Analysis of Solvency Ratios
Quarterly Data
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 (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 solvency position, as indicated by the presented ratios, exhibits a generally stable, though incrementally increasing, level of financial leverage over the observed period, with a notable shift in the most recent quarter. Throughout much of the period from March 2022 to December 2023, the ratios demonstrate relative consistency, followed by a more pronounced change in early 2024 and a significant alteration by December 2025.
- Debt to Equity
- The Debt to Equity ratio generally increased from 3.01 in March 2022 to 3.54 in December 2024, indicating a growing reliance on debt financing relative to equity. A slight decrease is observed in the first half of 2025, but the ratio experiences a substantial increase to 4.54 by December 2025, suggesting a significant increase in debt relative to equity during that quarter.
- Debt to Capital
- The Debt to Capital ratio remained remarkably stable between 0.74 and 0.78 for the majority of the period, indicating a consistent proportion of debt within the company’s capital structure. The ratio increased to 0.82 in December 2025, mirroring the trend observed in the Debt to Equity ratio and suggesting a greater reliance on debt financing.
- Debt to Assets
- The Debt to Assets ratio showed a modest increase from 0.54 in March 2022 to 0.56 in December 2024, indicating a gradual increase in the proportion of assets financed by debt. The ratio remained at 0.54 for several quarters before increasing to 0.56 in December 2025, consistent with the overall trend of increasing leverage.
- Financial Leverage
- Financial leverage, as measured by the ratio, generally increased from 5.62 in March 2022 to 6.36 in December 2024, demonstrating a growing use of debt to amplify returns. A substantial increase to 8.04 is observed in December 2025, indicating a significantly amplified financial risk profile.
- Interest Coverage
- The Interest Coverage ratio exhibited more volatility. It decreased from 7.10 in March 2022 to a negative value of -1.40 in December 2022, indicating an inability to cover interest expenses with earnings during that period. The ratio recovered to positive values, peaking at 7.49 in December 2024, before declining sharply to -8.43 in December 2025. This final decline suggests a significant deterioration in the company’s ability to meet its interest obligations, potentially linked to the increased debt levels observed in other ratios.
In summary, the company maintained a relatively stable, but increasing, debt position for much of the analyzed period. However, the final quarter shows a marked increase in debt-related ratios and a substantial decline in the ability to cover interest expenses, signaling a potential increase in financial risk.
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Debt Ratios
Coverage Ratios
Debt to Equity
Ford Motor Co., debt to equity 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) | |||||||||||||||||||||
| Debt payable within one year | 57,302) | 57,628) | 56,872) | 54,440) | 54,949) | 53,564) | 50,565) | 49,790) | 49,669) | 48,638) | 49,341) | 48,050) | 50,164) | 44,050) | 43,819) | 48,286) | |||||
| Long-term debt payable after one year | 106,034) | 104,312) | 100,855) | 100,830) | 103,573) | 103,694) | 100,336) | 99,625) | 99,562) | 94,024) | 93,895) | 91,242) | 88,805) | 84,279) | 85,008) | 87,315) | |||||
| Total debt | 163,336) | 161,940) | 157,727) | 155,270) | 158,522) | 157,258) | 150,901) | 149,415) | 149,231) | 142,662) | 143,236) | 139,292) | 138,969) | 128,329) | 128,827) | 135,601) | |||||
| Equity attributable to Ford Motor Company | 35,952) | 47,392) | 45,057) | 44,635) | 44,835) | 44,315) | 43,567) | 42,870) | 42,773) | 44,263) | 43,677) | 42,366) | 43,242) | 42,125) | 44,169) | 44,985) | |||||
| Solvency Ratio | |||||||||||||||||||||
| Debt to equity1 | 4.54 | 3.42 | 3.50 | 3.48 | 3.54 | 3.55 | 3.46 | 3.49 | 3.49 | 3.22 | 3.28 | 3.29 | 3.21 | 3.05 | 2.92 | 3.01 | |||||
| Benchmarks | |||||||||||||||||||||
| Debt to Equity, Competitors2 | |||||||||||||||||||||
| General Motors Co. | 2.13 | 2.00 | 2.05 | 2.06 | 2.06 | 1.80 | 1.84 | 1.84 | 1.89 | 1.60 | 1.65 | 1.64 | 1.69 | 1.73 | 1.73 | 1.77 | |||||
| Tesla Inc. | 0.10 | 0.10 | 0.09 | 0.10 | 0.11 | 0.11 | 0.12 | 0.08 | 0.08 | 0.10 | 0.07 | 0.08 | 0.09 | 0.12 | 0.15 | 0.17 | |||||
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
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 for the analyzed period demonstrates a generally increasing trend, punctuated by some fluctuations. Initially, the ratio decreased from 3.01 in March 2022 to 2.92 in June 2022, before rising to 3.05 by September 2022. A more pronounced increase occurred through December 2022, reaching 3.21, and continued into the first half of 2023, peaking at 3.29 in June 2023. The ratio then experienced a slight decline to 3.22 in September 2023, followed by a significant jump to 3.49 in December 2023. This upward trajectory persisted through September 2024, reaching 3.55, before stabilizing around 3.50 at the end of 2024. A substantial increase is observed in the first half of 2025, culminating in a ratio of 4.54 in December 2025.
