debt to equity ratio by the end of the period. This trend warrants further investigation into the underlying causes of both the increased debt levels and the reduction in equity.
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Debt to Capital
Ford Motor Co., debt to capital calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Debt payable within one year | 57,302) | 54,949) | 49,669) | 50,164) | 49,692) | |
| Long-term debt payable after one year | 106,034) | 103,573) | 99,562) | 88,805) | 88,400) | |
| Total debt | 163,336) | 158,522) | 149,231) | 138,969) | 138,092) | |
| Equity attributable to Ford Motor Company | 35,952) | 44,835) | 42,773) | 43,242) | 48,519) | |
| Total capital | 199,288) | 203,357) | 192,004) | 182,211) | 186,611) | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.82 | 0.78 | 0.78 | 0.76 | 0.74 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| General Motors Co. | 0.68 | 0.67 | 0.65 | 0.63 | 0.65 | |
| Tesla Inc. | 0.09 | 0.10 | 0.08 | 0.06 | 0.18 | |
| Debt to Capital, Sector | ||||||
| Automobiles & Components | 0.63 | 0.62 | 0.62 | 0.62 | 0.65 | |
| Debt to Capital, Industry | ||||||
| Consumer Discretionary | 0.48 | 0.52 | 0.57 | 0.60 | 0.60 | |
Based on: 10-K (reporting date: 2025-12-31), 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).
1 2025 Calculation
Debt to capital = Total debt ÷ Total capital
= 163,336 ÷ 199,288 = 0.82
2 Click competitor name to see calculations.
The debt to capital ratio exhibits an increasing trend over the five-year period. Total debt consistently increased year-over-year, while total capital experienced fluctuations. This combination resulted in a progressively higher proportion of debt financing relative to total capital.
- Debt to Capital Ratio Trend
- The debt to capital ratio began at 0.74 in 2021 and rose to 0.82 in 2025. This represents a 10.8% increase over the period. The most significant increase occurred between 2024 and 2025, moving from 0.78 to 0.82.
- Total Debt
- Total debt increased from US$138,092 million in 2021 to US$163,336 million in 2025, demonstrating consistent growth throughout the period. The largest year-over-year increase in total debt was observed between 2023 and 2024, with an increase of US$9,291 million.
- Total Capital
- Total capital decreased from US$186,611 million in 2021 to US$182,211 million in 2022, then increased to US$192,004 million in 2023 and US$203,357 million in 2024. However, it decreased again in 2025 to US$199,288 million. This indicates a degree of volatility in the capital structure over the observed timeframe.
The observed trend suggests an increasing reliance on debt financing. While total capital did increase overall, the growth in debt outpaced it, leading to a higher debt to capital ratio. This could indicate increased financial leverage, potentially impacting future financial flexibility and increasing financial risk.
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Debt to Capital (including Operating Lease Liability)
Ford Motor Co., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Debt payable within one year | 57,302) | 54,949) | 49,669) | 50,164) | 49,692) | |
| Long-term debt payable after one year | 106,034) | 103,573) | 99,562) | 88,805) | 88,400) | |
| Total debt | 163,336) | 158,522) | 149,231) | 138,969) | 138,092) | |
| Current operating lease liabilities | 567) | 558) | 481) | 404) | 345) | |
| Non-current operating lease liabilities | 1,835) | 1,782) | 1,395) | 1,101) | 1,048) | |
| Total debt (including operating lease liability) | 165,738) | 160,862) | 151,107) | 140,474) | 139,485) | |
| Equity attributable to Ford Motor Company | 35,952) | 44,835) | 42,773) | 43,242) | 48,519) | |
| Total capital (including operating lease liability) | 201,690) | 205,697) | 193,880) | 183,716) | 188,004) | |
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | 0.82 | 0.78 | 0.78 | 0.76 | 0.74 | |
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| General Motors Co. | 0.68 | 0.67 | 0.66 | 0.63 | 0.65 | |
| Tesla Inc. | 0.15 | 0.16 | 0.13 | 0.11 | 0.23 | |
| Debt to Capital (including Operating Lease Liability), Sector | ||||||
| Automobiles & Components | 0.64 | 0.63 | 0.63 | 0.63 | 0.65 | |
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Consumer Discretionary | 0.54 | 0.58 | 0.63 | 0.65 | 0.65 | |
Based on: 10-K (reporting date: 2025-12-31), 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).
