Ford Motor Co (CHIX:FMC1D) Inventory Turnover : 2.40 (As of Sep. 2024)

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What is Ford Motor Co Inventory Turnover?

Inventory Turnover measures how fast the company turns over its inventory within a year. It is calculated as Cost of Goods Sold divided by Total Inventories. Ford Motor Co's Cost of Goods Sold for the three months ended in Sep. 2024 was €38,617 Mil. Ford Motor Co's Average Total Inventories for the quarter that ended in Sep. 2024 was €16,102 Mil. Ford Motor Co's Inventory Turnover for the quarter that ended in Sep. 2024 was 2.40.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Ford Motor Co's Days Inventory for the three months ended in Sep. 2024 was 38.05.

Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue. Ford Motor Co's Inventory-to-Revenue for the quarter that ended in Sep. 2024 was 0.39.

Ford Motor Co Inventory Turnover Historical Data

The historical data trend for Ford Motor Co's Inventory Turnover 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.

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Ford Motor Co Inventory Turnover Chart

Ford Motor Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

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13.26

10.73

10.85

11.10

10.62

Ford Motor Co Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
Inventory Turnover	Get a 7-Day Free Trial															2.24	2.53	2.29	2.43	2.40

Ford Motor Co Inventory Turnover Calculation

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

	Inventory Turnover (A: Dec. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2023 )	/ (	(Total Inventories (A: Dec. 2022 )	+	Total Inventories (A: Dec. 2023 ))	/	count )
=	146748.427	/ (	(13291.52	+	14351.967)	/	2 )
=	146748.427	/	13821.7435
=	10.62

Ford Motor Co's Inventory Turnover for the quarter that ended in Sep. 2024 is calculated as

	Inventory Turnover (Q: Sep. 2024 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Sep. 2024 )	/ (	(Total Inventories (Q: Jun. 2024 )	+	Total Inventories (Q: Sep. 2024 ))	/	count )
=	38616.86	/ (	(15963.007	+	16240.525)	/	2 )
=	38616.86	/	16101.766
=	2.40

Ford Motor Co (CHIX:FMC1d) Inventory Turnover Explanation

Inventory Turnover measures how fast the company turns over its inventory within a year. A higher Inventory Turnover means the company has light inventory. Therefore the company spends less money on storage, write downs, and obsolete inventory. If the inventory is too light, it may affect sales because the company may not have enough to meet demand.

1. Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

Ford Motor Co's Days Inventory for the three months ended in Sep. 2024 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Sep. 2024 )	/	Cost of Goods Sold (Q: Sep. 2024 )	*	Days in Period
	=	16101.766	/	38616.86	*	365 / 4
	=	38.05

2. Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.

Ford Motor Co's Inventory to Revenue for the quarter that ended in Sep. 2024 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Sep. 2024 )	/	Revenue (Q: Sep. 2024 )
	=	16101.766	/	41622.596
	=	0.39

Be Aware

Usually retailers pile up their inventories at holiday seasons to meet the stronger demand. Therefore, the inventory of a particular quarter of a year should not be used to calculate Inventory Turnover. An average inventory is a better indication.

Ford Motor Co Inventory Turnover Related Terms

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Ford Motor Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Ford Motor Co (CHIX:FMC1d) » Definitions » Inventory Turnover

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Traded in Other Exchanges

F:USA F:Peru F:Mexico F_KZ:Kazakhstan 1F:Italy FMC1:Germany FMC1:Germany FMC1:Germany FMC1:Germany F:Canada 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 nearly 13% market share in the United States, about 11% share in the UK, and under 2% share in China including unconsolidated affiliates. Sales in the US made up about 66% of 2023 total company revenue. Ford has about 177,000 employees, including about 59,000 UAW employees, and is based in Dearborn, Michigan.

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