- Overall Trend
- The overall trend indicates a growing reliance on debt financing relative to equity over the analyzed period. While fluctuations exist, the ratio consistently trends upward, particularly from December 2023 through December 2025. This suggests a potential shift in the company’s capital structure.
- Short-Term Fluctuations (2022-2023)
- Between March 2022 and June 2023, the debt to equity ratio exhibited moderate volatility, oscillating between 2.92 and 3.29. These fluctuations likely reflect routine adjustments in debt levels and equity valuations during normal business operations.
- Significant Increase (December 2023 - December 2025)
- The period from December 2023 to December 2025 is characterized by a more substantial and consistent increase in the debt to equity ratio. The ratio rose from 3.49 to 4.54, indicating a significant increase in debt relative to equity during this timeframe. This could be attributable to increased borrowing for investment, acquisitions, or to offset operational challenges. The sharp increase in December 2025 is particularly noteworthy.
- Equity Component
- While total debt consistently increased, the equity attributable to the company also showed some fluctuation. A notable decrease in equity is observed in December 2025, which contributes significantly to the elevated debt to equity ratio at that time. This decrease in equity could be due to factors such as share repurchases, dividend payouts, or losses impacting retained earnings.
In conclusion, the debt to equity ratio indicates a growing level of financial leverage. The substantial increase observed in the latter part of the analyzed period warrants further investigation to understand the underlying drivers and potential implications for the company’s financial risk profile.
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Debt to Capital
Ford Motor Co., debt to capital 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) | |||||||||||||||||||||
| Debt payable within one year | 57,302) | 57,628) | 56,872) | 54,440) | 54,949) | 53,564) | 50,565) | 49,790) | 49,669) | 48,638) | 49,341) | 48,050) | 50,164) | 44,050) | 43,819) | 48,286) | |||||
| Long-term debt payable after one year | 106,034) | 104,312) | 100,855) | 100,830) | 103,573) | 103,694) | 100,336) | 99,625) | 99,562) | 94,024) | 93,895) | 91,242) | 88,805) | 84,279) | 85,008) | 87,315) | |||||
| Total debt | 163,336) | 161,940) | 157,727) | 155,270) | 158,522) | 157,258) | 150,901) | 149,415) | 149,231) | 142,662) | 143,236) | 139,292) | 138,969) | 128,329) | 128,827) | 135,601) | |||||
| Equity attributable to Ford Motor Company | 35,952) | 47,392) | 45,057) | 44,635) | 44,835) | 44,315) | 43,567) | 42,870) | 42,773) | 44,263) | 43,677) | 42,366) | 43,242) | 42,125) | 44,169) | 44,985) | |||||
| Total capital | 199,288) | 209,332) | 202,784) | 199,905) | 203,357) | 201,573) | 194,468) | 192,285) | 192,004) | 186,925) | 186,913) | 181,658) | 182,211) | 170,454) | 172,996) | 180,586) | |||||
| Solvency Ratio | |||||||||||||||||||||
| Debt to capital1 | 0.82 | 0.77 | 0.78 | 0.78 | 0.78 | 0.78 | 0.78 | 0.78 | 0.78 | 0.76 | 0.77 | 0.77 | 0.76 | 0.75 | 0.74 | 0.75 | |||||
| Benchmarks | |||||||||||||||||||||
| Debt to Capital, Competitors2 | |||||||||||||||||||||
| General Motors Co. | 0.68 | 0.67 | 0.67 | 0.67 | 0.67 | 0.64 | 0.65 | 0.65 | 0.65 | 0.61 | 0.62 | 0.62 | 0.63 | 0.63 | 0.63 | 0.64 | |||||
| Tesla Inc. | 0.09 | 0.09 | 0.09 | 0.09 | 0.10 | 0.10 | 0.10 | 0.08 | 0.08 | 0.09 | 0.06 | 0.07 | 0.09 | 0.10 | 0.13 | 0.15 | |||||
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
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 for the analyzed period demonstrates a generally increasing trend, indicating a growing reliance on debt financing relative to total capital. While fluctuations occur, the overall pattern suggests a shift in the company’s capital structure.
- Overall Trend
- The debt to capital ratio began at 0.75 in March 2022 and generally increased to 0.82 by December 2025. This represents a roughly 9.3% increase over the period. The ratio remained relatively stable between 0.76 and 0.78 for much of 2022 through 2024, before the more pronounced increase in the final quarter of 2025.
- Short-Term Fluctuations (2022-2023)
- From March 2022 to June 2022, a slight decrease in the ratio from 0.75 to 0.74 was observed. This was followed by a return to 0.75 in September 2022. The ratio then increased to 0.76 by December 2022 and remained around 0.77 throughout the first half of 2023. These initial fluctuations were relatively minor.
- Period of Stability (2023-2024)
- The ratio exhibited a period of relative stability between 0.76 and 0.78 from September 2023 through December 2024. This suggests a consistent approach to capital structure management during this timeframe, with debt and capital growing at similar rates.
- Recent Increase (2025)
- A notable increase in the debt to capital ratio occurred in the final quarter of 2025, rising to 0.82. This represents the highest value observed throughout the analyzed period and indicates a significant increase in the proportion of debt financing. This increase warrants further investigation to understand the underlying drivers, such as increased borrowing or a decrease in equity.
The consistent upward trend, particularly the increase in the most recent quarter, suggests a potential shift in the company’s financial risk profile. Continued monitoring of this ratio is recommended to assess the long-term implications of this trend.
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Debt to Assets
Ford Motor Co., debt to assets 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) | |||||||||||||||||||||
| Debt payable within one year | 57,302) | 57,628) | 56,872) | 54,440) | 54,949) | 53,564) | 50,565) | 49,790) | 49,669) | 48,638) | 49,341) | 48,050) | 50,164) | 44,050) | 43,819) | 48,286) | |||||
| Long-term debt payable after one year | 106,034) | 104,312) | 100,855) | 100,830) | 103,573) | 103,694) | 100,336) | 99,625) | 99,562) | 94,024) | 93,895) | 91,242) | 88,805) | 84,279) | 85,008) | 87,315) | |||||
| Total debt | 163,336) | 161,940) | 157,727) | 155,270) | 158,522) | 157,258) | 150,901) | 149,415) | 149,231) | 142,662) | 143,236) | 139,292) | 138,969) | 128,329) | 128,827) | 135,601) | |||||
| Total assets | 289,160) | 300,990) | 292,725) | 284,539) | 285,196) | 287,047) | 276,586) | 274,341) | 273,310) | 268,073) | 265,991) | 256,800) | 255,884) | 246,919) | 245,755) | 252,986) | |||||
| Solvency Ratio | |||||||||||||||||||||
| Debt to assets1 | 0.56 | 0.54 | 0.54 | 0.55 | 0.56 | 0.55 | 0.55 | 0.54 | 0.55 | 0.53 | 0.54 | 0.54 | 0.54 | 0.52 | 0.52 | 0.54 | |||||
| Benchmarks | |||||||||||||||||||||
| Debt to Assets, Competitors2 | |||||||||||||||||||||
| General Motors Co. | 0.46 | 0.46 | 0.47 | 0.47 | 0.46 | 0.44 | 0.45 | 0.44 | 0.45 | 0.42 | 0.43 | 0.43 | 0.43 | 0.43 | 0.44 | 0.44 | |||||
| Tesla Inc. | 0.06 | 0.06 | 0.06 | 0.06 | 0.07 | 0.06 | 0.07 | 0.05 | 0.05 | 0.06 | 0.04 | 0.04 | 0.05 | 0.06 | 0.08 | 0.09 | |||||
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
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 for the analyzed period demonstrates a generally stable trend with some fluctuation. Initially, the ratio decreased from 0.54 in March 2022 to 0.52 by June 2022, remaining at that level through September 2022. A slight increase to 0.54 was observed in December 2022, followed by a further increase to 0.55 in December 2023. The ratio continued to rise, peaking at 0.56 in December 2024, before decreasing slightly to 0.54 in March 2025 and then increasing again to 0.56 in December 2025.
- Overall Trend
- The debt-to-assets ratio has remained relatively consistent, fluctuating between 0.52 and 0.56 over the analyzed timeframe. This suggests a generally stable capital structure, although a slight upward trend is apparent in the latter half of the period.
- Short-Term Fluctuations
- Minor variations occur quarterly. For example, the ratio remained constant for two consecutive quarters (June and September 2022) before experiencing a slight increase. Similar periods of stability are observed between September and December 2023, and between March and June 2025.
- Long-Term Changes
- From the beginning of the period (March 2022) to the end (December 2025), the ratio increased from 0.54 to 0.56. This indicates a modest increase in the proportion of assets financed by debt over the five-year period. The most significant increase occurred between September 2023 (0.53) and December 2024 (0.56).
- Asset and Debt Movements
- Both total debt and total assets generally increased over the period. However, the rate of increase in debt appears to have slightly outpaced the rate of increase in assets, contributing to the observed upward trend in the debt-to-assets ratio. Total debt increased from US$135,601 million to US$163,336 million, while total assets increased from US$252,986 million to US$289,160 million.
The observed fluctuations and the overall trend suggest a dynamic, but generally controlled, financial leverage position. Continued monitoring of this ratio is recommended to assess any potential shifts in the company’s capital structure and associated risk profile.
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Financial Leverage
Ford Motor Co., financial leverage calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Total assets | 289,160) | 300,990) | 292,725) | 284,539) | 285,196) | 287,047) | 276,586) | 274,341) | 273,310) | 268,073) | 265,991) | 256,800) | 255,884) | 246,919) | 245,755) | 252,986) | |||||
| Equity attributable to Ford Motor Company | 35,952) | 47,392) | 45,057) | 44,635) | 44,835) | 44,315) | 43,567) | 42,870) | 42,773) | 44,263) | 43,677) | 42,366) | 43,242) | 42,125) | 44,169) | 44,985) | |||||
| Solvency Ratio | |||||||||||||||||||||
| Financial leverage1 | 8.04 | 6.35 | 6.50 | 6.37 | 6.36 | 6.48 | 6.35 | 6.40 | 6.39 | 6.06 | 6.09 | 6.06 | 5.92 | 5.86 | 5.56 | 5.62 | |||||
| Benchmarks | |||||||||||||||||||||
| Financial Leverage, Competitors2 | |||||||||||||||||||||
| General Motors Co. | 4.60 | 4.34 | 4.36 | 4.38 | 4.44 | 4.08 | 4.12 | 4.15 | 4.25 | 3.78 | 3.85 | 3.82 | 3.89 | 3.99 | 3.96 | 4.05 | |||||
| Tesla Inc. | 1.68 | 1.67 | 1.66 | 1.68 | 1.67 | 1.71 | 1.70 | 1.70 | 1.70 | 1.76 | 1.77 | 1.81 | 1.84 | 1.87 | 1.88 | 1.94 | |||||
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
Financial leverage = Total assets ÷ Equity attributable to Ford Motor Company
= 289,160 ÷ 35,952 = 8.04
2 Click competitor name to see calculations.
Financial leverage, as indicated by the provided figures, exhibits a generally increasing trend over the analyzed period, spanning from March 31, 2022, to December 31, 2025. While fluctuations occur, the overall trajectory suggests a growing reliance on debt financing relative to equity.
- Overall Trend
- The financial leverage ratio begins at 5.62 in March 2022 and generally increases, reaching 8.04 by December 2025. This represents a substantial increase in leverage over the period. The most significant increase occurs between September 2024 and December 2025.
- Short-Term Fluctuations (2022-2023)
- From March 2022 to December 2022, the ratio experiences a moderate increase, moving from 5.62 to 5.92. The first half of 2023 shows relative stability, fluctuating between 6.06 and 6.09. A more pronounced increase is then observed in the latter half of 2023, reaching 6.39 by December.
- Mid-Term Stability (2024)
- Throughout 2024, the ratio remains relatively stable, oscillating between 6.35 and 6.48. This suggests a period where the company maintained a consistent level of financial leverage. However, this stability is followed by a significant shift.
- Significant Increase (2025)
- A substantial increase in financial leverage is evident in 2025. The ratio rises from 6.37 in March to 8.04 by December. This represents the most dramatic change observed throughout the entire period and warrants further investigation to understand the underlying drivers.
The observed trend in financial leverage suggests a potential shift in the company’s capital structure. The increasing ratio indicates a greater proportion of debt financing compared to equity, which could amplify both potential returns and financial risks. The significant increase in the final quarter of 2025 is particularly noteworthy and may indicate a recent strategic decision or external factors impacting financing needs.