1 2025 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 165,738 ÷ 201,690 = 0.82
2 Click competitor name to see calculations.
The Debt to Capital ratio, inclusive of operating lease liabilities, exhibits an increasing trend over the observed five-year period. Total debt, incorporating operating lease liabilities, consistently rose from US$139,485 million in 2021 to US$165,738 million in 2025. Simultaneously, Total Capital, also including operating lease liabilities, experienced fluctuations but generally increased from US$188,004 million in 2021 to US$201,690 million in 2025.
- Debt to Capital Ratio Trend
- The ratio began at 0.74 in 2021 and increased to 0.82 in 2025. This indicates a growing reliance on debt financing relative to the company’s capital structure. The increase was not linear, with a slight deceleration in the rate of increase between 2022 and 2023, followed by stabilization between 2023 and 2024, before resuming an upward trajectory in 2025.
The consistent rise in total debt, coupled with the fluctuations in total capital, suggests a potential shift in the company’s financing strategy or increased investment in operations requiring debt funding. While capital levels did increase overall, the rate of debt accumulation outpaced the growth in capital, resulting in the observed increase in the Debt to Capital ratio. The ratio’s movement from 0.74 to 0.82 signifies a 10.8% increase in leverage over the period.
- Total Debt (including operating lease liability)
- Total debt increased each year, with the largest absolute increase occurring between 2023 and 2024 (US$9,755 million). The increase from 2024 to 2025 was comparatively smaller (US$4,876 million), but still contributed to the overall upward trend.
- Total Capital (including operating lease liability)
- Total capital decreased from 2021 to 2022, before increasing in subsequent years. The largest increase in total capital occurred between 2022 and 2023 (US$10,164 million). However, capital decreased slightly between 2024 and 2025, indicating potential factors impacting equity or retained earnings.
The observed trend warrants further investigation into the underlying drivers of debt accumulation and capital structure changes. Understanding the specific investments funded by debt and the factors influencing capital levels is crucial for a comprehensive assessment of the company’s financial health.
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Debt to Assets
Ford Motor Co., debt to assets calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Debt payable within one year | 57,302) | 54,949) | 49,669) | 50,164) | 49,692) | |
| Long-term debt payable after one year | 106,034) | 103,573) | 99,562) | 88,805) | 88,400) | |
| Total debt | 163,336) | 158,522) | 149,231) | 138,969) | 138,092) | |
| Total assets | 289,160) | 285,196) | 273,310) | 255,884) | 257,035) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.56 | 0.56 | 0.55 | 0.54 | 0.54 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| General Motors Co. | 0.46 | 0.46 | 0.45 | 0.43 | 0.45 | |
| Tesla Inc. | 0.06 | 0.07 | 0.05 | 0.04 | 0.11 | |
| Debt to Assets, Sector | ||||||
| Automobiles & Components | 0.43 | 0.43 | 0.42 | 0.43 | 0.45 | |
| Debt to Assets, Industry | ||||||
| Consumer Discretionary | 0.29 | 0.32 | 0.34 | 0.35 | 0.36 | |
Based on: 10-K (reporting date: 2025-12-31), 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).
1 2025 Calculation
Debt to assets = Total debt ÷ Total assets
= 163,336 ÷ 289,160 = 0.56
2 Click competitor name to see calculations.
The Debt-to-Assets ratio exhibits a consistent upward trend over the five-year period examined. This indicates a gradual increase in the proportion of assets financed by debt. While the changes are incremental, the pattern suggests a growing reliance on debt financing.
- Debt-to-Assets Ratio Trend
- The ratio remained stable at 0.54 for both 2021 and 2022. A slight increase to 0.55 was observed in 2023, followed by further increases to 0.56 in both 2024 and 2025. This consistent, albeit modest, rise suggests a deliberate or unavoidable shift in the company’s capital structure.
Total debt increased steadily throughout the period, moving from US$138,092 million in 2021 to US$163,336 million in 2025. Total assets also increased, but at a slower rate, contributing to the observed increase in the Debt-to-Assets ratio. The increase in debt appears to outpace the growth in assets.
- Debt and Asset Values
- Total debt increased by approximately 17.8% over the five years, while total assets increased by approximately 12.5%. This differential growth rate is a primary driver of the increasing Debt-to-Assets ratio.
