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Ford Motor Co ROA %

: 1.07% (As of Jun. 2022)
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ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Ford Motor Co's annualized Net Income for the quarter that ended in Jun. 2022 was $2,668 Mil. Ford Motor Co's average Total Assets over the quarter that ended in Jun. 2022 was $249,371 Mil. Therefore, Ford Motor Co's annualized ROA % for the quarter that ended in Jun. 2022 was 1.07%.

The historical rank and industry rank for Ford Motor Co's ROA % or its related term are showing as below:

F' s ROA % Range Over the Past 10 Years
Min: -0.49   Med: 2.52   Max: 6.84
Current: 4.64

During the past 13 years, Ford Motor Co's highest ROA % was 6.84%. The lowest was -0.49%. And the median was 2.52%.

F's ROA % is ranked better than
66.05% of 1237 companies
in the Vehicles & Parts industry
Industry Median: 2.85 vs F: 4.64

Ford Motor Co ROA % Historical Data

The historical data trend for Ford Motor Co's ROA % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Ford Motor Co Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
ROA %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.11 1.43 0.02 -0.49 6.84

Ford Motor Co Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
ROA % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.88 2.92 19.28 -4.88 1.07

Competitive Comparison

For the Auto Manufacturers subindustry, Ford Motor Co's ROA %, along with its competitors' market caps and ROA % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Ford Motor Co ROA % Distribution

For the Vehicles & Parts industry and Consumer Cyclical sector, Ford Motor Co's ROA % distribution charts can be found below:

* The bar in red indicates where Ford Motor Co's ROA % falls into.



Ford Motor Co ROA % Calculation

Ford Motor Co's annualized ROA % for the fiscal year that ended in Dec. 2021 is calculated as:

ROA %=Net Income (A: Dec. 2021 )/( (Total Assets (A: Dec. 2020 )+Total Assets (A: Dec. 2021 ))/ count )
=17937/( (267261+257035)/ 2 )
=17937/262148
=6.84 %

Ford Motor Co's annualized ROA % for the quarter that ended in Jun. 2022 is calculated as:

ROA %=Net Income (Q: Jun. 2022 )/( (Total Assets (Q: Mar. 2022 )+Total Assets (Q: Jun. 2022 ))/ count )
=2668/( (252986+245755)/ 2 )
=2668/249370.5
=1.07 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data, the Net Income data used here is four times the quarterly (Jun. 2022) net income data. ROA % is displayed in the 30-year financial page.


Ford Motor Co  (NYSE:F) ROA % Explanation

ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A bank’s ROA % is typically well under 2%.

Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:

ROA %(Q: Jun. 2022 )
=Net Income/Total Assets
=2668/249370.5
=(Net Income / Revenue)*(Revenue / Total Assets)
=(2668 / 160760)*(160760 / 249370.5)
=Net Margin %*Asset Turnover
=1.66 %*0.6447
=1.07 %

Note: The Net Income data used here is four times the quarterly (Jun. 2022) net income data. The Revenue data used here is four times the quarterly (Jun. 2022) revenue data.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).

Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.

E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.


Ford Motor Co ROA % Related Terms

Thank you for viewing the detailed overview of Ford Motor Co's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.


Ford Motor Co Business Description

Ford Motor Co logo
Address
One American Road, Dearborn, MI, USA, 48126
Ford Motor Co. manufactures automobiles under its Ford and Lincoln brands. In March 2022 the company announced that it will run its combustion engine business, Ford Blue, and its BEV business, Ford Model e, as separate businesses but still all under Ford Motor Company. The company has about 12.5% market share in the United States, about 6.5% share in Europe, and about 2.4% share in China including unconsolidated affiliates. We expect market share increases as inventory improves coming out of the chip shortage. Sales in the U.S. made up about 64% of 2021 total company revenue. Ford has about 183,000 employees, including about 56,000 UAW employees, and is based in Dearborn, Michigan.
Executives
Waldo Jennifer officer: Chief People & E. Exp. Officer ONE AMERICAN ROAD DEARBORN MI 48126
Gjaja Marin officer: Chief Cust. Off., Ford Model e ONE AMERICAN ROAD DEARBORN MI 48126
Cannis Theodore J. officer: CEO of Ford Pro ONE AMERICAN ROAD DEARBORN MI 48126
May John C Ii director DEERE & COMPANY ONE JOHN DEERE PLACE MOLINE IL 61265
Amend Michael officer: Chief Digital & Info. Officer ONE AMERICAN ROAD DEARBORN MI 48126
Field John Douglas officer: Chief AT&ES Officer ONE AMERICAN ROAD DEARBORN MI 48126
Croley Steven P. officer: Chief Policy Ofcr, Gen Counsel ONE AMERICAN ROAD DEARBORN MI 48126
English Alexandra Ford director ONE AMERICAN ROAD DEARBORN MI 48126
Ford Iii Henry director ONE AMERICAN ROAD DEARBORN MI 48126
Mellen John F officer: General Counsel ONE AMERICAN ROAD DEARBORN MI 48126
Mooney Beth E director 315 DEADERICK STREET NASHVILLE TN 37237
Stone Timothy R officer: Chief Financial Officer ONE AMERICAN ROAD DEARBORN MI 48126
Mcclelland David W. officer: Vice President ONE AMERICAN ROAD DEARBORN MI 48138
Chen Anning officer: Group Vice President ONE AMERICAN ROAD DEARBORN MI 48126
Johnson Gary Alan officer: Group Vice President ONE AMERICAN ROAD DEARBORN MI 48126

Ford Motor Co Headlines

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