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Interest Coverage
Ford Motor Co., interest coverage 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) | |||||||||||||||||||||
| Net income (loss) attributable to Ford Motor Company | (11,064) | 2,447) | (36) | 471) | 1,824) | 892) | 1,831) | 1,332) | (526) | 1,199) | 1,917) | 1,757) | 1,289) | (827) | 667) | (3,110) | |||||
| Add: Net income attributable to noncontrolling interest | 10) | 1) | 7) | 2) | 7) | 4) | 2) | 2) | 3) | (26) | 99) | (94) | (30) | (103) | (29) | (9) | |||||
| Add: Income tax expense | (3,756) | (630) | 570) | 148) | 483) | (27) | 605) | 278) | (1,344) | 214) | 272) | 496) | (93) | (195) | 153) | (729) | |||||
| Add: Interest expense on Company debt excluding Ford Credit | 348) | 321) | 297) | 288) | 295) | 272) | 270) | 278) | 366) | 324) | 304) | 308) | 318) | 321) | 312) | 308) | |||||
| Earnings before interest and tax (EBIT) | (14,462) | 2,139) | 838) | 909) | 2,609) | 1,141) | 2,708) | 1,890) | (1,501) | 1,711) | 2,592) | 2,467) | 1,484) | (804) | 1,103) | (3,540) | |||||
| Solvency Ratio | |||||||||||||||||||||
| Interest coverage1 | -8.43 | 5.41 | 4.77 | 6.55 | 7.49 | 3.57 | 3.88 | 3.69 | 4.05 | 6.58 | 4.59 | 3.38 | -1.40 | 6.10 | 7.71 | 7.10 | |||||
| Benchmarks | |||||||||||||||||||||
| Interest Coverage, Competitors2 | |||||||||||||||||||||
| General Motors Co. | 5.29 | 7.21 | 10.22 | 11.75 | 11.07 | 15.31 | 14.65 | 13.66 | 12.42 | 13.39 | 13.65 | 12.65 | 12.75 | 12.89 | 11.56 | 13.21 | |||||
| Tesla Inc. | 16.62 | 19.97 | 21.42 | 22.07 | 26.69 | 28.48 | 31.31 | 45.64 | 64.93 | 92.91 | 94.40 | 82.09 | 72.83 | 55.02 | 36.16 | 29.34 | |||||
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
Interest coverage
= (EBITQ4 2025
+ EBITQ3 2025
+ EBITQ2 2025
+ EBITQ1 2025)
÷ (Interest expenseQ4 2025
+ Interest expenseQ3 2025
+ Interest expenseQ2 2025
+ Interest expenseQ1 2025)
= (-14,462 + 2,139 + 838 + 909)
÷ (348 + 321 + 297 + 288)
= -8.43
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The interest coverage ratio exhibits considerable fluctuation over the observed period, spanning from March 31, 2022, to December 31, 2025. Initial values indicate a generally healthy ability to meet interest obligations, followed by periods of significant decline and subsequent recovery.
- Initial Period (Mar 31, 2022 – Dec 31, 2022)
- The ratio begins at 7.10 and initially demonstrates a slight increase to 7.71. However, a substantial decrease is then observed, culminating in a negative value of -1.40 by the end of 2022. This indicates that, in the fourth quarter of 2022, earnings before interest and tax were insufficient to cover interest expenses.
- Recovery and Volatility (Mar 31, 2023 – Dec 31, 2023)
- The ratio recovers in the first three quarters of 2023, reaching a peak of 6.58 in September. However, it declines again in the final quarter of 2023, settling at 4.05. This period suggests improved, but inconsistent, profitability relative to interest obligations.
- Continued Fluctuations (Mar 31, 2024 – Jun 30, 2025)
- The ratio continues to fluctuate, reaching 7.49 in December 2024 before experiencing a dramatic decline to -8.43 in December 2025. This final result represents a significant deterioration in the ability to cover interest expenses, mirroring the negative result observed in late 2022, but of a much larger magnitude. The period from March 2024 to June 2025 shows values ranging from 3.69 to 5.41, indicating moderate coverage.
Overall, the trend demonstrates a pattern of volatility. While periods of adequate interest coverage are present, the occurrence of negative ratios in both 2022 and 2025 raises concerns about the consistency of earnings relative to debt servicing costs. The substantial decline at the end of the observed period warrants further investigation into the underlying factors contributing to the reduced earnings before interest and tax.
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