The consistent increase in the Debt-to-Assets ratio warrants continued monitoring. While a moderate level of debt can be beneficial, a sustained upward trend could indicate increasing financial risk and potentially reduced financial flexibility.
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Debt to Assets (including Operating Lease Liability)
Ford Motor Co., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Debt payable within one year | 57,302) | 54,949) | 49,669) | 50,164) | 49,692) | |
| Long-term debt payable after one year | 106,034) | 103,573) | 99,562) | 88,805) | 88,400) | |
| Total debt | 163,336) | 158,522) | 149,231) | 138,969) | 138,092) | |
| Current operating lease liabilities | 567) | 558) | 481) | 404) | 345) | |
| Non-current operating lease liabilities | 1,835) | 1,782) | 1,395) | 1,101) | 1,048) | |
| Total debt (including operating lease liability) | 165,738) | 160,862) | 151,107) | 140,474) | 139,485) | |
| Total assets | 289,160) | 285,196) | 273,310) | 255,884) | 257,035) | |
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | 0.57 | 0.56 | 0.55 | 0.55 | 0.54 | |
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| General Motors Co. | 0.47 | 0.47 | 0.45 | 0.44 | 0.45 | |
| Tesla Inc. | 0.11 | 0.11 | 0.09 | 0.07 | 0.14 | |
| Debt to Assets (including Operating Lease Liability), Sector | ||||||
| Automobiles & Components | 0.44 | 0.44 | 0.43 | 0.44 | 0.46 | |
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Consumer Discretionary | 0.38 | 0.41 | 0.43 | 0.44 | 0.44 | |
Based on: 10-K (reporting date: 2025-12-31), 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).
1 2025 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 165,738 ÷ 289,160 = 0.57
2 Click competitor name to see calculations.
The Debt to Assets ratio, including operating lease liability, demonstrates a consistent upward trend over the five-year period examined. Total debt, inclusive of operating leases, has increased annually, while total assets have exhibited more moderate fluctuations. This combination has resulted in a gradual increase in the proportion of assets financed by debt.
- Debt to Assets Ratio Trend
- The ratio began at 0.54 in 2021 and increased to 0.57 by 2025. This represents a 5.56% increase over the period. The consistent, albeit incremental, rise suggests a growing reliance on debt financing relative to the company’s asset base.
Total debt, including operating lease liability, increased from US$139,485 million in 2021 to US$165,738 million in 2025. The largest single-year increase occurred between 2022 and 2023, with an increase of US$10,633 million. While debt increased each year, the rate of increase varied.
- Total Debt Analysis
- The consistent growth in total debt suggests ongoing investment in operations or acquisitions, potentially funded through borrowing. The increase in operating lease liability contributes to this trend, reflecting a potential shift towards leased assets rather than owned assets.
Total assets experienced a slight decrease between 2021 and 2022, falling from US$257,035 million to US$255,884 million. However, assets then increased over the subsequent three years, reaching US$289,160 million in 2025. Despite this overall increase in assets, the growth rate has not kept pace with the growth in total debt.
- Total Assets Analysis
- The asset growth, while positive overall, has been insufficient to offset the increase in debt, contributing to the rising Debt to Assets ratio. This suggests that the company is leveraging debt to a greater extent to expand its asset base.
The observed trend warrants continued monitoring to assess the long-term implications for the company’s financial flexibility and risk profile. Further investigation into the specific uses of the borrowed funds and the nature of the asset growth would provide a more comprehensive understanding of the situation.
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Financial Leverage
Ford Motor Co., financial leverage calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Total assets | 289,160) | 285,196) | 273,310) | 255,884) | 257,035) | |
| Equity attributable to Ford Motor Company | 35,952) | 44,835) | 42,773) | 43,242) | 48,519) | |
| Solvency Ratio | ||||||
| Financial leverage1 | 8.04 | 6.36 | 6.39 | 5.92 | 5.30 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| General Motors Co. | 4.60 | 4.44 | 4.25 | 3.89 | 4.10 | |
| Tesla Inc. | 1.68 | 1.67 | 1.70 | 1.84 | 2.06 | |
| Financial Leverage, Sector | ||||||
| Automobiles & Components | 3.95 | 3.80 | 3.85 | 3.87 | 4.07 | |
| Financial Leverage, Industry | ||||||
| Consumer Discretionary | 3.11 | 3.44 | 3.95 | 4.32 | 4.22 | |
Based on: 10-K (reporting date: 2025-12-31), 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).
