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: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Ford Motor Co. debt to equity ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Ford Motor Co. debt to equity ratio (including operating lease liability) deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Ford Motor Co. debt to capital ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Ford Motor Co. debt to capital ratio (including operating lease liability) deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Ford Motor Co. debt to assets ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Ford Motor Co. debt to assets ratio (including operating lease liability) deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Ford Motor Co. financial leverage ratio increased from 2021 to 2022 and from 2022 to 2023. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Ford Motor Co. interest coverage ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Ford Motor Co. fixed charge coverage ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
Debt to Equity
Ford Motor Co., debt to equity calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Debt payable within one year | 49,669) | 50,164) | 49,692) | 51,343) | 53,946) | |
| Long-term debt payable after one year | 99,562) | 88,805) | 88,400) | 110,341) | 101,361) | |
| Total debt | 149,231) | 138,969) | 138,092) | 161,684) | 155,307) | |
| Equity attributable to Ford Motor Company | 42,773) | 43,242) | 48,519) | 30,690) | 33,185) | |
| Solvency Ratio | ||||||
| Debt to equity1 | 3.49 | 3.21 | 2.85 | 5.27 | 4.68 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| General Motors Co. | 1.89 | 1.69 | 1.83 | 2.44 | 2.47 | |
| Tesla Inc. | 0.08 | 0.07 | 0.23 | 0.53 | 2.03 | |
| Debt to Equity, Sector | ||||||
| Automobiles & Components | 1.63 | 1.65 | 1.84 | 2.89 | 3.33 | |
| Debt to Equity, Industry | ||||||
| Consumer Discretionary | 1.37 | 1.54 | 1.52 | 2.37 | 2.78 | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Debt to equity = Total debt ÷ Equity attributable to Ford Motor Company
= 149,231 ÷ 42,773 = 3.49
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Ford Motor Co. debt to equity ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Debt to Equity (including Operating Lease Liability)
Ford Motor Co., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Debt payable within one year | 49,669) | 50,164) | 49,692) | 51,343) | 53,946) | |
| Long-term debt payable after one year | 99,562) | 88,805) | 88,400) | 110,341) | 101,361) | |
| Total debt | 149,231) | 138,969) | 138,092) | 161,684) | 155,307) | |
| Current operating lease liabilities | 481) | 404) | 345) | 323) | 367) | |
| Non-current operating lease liabilities | 1,395) | 1,101) | 1,048) | 991) | 1,047) | |
| Total debt (including operating lease liability) | 151,107) | 140,474) | 139,485) | 162,998) | 156,721) | |
| Equity attributable to Ford Motor Company | 42,773) | 43,242) | 48,519) | 30,690) | 33,185) | |
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | 3.53 | 3.25 | 2.87 | 5.31 | 4.72 | |
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| General Motors Co. | 1.91 | 1.71 | 1.85 | 2.47 | 2.50 | |
| Tesla Inc. | 0.15 | 0.13 | 0.29 | 0.60 | 2.21 | |
| Debt to Equity (including Operating Lease Liability), Sector | ||||||
| Automobiles & Components | 1.67 | 1.68 | 1.87 | 2.93 | 3.38 | |
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Consumer Discretionary | 1.72 | 1.94 | 1.90 | 2.84 | 3.08 | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Equity attributable to Ford Motor Company
= 151,107 ÷ 42,773 = 3.53
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Ford Motor Co. debt to equity ratio (including operating lease liability) deteriorated from 2021 to 2022 and from 2022 to 2023. |
Debt to Capital
Ford Motor Co., debt to capital calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Debt payable within one year | 49,669) | 50,164) | 49,692) | 51,343) | 53,946) | |
| Long-term debt payable after one year | 99,562) | 88,805) | 88,400) | 110,341) | 101,361) | |
| Total debt | 149,231) | 138,969) | 138,092) | 161,684) | 155,307) | |
| Equity attributable to Ford Motor Company | 42,773) | 43,242) | 48,519) | 30,690) | 33,185) | |
| Total capital | 192,004) | 182,211) | 186,611) | 192,374) | 188,492) | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.78 | 0.76 | 0.74 | 0.84 | 0.82 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| General Motors Co. | 0.65 | 0.63 | 0.65 | 0.71 | 0.71 | |
