Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Ford Motor Co's annualizedNet Income for the quarter that ended in Mar. 2024 was $5,328 Mil. Ford Motor Co's average total tangible assets for the quarter that ended in Mar. 2024 was $273,826 Mil. Therefore, Ford Motor Co's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2024 was 1.95%.
The historical rank and industry rank for Ford Motor Co's Return-on-Tangible-Asset or its related term are showing as below:
F'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -0.77 Med: 1.54 Max: 6.85
Current: 1.65
During the past 13 years, Ford Motor Co's highest Return-on-Tangible-Asset was 6.85%. The lowest was -0.77%. And the median was 1.54%.
F's Return-on-Tangible-Asset is ranked worse than 63.23% of 1300
companies
in the Vehicles & Parts industry
Industry Median: 3.44
vs F: 1.65
Ford Motor Co Return-on-Tangible-Asset Historical Data
The historical data trend for Ford Motor Co's Return-on-Tangible-Asset 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.
Competitive Comparison of Ford Motor Co's Return-on-Tangible-Asset
For the Auto Manufacturers subindustry, Ford Motor Co's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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's Return-on-Tangible-Asset Distribution in the Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Ford Motor Co's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Ford Motor Co's Return-on-Tangible-Asset falls into.
Ford Motor Co Return-on-Tangible-Asset Calculation
Ford Motor Co's annualized Return-on-Tangible-Asset for the fiscal year that ended in Dec. 2023 is calculated as:
* 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 Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2024) net income data.
Ford Motor Co (NYSE:F) Return-on-Tangible-Asset Explanation
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset 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 Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Ford Motor Co Return-on-Tangible-Asset Related Terms
Thank you for viewing the detailed overview of Ford Motor Co's Return-on-Tangible-Asset provided by GuruFocus.com. Please click on the following links to see related term pages.
Ford Motor Co (Ford Motor Co) Business Description
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. The company has about 13% market share in the United States, about 6.5% share in Europe, and about 2.1% share in China including unconsolidated affiliates. We expect market share to increase as inventory improves coming out of the chip shortage. Sales in the U.S. made up about 67% of 2022 total company revenue. Ford has about 173,000 employees, including about 57,000 UAW employees, and is based in Dearborn, Michigan.
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