The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. It is calculated as a company's Total Current Assets excludes Total Inventories divides by its Total Current Liabilities. Ford Motor Co's quick ratio for the quarter that ended in Dec. 2023 was 1.04.
Ford Motor Co has a quick ratio of 1.04. It generally indicates good short-term financial strength.
The historical rank and industry rank for Ford Motor Co's Quick Ratio or its related term are showing as below:
XSWX:F'
s Quick Ratio Range Over the Past 10 Years
Min: 1.04 Med: 1.09 Max: 1.61
Current: 1.04
During the past 13 years, Ford Motor Co's highest Quick Ratio was 1.61. The lowest was 1.04. And the median was 1.09.
XSWX:F's Quick Ratio is ranked worse than 50.27% of 1307
companies
in the Vehicles & Parts industry
Industry Median: 1.05
vs XSWX:F: 1.04
Ford Motor Co Quick Ratio Historical Data
The historical data trend for Ford Motor Co's Quick Ratio 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 Quick Ratio
For the Auto Manufacturers subindustry, Ford Motor Co's Quick Ratio, along with its competitors' market caps and Quick Ratio 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 Quick Ratio Distribution in the Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Ford Motor Co's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Ford Motor Co's Quick Ratio falls into.
Ford Motor Co Quick Ratio Calculation
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets.
Ford Motor Co's Quick Ratio 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.
Ford Motor Co (XSWX:F) Quick Ratio Explanation
The quick ratio is more conservative than the Current Ratio because it excludes inventories from current assets. The ratio derives its name presumably from the fact that assets such as cash and marketable securities are quick sources of cash. Inventories generally take time to be converted into cash, and if they have to be sold quickly, the company may have to accept a lower price than book value of these inventories. As a result, they are justifiably excluded from assets that are ready sources of immediate cash.
In general, low or decreasing quick ratios generally suggest that a company is over-leveraged, struggling to maintain or grow sales, paying bills too quickly or collecting receivables too slowly. On the other hand, a high or increasing quick ratio generally indicates that a company is experiencing solid top-line growth, quickly converting receivables into cash, and easily able to cover its financial obligations. Such companies often have faster inventory turnover and cash conversion cycles.
The higher the quick ratio, the better the company's liquidity position.
Ford Motor Co Quick Ratio Related Terms
Thank you for viewing the detailed overview of Ford Motor Co's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
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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