Ford Motor Co (LIM:F) Interest Coverage

: 0 (At Loss) (As of Dec. 2023)

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Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Ford Motor Co's Operating Income for the three months ended in Dec. 2023 was $-245 Mil. Ford Motor Co's Interest Expense for the three months ended in Dec. 2023 was $-370 Mil. did not have earnings to cover the interest expense. The higher the ratio, the stronger the company's financial strength is.

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

LIM:F' s Interest Coverage Range Over the Past 10 Years
Min: 0.41 Med: 4.1 Max: 9.03
Current: 4.14

LIM:F's Interest Coverage is ranked worse than
65.96% of 1031 companies
in the Vehicles & Parts industry
Industry Median: 7.57 vs LIM:F: 4.14

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Ford Motor Co Interest Coverage Historical Data

The historical data trend for Ford Motor Co's Interest Coverage 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.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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Ford Motor Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

0.55

2.51

4.90

4.14

Ford Motor Co Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage																4.58	6.77	8.04	3.42	-

Competitive Comparison

For the Auto Manufacturers subindustry, Ford Motor Co's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage Distribution

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

* The bar in red indicates where Ford Motor Co's Interest Coverage falls into.

Ford Motor Co Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Ford Motor Co's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Ford Motor Co's Interest Expense was $-1,318 Mil. Its Operating Income was $5,458 Mil. And its Long-Term Debt & Capital Lease Obligation was $100,957 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	5458	/	-1318
	=	4.14

Ford Motor Co's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Ford Motor Co's Interest Expense was $-370 Mil. Its Operating Income was $-245 Mil. And its Long-Term Debt & Capital Lease Obligation was $100,957 Mil.

Ford Motor Co did not have earnings to cover the interest expense.

The higher the ratio, the stronger the company's Financial Strength is.

Ford Motor Co (LIM:F) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Ford Motor Co Interest Coverage Related Terms

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Ford Motor Co (LIM:F) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Ford Motor Co (LIM:F) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

F:USA F:Mexico F_KZ:Kazakhstan 1F:Italy FMC1d:UK 0P4F:UK FMC1:Germany FMC1:Germany FMC1:Germany FMC1:Germany FDMO34:Brazil FORD:Austria

Address

One American Road, Dearborn, MI, USA, 48126

Website

https://www.ford.com

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.