| Tesla Inc. | 0.08 | 0.06 | 0.18 | 0.34 | 0.67 | |
| Debt to Capital, Sector | ||||||
| Automobiles & Components | 0.62 | 0.62 | 0.65 | 0.74 | 0.77 | |
| Debt to Capital, Industry | ||||||
| Consumer Discretionary | 0.58 | 0.61 | 0.60 | 0.70 | 0.74 | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Debt to capital = Total debt ÷ Total capital
= 149,231 ÷ 192,004 = 0.78
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Ford Motor Co. debt to capital ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Debt to Capital (including Operating Lease Liability)
Ford Motor Co., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Debt payable within one year | 49,669) | 50,164) | 49,692) | 51,343) | 53,946) | |
| Long-term debt payable after one year | 99,562) | 88,805) | 88,400) | 110,341) | 101,361) | |
| Total debt | 149,231) | 138,969) | 138,092) | 161,684) | 155,307) | |
| Current operating lease liabilities | 481) | 404) | 345) | 323) | 367) | |
| Non-current operating lease liabilities | 1,395) | 1,101) | 1,048) | 991) | 1,047) | |
| Total debt (including operating lease liability) | 151,107) | 140,474) | 139,485) | 162,998) | 156,721) | |
| Equity attributable to Ford Motor Company | 42,773) | 43,242) | 48,519) | 30,690) | 33,185) | |
| Total capital (including operating lease liability) | 193,880) | 183,716) | 188,004) | 193,688) | 189,906) | |
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | 0.78 | 0.76 | 0.74 | 0.84 | 0.83 | |
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| General Motors Co. | 0.66 | 0.63 | 0.65 | 0.71 | 0.71 | |
| Tesla Inc. | 0.13 | 0.11 | 0.23 | 0.37 | 0.69 | |
| Debt to Capital (including Operating Lease Liability), Sector | ||||||
| Automobiles & Components | 0.63 | 0.63 | 0.65 | 0.75 | 0.77 | |
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Consumer Discretionary | 0.63 | 0.66 | 0.65 | 0.74 | 0.76 | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 151,107 ÷ 193,880 = 0.78
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Ford Motor Co. debt to capital ratio (including operating lease liability) deteriorated from 2021 to 2022 and from 2022 to 2023. |
Debt to Assets
Ford Motor Co., debt to assets calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Debt payable within one year | 49,669) | 50,164) | 49,692) | 51,343) | 53,946) | |
| Long-term debt payable after one year | 99,562) | 88,805) | 88,400) | 110,341) | 101,361) | |
| Total debt | 149,231) | 138,969) | 138,092) | 161,684) | 155,307) | |
| Total assets | 273,310) | 255,884) | 257,035) | 267,261) | 258,537) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.55 | 0.54 | 0.54 | 0.60 | 0.60 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| General Motors Co. | 0.45 | 0.43 | 0.45 | 0.47 | 0.45 | |
| Tesla Inc. | 0.05 | 0.04 | 0.11 | 0.22 | 0.39 | |
| Debt to Assets, Sector | ||||||
| Automobiles & Components | 0.42 | 0.43 | 0.45 | 0.51 | 0.52 | |
| Debt to Assets, Industry | ||||||
| Consumer Discretionary | 0.34 | 0.35 | 0.36 | 0.41 | 0.45 | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Debt to assets = Total debt ÷ Total assets
= 149,231 ÷ 273,310 = 0.55
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Ford Motor Co. debt to assets ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Debt to Assets (including Operating Lease Liability)
Ford Motor Co., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Debt payable within one year | 49,669) | 50,164) | 49,692) | 51,343) | 53,946) | |
| Long-term debt payable after one year | 99,562) | 88,805) | 88,400) | 110,341) | 101,361) | |
| Total debt | 149,231) | 138,969) | 138,092) | 161,684) | 155,307) | |
| Current operating lease liabilities | 481) | 404) | 345) | 323) | 367) | |
| Non-current operating lease liabilities | 1,395) | 1,101) | 1,048) | 991) | 1,047) | |
| Total debt (including operating lease liability) | 151,107) | 140,474) | 139,485) | 162,998) | 156,721) | |
| Total assets | 273,310) | 255,884) | 257,035) | 267,261) | 258,537) | |
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | 0.55 | 0.55 | 0.54 | 0.61 | 0.61 | |
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| General Motors Co. | 0.45 | 0.44 | 0.45 | 0.47 | 0.46 | |
| Tesla Inc. | 0.09 | 0.07 | 0.14 | 0.25 | 0.43 | |
| Debt to Assets (including Operating Lease Liability), Sector | ||||||
