When it comes to the Ford net worth, understanding its financial landscape is key.
Ford, one of the most recognized names in the automotive world, boasts strong revenue streams across its business segments.
Let’s explore how this automaker continues to maintain its financial strength and what 2024 holds.
Quick Facts
| FACT | DETAIL |
|---|---|
| Name | Ford Motor Company |
| Full Name | Ford Motor Company |
| Website | corporate.ford.com |
| Industry | Automotive |
| Traded as | NYSE: F |
| ISIN | N/A |
| Founded | June 16, 1903 |
| Founders | Henry Ford |
| Country/Territory | United States |
| Headquarters | Dearborn, Michigan |
| Chief Executive Officer | Jim Farley |
| Number of Employees | 175,000 |
| Market Cap | $42.01 Billion |
| Total Assets | $276.6 Billion |
| Total Equity | $43.6 Billion |
| Revenue | $47.8 Billion (Q2 2024) |
| Net Income | $1.8 Billion (Q2 2024) |
What is the Net Worth/Market Cap Of Ford in 2024?
In 2024, Ford’s market cap stands at $42.01 billion, making it one of the most significant players in the automotive industry.
Comparatively, this positions Ford within the top automotive manufacturers globally but behind some other giants.
Understanding the market cap helps gauge Ford’s standing among related companies. Here are a few brands and competitors in Ford’s circle:
- General Motors (GM)
- Tesla
- Toyota
- Volkswagen Group
- Stellantis
- Honda
- Nissan
- BMW Group
- Mercedes-Benz Group
- Hyundai Motor Company
For more insights on how Ford stacks up against some of the wealthiest companies worldwide, you can read further on Ando Money’s analysis of top companies.
Ford Financial Performance Overview
Business Segments and Their Financial Contributions
Ford’s financial performance revolves around three main business segments: Ford Pro, Ford Blue, and Ford Model e. Each plays a vital role in driving the company’s overall revenue, which reached $47.8 billion in Q2 2024.
Ford Blue is responsible for the gas and hybrid vehicle sales, Ford Pro focuses on commercial vehicles and services, and Ford Model e deals with electric vehicle development and innovation.
Each segment strategically contributes to the overall profitability, ensuring a diversified revenue base.
Growth and Performance of Ford Pro
One of Ford’s key strengths is its Ford Pro segment, which has shown strong growth. With $17 billion in Q2 2024 revenue, it significantly contributes to the company’s financial standing.
Ford Pro’s EBIT for the same period was $2.6 billion, demonstrating a 15% margin. A notable factor behind this growth is the demand for Super Duty trucks and Transit vans, which are highly sought after by commercial customers.
Moreover, the segment’s popularity is evident as these vehicles sell almost as fast as they are produced, indicating strong market demand.
Ford Blue: Gas and Hybrid Vehicle Segment
Ford Blue remains the heart of Ford’s core operations, dealing with gas-powered and hybrid vehicles. The segment recorded $26.7 billion in Q2 2024 revenue.
Ford’s hybrid sales have seen an impressive 34% increase compared to last year, now making up nearly 9% of Ford’s global vehicle mix.
This rise in hybrid sales signifies a crucial shift toward more environmentally friendly vehicle options while also diversifying the company’s offerings to cater to changing consumer preferences.
The EBIT for Ford Blue reached $1.2 billion, although it was somewhat impacted by increased warranty costs.
Nevertheless, the strong pricing for trucks and continuous hybrid sales growth are vital contributors to the segment’s revenue.
Ford Model e and the Electric Vehicle Market
Ford’s commitment to electrification is evident in its Model e division. However, the segment faces challenges, primarily in the form of pricing pressures for first-generation electric vehicles.
With $1.1 billion in revenue for Q2 2024, Ford Model e experienced a loss of $1.1 billion in EBIT. Despite these challenges, there has been a notable $400 million reduction in costs, highlighting the company’s proactive steps toward reducing expenses and optimizing its EV offerings.
Financial Performance of Ford Credit
Ford’s financial services branch, Ford Credit, plays a critical role in supporting the company’s cash flow and revenue.
The segment saw financing revenue of $2.997 billion in Q2 2024, with finance receivables increasing to $47.4 billion.
Ford Credit offers financial solutions, including retail and dealer financing, which support vehicle sales and consumer purchasing power. The segment’s profitability helps stabilize Ford’s overall financial health and provides a steady stream of income.
Adjusted EBIT and Cash Flow Analysis
Ford’s Adjusted EBIT for Q2 2024 stands at $2.8 billion, underscoring the company’s ability to maintain profitability.
Meanwhile, the adjusted free cash flow came in at $3.2 billion, reinforcing Ford’s strong liquidity and financial position.
The overall operating cash flow of $5.5 billion showcases the company’s efficiency in generating revenue and managing expenses.
Ford’s forward-looking guidance suggests an Adjusted EBIT between $10 billion and $12 billion for the full year of 2024, and the adjusted free cash flow has been raised to between $7.5 billion and $8.5 billion.
These positive cash flow projections reflect Ford’s focus on operational efficiency and sustained profitability.
Ford’s Investment in Quality and Cost Reduction
Ford is making significant strides in improving the quality of its products.
The company’s investment in quality improvements has positive implications, as it aims to reduce warranty costs and enhance customer satisfaction.
With declines in the number of incidents during the first three months of service (3MIS), Ford is building a foundation for long-term cost efficiency.
Such quality improvements align with Ford’s broader strategy to raise product standards while maintaining profitability.
Revenue Outlook and Future Growth Strategies
Ford’s outlook for the full year of 2024 is optimistic, with solid growth strategies in place.
The focus remains on expanding the Ford Pro segment due to its high demand among commercial clients, maintaining strong sales for Ford Blue’s gas and hybrid vehicles, and continuing innovation in the Ford Model e lineup.
The company also anticipates capital expenditures of $8 to $9 billion, aiming to stay at the lower end of this range to maintain financial discipline and growth.
FAQs About Ford
How is Ford performing financially in 2024?
It reported $47.8 billion in revenue for Q2 2024, a 6% increase year-over-year. The adjusted EBIT was $2.8 billion, with a strong adjusted free cash flow of $3.2 billion.
What is Ford Pro’s significance in revenue?
Ford Pro significantly contributed $17 billion in revenue for Q2 2024, with an EBIT of $2.6 billion.
It remains a crucial part of Ford’s financial growth, particularly in commercial vehicles.
What growth has Ford Blue seen?
Ford Blue’s revenue grew to $26.7 billion in Q2 2024, with a notable increase in hybrid sales, accounting for nearly 9% of Ford’s global vehicle mix.
The segment continues to drive profits from traditional gas and hybrid vehicles.
How does Ford Credit contribute to financial performance?
Ford Credit supports the company’s financial health through retail and dealer financing. It generated $2.997 billion in financing revenue for Q2 2024 and helps maintain steady cash flow.
What are Ford’s financial projections for 2024?
The company projects an adjusted EBIT between $10 billion and $12 billion for 2024, with free cash flow estimates raised to $7.5 to $8.5 billion. The company expects growth across all business segments.
Conclusion
Understanding Ford’s financial performance gives insight into the company’s potential and growth strategies.
If you want to dive deeper into the finances of leading companies, I invite you to leave your thoughts in the comments or explore more on Ando Money.