1 2025 Calculation
Financial leverage = Total assets ÷ Equity attributable to Ford Motor Company
= 289,160 ÷ 35,952 = 8.04
2 Click competitor name to see calculations.
An examination of the provided financial information reveals a consistent increase in financial leverage over the observed period, with a notable acceleration in the most recent year. Total assets exhibited a generally upward trajectory, while equity attributable to Ford Motor Company demonstrated more volatility.
- Financial Leverage
- The financial leverage ratio increased from 5.30 in 2021 to 5.92 in 2022, indicating a growing reliance on debt financing relative to equity. This trend continued through 2023, reaching 6.39. A slight decrease to 6.36 was observed in 2024, but the ratio experienced a substantial increase to 8.04 in 2025. This represents the most significant year-over-year change in the observed period and suggests a considerably higher proportion of debt financing compared to equity by the end of 2025.
The trend in equity attributable to Ford Motor Company provides context for the increasing leverage. While relatively stable between 2021 and 2024, equity decreased significantly in 2025. This decline in equity, coupled with the continued growth in total assets, likely contributed to the pronounced increase in the financial leverage ratio during that year.
The consistent growth in total assets suggests expansion of the company’s operations or investments. However, the increasing financial leverage, particularly the sharp rise in 2025, warrants further investigation to assess the associated risks and sustainability of the capital structure. The decreasing equity in the final year also requires attention.
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Interest Coverage
Ford Motor Co., interest coverage calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income (loss) attributable to Ford Motor Company | (8,182) | 5,879) | 4,347) | (1,981) | 17,937) | |
| Add: Net income attributable to noncontrolling interest | 20) | 15) | (18) | (171) | (27) | |
| Add: Income tax expense | (3,668) | 1,339) | (362) | (864) | (130) | |
| Add: Interest expense on Company debt excluding Ford Credit | 1,254) | 1,115) | 1,302) | 1,259) | 1,803) | |
| Earnings before interest and tax (EBIT) | (10,576) | 8,348) | 5,269) | (1,757) | 19,583) | |
| Solvency Ratio | ||||||
| Interest coverage1 | -8.43 | 7.49 | 4.05 | -1.40 | 10.86 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| General Motors Co. | 5.29 | 11.07 | 12.42 | 12.75 | 14.39 | |
| Tesla Inc. | 16.62 | 26.69 | 64.93 | 72.83 | 18.10 | |
| Interest Coverage, Sector | ||||||
| Automobiles & Components | -0.48 | 11.71 | 11.28 | 10.15 | 12.79 | |
| Interest Coverage, Industry | ||||||
| Consumer Discretionary | 13.89 | 15.00 | 12.23 | 9.30 | 13.23 | |
Based on: 10-K (reporting date: 2025-12-31), 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).
1 2025 Calculation
Interest coverage = EBIT ÷ Interest expense
= -10,576 ÷ 1,254 = -8.43
2 Click competitor name to see calculations.
The interest coverage ratio exhibits significant fluctuations over the observed period. Initial values indicate a strong ability to meet interest obligations, followed by a period of concern, recovery, and then substantial deterioration.
- Earnings Before Interest and Tax (EBIT)
- EBIT demonstrates considerable volatility. A substantial value is recorded in 2021, followed by a significant loss in 2022. A recovery is seen in 2023 and further improvement in 2024, but this is reversed with a substantial loss reported in 2025. These fluctuations directly impact the interest coverage ratio.
- Interest Expense
- Interest expense remains relatively stable throughout the period, ranging between US$1.115 billion and US$1.803 billion. While there is some variation, the expense does not exhibit the same degree of fluctuation as EBIT. This relative stability highlights that changes in the interest coverage ratio are primarily driven by changes in earnings.
- Interest Coverage Ratio
- The interest coverage ratio begins at a high of 10.86 in 2021, indicating a robust capacity to cover interest payments. However, it declines sharply to -1.40 in 2022, signifying an inability to cover interest expense with earnings. A partial recovery is observed in 2023, with a ratio of 4.05, and further improvement to 7.49 in 2024. The ratio then experiences a dramatic decline in 2025, falling to -8.43, indicating a substantial inability to meet interest obligations from current earnings. The negative values in 2022 and 2025 are particularly concerning, suggesting periods where earnings were insufficient to cover even the interest expense.