| Automobiles & Components | 0.43 | 0.44 | 0.46 | 0.52 | 0.53 | |
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Consumer Discretionary | 0.43 | 0.44 | 0.45 | 0.50 | 0.50 | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 151,107 ÷ 273,310 = 0.55
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Ford Motor Co. debt to assets ratio (including operating lease liability) deteriorated from 2021 to 2022 and from 2022 to 2023. |
Financial Leverage
Ford Motor Co., financial leverage calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Total assets | 273,310) | 255,884) | 257,035) | 267,261) | 258,537) | |
| Equity attributable to Ford Motor Company | 42,773) | 43,242) | 48,519) | 30,690) | 33,185) | |
| Solvency Ratio | ||||||
| Financial leverage1 | 6.39 | 5.92 | 5.30 | 8.71 | 7.79 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| General Motors Co. | 4.25 | 3.89 | 4.10 | 5.22 | 5.46 | |
| Tesla Inc. | 1.70 | 1.84 | 2.06 | 2.35 | 5.18 | |
| Financial Leverage, Sector | ||||||
| Automobiles & Components | 3.85 | 3.87 | 4.07 | 5.66 | 6.38 | |
| Financial Leverage, Industry | ||||||
| Consumer Discretionary | 4.00 | 4.38 | 4.26 | 5.72 | 6.22 | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Financial leverage = Total assets ÷ Equity attributable to Ford Motor Company
= 273,310 ÷ 42,773 = 6.39
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Ford Motor Co. financial leverage ratio increased from 2021 to 2022 and from 2022 to 2023. |
Interest Coverage
Ford Motor Co., interest coverage calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income (loss) attributable to Ford Motor Company | 4,347) | (1,981) | 17,937) | (1,279) | 47) | |
| Add: Net income attributable to noncontrolling interest | (18) | (171) | (27) | 3) | 37) | |
| Add: Income tax expense | (362) | (864) | (130) | 160) | (724) | |
| Add: Interest expense on Company debt excluding Ford Credit | 1,302) | 1,259) | 1,803) | 1,649) | 1,020) | |
| Earnings before interest and tax (EBIT) | 5,269) | (1,757) | 19,583) | 533) | 380) | |
| Solvency Ratio | ||||||
| Interest coverage1 | 4.05 | -1.40 | 10.86 | 0.32 | 0.37 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| General Motors Co. | 12.42 | 12.75 | 14.39 | 8.37 | 10.51 | |
| Tesla Inc. | 64.93 | 72.83 | 18.10 | 2.54 | 0.03 | |
| Interest Coverage, Sector | ||||||
| Automobiles & Components | 11.28 | 10.15 | 12.79 | 3.33 | 3.47 | |
| Interest Coverage, Industry | ||||||
| Consumer Discretionary | 12.27 | 9.45 | 13.29 | 7.81 | 9.65 | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Interest coverage = EBIT ÷ Interest expense
= 5,269 ÷ 1,302 = 4.05
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Ford Motor Co. interest coverage ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
Fixed Charge Coverage
Ford Motor Co., fixed charge coverage calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income (loss) attributable to Ford Motor Company | 4,347) | (1,981) | 17,937) | (1,279) | 47) | |
| Add: Net income attributable to noncontrolling interest | (18) | (171) | (27) | 3) | 37) | |
| Add: Income tax expense | (362) | (864) | (130) | 160) | (724) | |
| Add: Interest expense on Company debt excluding Ford Credit | 1,302) | 1,259) | 1,803) | 1,649) | 1,020) | |
| Earnings before interest and tax (EBIT) | 5,269) | (1,757) | 19,583) | 533) | 380) | |
| Add: Operating lease expense | 580) | 463) | 444) | 463) | 467) | |
| Earnings before fixed charges and tax | 5,849) | (1,294) | 20,027) | 996) | 847) | |
| Interest expense on Company debt excluding Ford Credit | 1,302) | 1,259) | 1,803) | 1,649) | 1,020) | |
| Operating lease expense | 580) | 463) | 444) | 463) | 467) | |
| Fixed charges | 1,882) | 1,722) | 2,247) | 2,112) | 1,487) | |
| Solvency Ratio | ||||||
| Fixed charge coverage1 | 3.11 | -0.75 | 8.91 | 0.47 | 0.57 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| General Motors Co. | 8.39 | 4.97 | 9.47 | 5.79 | 6.46 | |
| Tesla Inc. | 8.62 | 14.87 | 7.36 | 1.96 | 0.40 | |
| Fixed Charge Coverage, Sector | ||||||
| Automobiles & Components | 6.28 | 4.96 | 8.76 | 2.60 | 2.51 | |
| Fixed Charge Coverage, Industry | ||||||
| Consumer Discretionary | 4.98 | 3.70 | 5.63 | 3.72 | 4.20 | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 5,849 ÷ 1,882 = 3.11
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Ford Motor Co. fixed charge coverage ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |