Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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- Income Statement
- Balance Sheet: Liabilities and Stockholders’ Equity
- Cash Flow Statement
- Common-Size Balance Sheet: Assets
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Solvency Ratios
- Analysis of Short-term (Operating) Activity Ratios
- Enterprise Value to FCFF (EV/FCFF)
- Return on Assets (ROA) since 2005
- Aggregate Accruals
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Long-term Activity Ratios (Summary)
Ford Motor Co., long-term (investment) activity ratios
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Net fixed asset turnover | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset) | ||||||
| Total asset turnover | ||||||
| Equity turnover |
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 investment activity ratios demonstrate generally positive trends over the five-year period. Increases are observed in asset utilization and efficiency, suggesting improved profitability from asset deployment. However, the rate of improvement varies across different metrics.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio exhibits a consistent upward trend, increasing from 3.40 in 2021 to 4.67 in 2025. This indicates that the company is generating more revenue per dollar invested in net fixed assets. The increase suggests improved efficiency in utilizing property, plant, and equipment. The growth rate appears to accelerate in the later years of the period.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
- Similar to the standard net fixed asset turnover, this ratio also shows an increasing trend, moving from 3.28 in 2021 to 4.39 in 2025. While the values are lower than the standard net fixed asset turnover, the trend is consistent. The inclusion of operating lease obligations and right-of-use assets provides a more comprehensive view of asset utilization, and the increase suggests improved efficiency when considering these obligations.
- Total Asset Turnover
- The total asset turnover ratio increased from 0.49 in 2021 to 0.61 in 2022 and 2023, then stabilized at 0.61 in 2023 and 2024, before decreasing slightly to 0.60 in 2025. This indicates that the company is becoming more efficient in utilizing all of its assets to generate revenue. The stabilization and slight decline in the final year warrant further investigation, but the overall trend remains positive.
- Equity Turnover
- The equity turnover ratio demonstrates a substantial increase over the period, rising from 2.60 in 2021 to 4.84 in 2025. This signifies that the company is generating more revenue per dollar of equity. The increase suggests improved profitability relative to shareholder investment. The growth is particularly pronounced between 2024 and 2025.
Overall, the ratios suggest improving asset utilization and efficiency. The consistent increases in net fixed asset turnover and equity turnover are particularly noteworthy. The stabilization of the total asset turnover in the later years may require further scrutiny to determine if it represents a plateau or a potential area for improvement.
Net Fixed Asset Turnover
Ford Motor Co., net fixed asset turnover 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) | ||||||
| Company revenues excluding Ford Credit | ||||||
| Net property | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| General Motors Co. | ||||||
| Tesla Inc. | ||||||
| Net Fixed Asset Turnover, Sector | ||||||
| Automobiles & Components | ||||||
| Net Fixed Asset Turnover, Industry | ||||||
| Consumer Discretionary | ||||||
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
Net fixed asset turnover = Company revenues excluding Ford Credit ÷ Net property
= ÷ =
2 Click competitor name to see calculations.
The net fixed asset turnover ratio demonstrates a consistent upward trend over the five-year period. This indicates increasing efficiency in utilizing fixed assets to generate revenue. Revenues excluding Ford Credit have also increased over the same period, contributing to this improved turnover.
- Net Fixed Asset Turnover
- In 2021, the net fixed asset turnover ratio was 3.40. This value increased to 4.00 in 2022, representing a substantial improvement in asset utilization. The ratio continued to rise, reaching 4.06 in 2023 and 4.12 in 2024. The most significant increase occurred between 2024 and 2025, with the ratio reaching 4.67. This suggests a strengthening relationship between revenue generation and the level of net fixed assets.
The increase in the net fixed asset turnover ratio, coupled with the growth in company revenues excluding Ford Credit, suggests effective management of fixed assets. The company appears to be generating more revenue from each dollar invested in fixed assets over time. The substantial increase in the ratio from 2024 to 2025 warrants further investigation to understand the specific drivers of this improvement, such as increased production capacity, improved operational efficiency, or a shift in asset mix.
- Relationship to Net Property
- Net property, plant, and equipment experienced an increase from US$37,139 million in 2021 to US$41,928 million in 2024. However, in 2025, net property decreased to US$37,288 million. Despite the initial increase in net property, the net fixed asset turnover ratio continued to improve, indicating that revenue growth outpaced the growth in fixed assets for most of the period. The decrease in net property in 2025 coincided with the largest increase in the turnover ratio, potentially indicating asset optimization or disposal of underperforming assets.
Overall, the observed trends suggest a positive development in the company’s ability to efficiently convert investments in fixed assets into revenue. Continued monitoring of this ratio, alongside analysis of the underlying factors driving these changes, is recommended.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Ford Motor Co., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Company revenues excluding Ford Credit | ||||||
| Net property | ||||||
| Operating lease right-of-use assets (included in Other assets) | ||||||
| Net property (including operating lease, right-of-use asset) | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| General Motors Co. | ||||||
| Tesla Inc. | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Automobiles & Components | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Consumer Discretionary | ||||||
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
Net fixed asset turnover (including operating lease, right-of-use asset) = Company revenues excluding Ford Credit ÷ Net property (including operating lease, right-of-use asset)
= ÷ =
2 Click competitor name to see calculations.
The analysis reveals a generally positive trend in the net fixed asset turnover ratio over the five-year period. Company revenues excluding Ford Credit demonstrate consistent growth, while net property, plant, and equipment (including operating leases and right-of-use assets) fluctuates. These movements collectively influence the observed turnover ratio.
- Revenue Trend
- Company revenues excluding Ford Credit increased from US$126,268 million in 2021 to US$173,996 million in 2025. This represents a substantial overall increase, with the most significant growth occurring between 2021 and 2022. Revenue growth moderates in subsequent years, indicating a potentially maturing growth rate.
- Net Property, Plant, and Equipment Trend
- Net property, plant, and equipment (including operating lease, right-of-use asset) experienced a moderate increase from US$38,476 million in 2021 to US$44,236 million in 2024. However, a decrease is observed in 2025, with the value falling to US$39,677 million. This suggests potential asset disposals or depreciation exceeding new investments towards the end of the period.
- Net Fixed Asset Turnover Ratio
- The net fixed asset turnover ratio, which measures the efficiency with which a company uses its assets to generate sales, increased from 3.28 in 2021 to 4.39 in 2025. This indicates improving efficiency in asset utilization. The ratio shows consistent improvement from 2021 to 2024, with a slight acceleration in the final year. The increase suggests that the company is generating more revenue per dollar of net fixed assets.
The combined effect of increasing revenues and fluctuating net property, plant, and equipment results in a positive trend for the net fixed asset turnover ratio. The decrease in net property in 2025, coupled with relatively stable revenue, contributes to the most significant increase in the ratio during that year. This suggests a heightened efficiency in asset utilization despite a reduction in the asset base.
Total Asset Turnover
Ford Motor Co., total asset turnover calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Company revenues excluding Ford Credit | ||||||
| Total assets | ||||||
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | ||||||
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| General Motors Co. | ||||||
| Tesla Inc. | ||||||
| Total Asset Turnover, Sector | ||||||
| Automobiles & Components | ||||||
| Total Asset Turnover, Industry | ||||||
| Consumer Discretionary | ||||||
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
Total asset turnover = Company revenues excluding Ford Credit ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
The total asset turnover ratio exhibited an increasing trend from 2021 to 2023, followed by stabilization and a slight decline. This indicates a changing efficiency in how effectively assets are utilized to generate revenue.
- Total Asset Turnover Trend
- In 2021, the total asset turnover ratio was 0.49. This value increased to 0.58 in 2022, representing a notable improvement in asset utilization. The ratio continued to rise, reaching 0.61 in 2023. From 2023 to 2024, the ratio remained constant at 0.61. A minor decrease to 0.60 was observed in 2025.
The initial increase in the ratio suggests the company became more efficient at generating sales from its asset base. The subsequent stabilization at 0.61 for 2023 and 2024 implies a consistent level of asset utilization during those years. The slight decrease in 2025, while minimal, warrants further investigation to determine if it signals a developing trend or is simply a temporary fluctuation.
- Revenue and Asset Relationship
- Company revenues excluding Ford Credit increased consistently from US$126,268 million in 2021 to US$173,996 million in 2025. Total assets also generally increased over the period, moving from US$257,035 million in 2021 to US$289,160 million in 2025. The initial rise in the asset turnover ratio occurred despite the increase in total assets, indicating that revenue growth outpaced asset growth in the earlier years. The stabilization and slight decline in the ratio in later years suggest a more proportional relationship between revenue and asset increases.
Overall, the asset turnover ratio demonstrates a period of improving efficiency followed by a period of relative stability, with a minor decrease in the most recent year. Continued monitoring of this ratio is recommended to assess whether the 2025 decrease is indicative of a broader trend.
Equity Turnover
Ford Motor Co., equity turnover calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Company revenues excluding Ford Credit | ||||||
| Equity attributable to Ford Motor Company | ||||||
| Long-term Activity Ratio | ||||||
| Equity turnover1 | ||||||
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| General Motors Co. | ||||||
| Tesla Inc. | ||||||
| Equity Turnover, Sector | ||||||
| Automobiles & Components | ||||||
| Equity Turnover, Industry | ||||||
| Consumer Discretionary | ||||||
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
Equity turnover = Company revenues excluding Ford Credit ÷ Equity attributable to Ford Motor Company
= ÷ =
2 Click competitor name to see calculations.
The equity turnover ratio demonstrates an increasing trend over the five-year period. Revenues excluding Ford Credit also exhibit a generally positive trajectory, though with diminishing growth in later years. The interplay between these two factors drives the observed changes in equity turnover.
- Equity Turnover
- The equity turnover ratio, which measures how efficiently a company utilizes shareholder equity to generate revenue, increased from 2.60 in 2021 to 3.45 in 2022. This initial increase suggests improved efficiency in revenue generation relative to equity. Further gains were observed, reaching 3.88 in 2023. While there was a slight decrease to 3.85 in 2024, the ratio continued to climb significantly to 4.84 in 2025. This final increase indicates a substantial improvement in the company’s ability to generate sales from its equity base.
- Revenue Trend
- Company revenues excluding Ford Credit increased from US$126,268 million in 2021 to US$149,079 million in 2022, representing a significant growth rate. The growth continued, albeit at a slower pace, reaching US$165,901 million in 2023. Revenue growth further decelerated to US$172,706 million in 2024, and remained relatively stable at US$173,996 million in 2025. The slowing revenue growth in the latter years, coupled with the continued increase in equity turnover, suggests that the efficiency gains are not solely driven by increased sales volume.
- Equity Trend & Combined Effect
- Equity attributable to Ford Motor Company decreased from US$48,519 million in 2021 to US$43,242 million in 2022, and continued a slight downward trend to US$42,773 million in 2023. A modest increase to US$44,835 million was observed in 2024, but equity then decreased substantially to US$35,952 million in 2025. The decreasing equity base, particularly the significant drop in 2025, contributes significantly to the higher equity turnover ratio observed in that year. The combination of relatively stable revenues and decreasing equity results in a higher ratio, indicating greater revenue generation per unit of equity.
In summary, the increasing equity turnover ratio is driven by a combination of revenue growth and, more prominently, a reduction in equity attributable to Ford Motor Company. The substantial increase in the ratio in 2025 is largely attributable to the significant decrease in equity during that period.