The trend suggests a cyclical pattern, or potentially, a sensitivity to external factors impacting profitability. The significant decline in the interest coverage ratio in 2025 warrants further investigation into the underlying causes of the substantial EBIT loss.
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Fixed Charge Coverage
Ford Motor Co., fixed charge coverage calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income (loss) attributable to Ford Motor Company | (8,182) | 5,879) | 4,347) | (1,981) | 17,937) | |
| Add: Net income attributable to noncontrolling interest | 20) | 15) | (18) | (171) | (27) | |
| Add: Income tax expense | (3,668) | 1,339) | (362) | (864) | (130) | |
| Add: Interest expense on Company debt excluding Ford Credit | 1,254) | 1,115) | 1,302) | 1,259) | 1,803) | |
| Earnings before interest and tax (EBIT) | (10,576) | 8,348) | 5,269) | (1,757) | 19,583) | |
| Add: Operating lease expense | 744) | 650) | 580) | 463) | 444) | |
| Earnings before fixed charges and tax | (9,832) | 8,998) | 5,849) | (1,294) | 20,027) | |
| Interest expense on Company debt excluding Ford Credit | 1,254) | 1,115) | 1,302) | 1,259) | 1,803) | |
| Operating lease expense | 744) | 650) | 580) | 463) | 444) | |
| Fixed charges | 1,998) | 1,765) | 1,882) | 1,722) | 2,247) | |
| Solvency Ratio | ||||||
| Fixed charge coverage1 | -4.92 | 5.10 | 3.11 | -0.75 | 8.91 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| General Motors Co. | 8.55 | — | 8.39 | 4.97 | 9.47 | |
| Tesla Inc. | 3.51 | 5.86 | 8.62 | 14.87 | 7.36 | |
| Fixed Charge Coverage, Sector | ||||||
| Automobiles & Components | 0.39 | 8.87 | 6.28 | 4.96 | 8.76 | |
| Fixed Charge Coverage, Industry | ||||||
| Consumer Discretionary | 5.16 | 5.95 | 4.95 | 3.65 | 5.60 | |
Based on: 10-K (reporting date: 2025-12-31), 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).
1 2025 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= -9,832 ÷ 1,998 = -4.92
2 Click competitor name to see calculations.
The company’s fixed charge coverage exhibited significant volatility between 2021 and 2025. Earnings before fixed charges and taxes, and consequently the fixed charge coverage ratio, fluctuated considerably over the five-year period.
- Fixed Charge Coverage Trend
- In 2021, the fixed charge coverage ratio was 8.91, indicating a strong ability to meet fixed obligations. However, this declined sharply in 2022 to -0.75, signifying an inability to cover fixed charges with earnings. A recovery was observed in 2023, with the ratio increasing to 3.11, suggesting improved, though still moderate, coverage. Further improvement occurred in 2024, reaching 5.10, demonstrating a more comfortable margin for covering fixed charges. This positive trend reversed in 2025, with the ratio falling to -4.92, indicating a substantial deterioration in the ability to meet fixed obligations.
- Earnings Before Fixed Charges and Tax
- Earnings before fixed charges and tax followed a similar pattern of volatility. The company reported $20,027 million in earnings in 2021. This decreased dramatically to a loss of $1,294 million in 2022. Earnings recovered to $5,849 million in 2023 and further increased to $8,998 million in 2024. However, a significant loss of $9,832 million was recorded in 2025, mirroring the decline in fixed charge coverage.
- Fixed Charges
- Fixed charges remained relatively stable throughout the period, ranging from $1,722 million to $2,247 million. A slight decrease was observed from 2021 to 2022, followed by a modest increase in 2023 and a further decrease in 2024. Fixed charges increased again in 2025, but the substantial decline in earnings before fixed charges and tax was the primary driver of the negative fixed charge coverage ratio in both 2022 and 2025.
The substantial fluctuations in earnings before fixed charges and tax are the dominant factor influencing the fixed charge coverage ratio. While fixed charges remained relatively consistent, the company’s ability to generate earnings to cover these obligations varied significantly year to year.
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