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Ford Motor Co Gross Margin %

: 17.41% (As of Jun. 2022)
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Gross Margin % is calculated as gross profit divided by its revenue. Ford Motor Co's Gross Profit for the three months ended in Jun. 2022 was $6,999 Mil. Ford Motor Co's Revenue for the three months ended in Jun. 2022 was $40,190 Mil. Therefore, Ford Motor Co's Gross Margin % for the quarter that ended in Jun. 2022 was 17.41%.

Warning Sign:

Ford Motor Co gross margin has been in long-term decline. The average rate of decline per year is -4.1%.


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

F' s Gross Margin % Range Over the Past 10 Years
Min: 11.32   Med: 15.46   Max: 16.87
Current: 15.77


During the past 13 years, the highest Gross Margin % of Ford Motor Co was 16.87%. The lowest was 11.32%. And the median was 15.46%.

F's Gross Margin % is ranked worse than
62.21% of 1204 companies
in the Vehicles & Parts industry
Industry Median: 18.90 vs F: 15.77

Ford Motor Co had a gross margin of 17.41% for the quarter that ended in Jun. 2022 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Ford Motor Co was -4.10% per year.


Ford Motor Co Gross Margin % Historical Data

The historical data trend for Ford Motor Co's Gross Margin % 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
Gross Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 16.24 15.01 13.60 11.32 15.91

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
Gross Margin % 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 14.38 15.77 14.03 15.78 17.41

Competitive Comparison

For the Auto Manufacturers subindustry, Ford Motor Co's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % Distribution

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

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



Ford Motor Co Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Ford Motor Co's Gross Margin for the fiscal year that ended in Dec. 2021 is calculated as

Gross Margin % (A: Dec. 2021 )=Gross Profit (A: Dec. 2021 ) / Revenue (A: Dec. 2021 )
=21690 / 136341
=(Revenue - Cost of Goods Sold) / Revenue
=(136341 - 114651) / 136341
=15.91 %

Ford Motor Co's Gross Margin for the quarter that ended in Jun. 2022 is calculated as


Gross Margin % (Q: Jun. 2022 )=Gross Profit (Q: Jun. 2022 ) / Revenue (Q: Jun. 2022 )
=6999 / 40190
=(Revenue - Cost of Goods Sold) / Revenue
=(40190 - 33191) / 40190
=17.41 %

* 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.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


Ford Motor Co  (NYSE:F) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Ford Motor Co had a gross margin of 17.41% for the quarter that ended in Jun. 2022 => No sustainable competitive advantage


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


Ford Motor Co Gross Margin % Related Terms

Thank you for viewing the detailed overview of Ford Motor Co's Gross Margin % 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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