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Ford Motor Co Altman Z-Score

: 1.27 (As of Today)
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Warning Sign:

Altman Z-score of 1.26 is in distress zone. This implies bankruptcy possibility in the next two years.

Ford Motor Co has a Altman Z-Score of 1.27, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

The zones of discrimination were as such:

When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.

The historical rank and industry rank for Ford Motor Co's Altman Z-Score or its related term are showing as below:

F' s Altman Z-Score Range Over the Past 10 Years
Min: 0.22   Med: 1.08   Max: 2.6
Current: 1.26

During the past 13 years, Ford Motor Co's highest Altman Z-Score was 2.60. The lowest was 0.22. And the median was 1.08.


Ford Motor Co Altman Z-Score Historical Data

The historical data trend for Ford Motor Co's Altman Z-Score 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
Altman Z-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.23 1.12 1.01 0.86 1.38

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
Altman Z-Score 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 1.08 1.05 1.38 1.20 1.22

Competitive Comparison

For the Auto Manufacturers subindustry, Ford Motor Co's Altman Z-Score, along with its competitors' market caps and Altman Z-Score 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 Altman Z-Score Distribution

For the Vehicles & Parts industry and Consumer Cyclical sector, Ford Motor Co's Altman Z-Score distribution charts can be found below:

* The bar in red indicates where Ford Motor Co's Altman Z-Score falls into.



Ford Motor Co Altman Z-Score Calculation

Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

Ford Motor Co's Altman Z-Score for today is calculated with this formula:

Z=1.2*X1+1.4*X2+3.3*X3+0.6*X4+1.0*X5
=1.2*0.057+1.4*0.1323+3.3*0.0688+0.6*0.3079+1.0*0.6023
=1.27

* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.

Trailing Twelve Months (TTM) ended in Jun. 2022:
Total Assets was $245,755 Mil.
Total Current Assets was $100,469 Mil.
Total Current Liabilities was $86,452 Mil.
Retained Earnings was $32,511 Mil.
Pre-Tax Income was 791 + -3848 + 11218 + 1885 = $10,046 Mil.
Interest Expense was -1684 + -1665 + -1736 + -1776 = $-6,861 Mil.
Revenue was 40190 + 34476 + 37678 + 35683 = $148,027 Mil.
Market Cap (Today) was $62,052 Mil.
Total Liabilities was $201,518 Mil.

* Note that for stock reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data.

X1=Working Capital/Total Assets
=(Total Current Assets - Total Current Liabilities)/Total Assets
=(100469 - 86452)/245755
=0.057

X2=Retained Earnings/Total Assets
=32511/245755
=0.1323

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(10046 - -6861)/245755
=0.0688

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=62052.367/201518
=0.3079

X5=Revenue/Total Assets
=148027/245755
=0.6023

The zones of discrimination were as such:

Distress Zones - 1.81 < Grey Zones < 2.99 - Safe Zones

Ford Motor Co has a Altman Z-Score of 1.27 indicating it is in Distress Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.


Ford Motor Co  (NYSE:F) Altman Z-Score Explanation

X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.

X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.

X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.

X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.

X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.

Read more about Altman Z-Score and the original research.


Be Aware

Altman Z-Score does not apply to financial companies.


Ford Motor Co Altman Z-Score Related Terms

Thank you for viewing the detailed overview of Ford Motor Co's Altman Z-Score 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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