Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Ford Motor Co's annualized net income for the quarter that ended in Dec. 2023 was $-2,104 Mil. Ford Motor Co's average shareholder tangible equity for the quarter that ended in Dec. 2023 was $43,518 Mil. Therefore, Ford Motor Co's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2023 was -4.83%.
The historical rank and industry rank for Ford Motor Co's Return-on-Tangible-Equity or its related term are showing as below:
F'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -4.32 Med: 10.25 Max: 45.52
Current: 10.05
During the past 13 years, Ford Motor Co's highest Return-on-Tangible-Equity was 45.52%. The lowest was -4.32%. And the median was 10.25%.
F's Return-on-Tangible-Equity is ranked better than 55.33% of 1247
companies
in the Vehicles & Parts industry
Industry Median: 8.35
vs F: 10.05
Ford Motor Co Return-on-Tangible-Equity Historical Data
The historical data trend for Ford Motor Co's Return-on-Tangible-Equity 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.
For the Auto Manufacturers subindustry, Ford Motor Co's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity Distribution
For the Vehicles & Parts industry and Consumer Cyclical sector, Ford Motor Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Ford Motor Co's Return-on-Tangible-Equity falls into.
Ford Motor Co Return-on-Tangible-Equity Calculation
Ford Motor Co's annualized Return-on-Tangible-Equity 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-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Dec. 2023) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
Ford Motor Co (NYSE:F) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Ford Motor Co Return-on-Tangible-Equity Related Terms
Thank you for viewing the detailed overview of Ford Motor Co's Return-on-Tangible-Equity 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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