2021 Cash Flow Analysis for Ford Motor Co F

Ford Motor Co is an American multinational automaker headquartered in Dearborn, Michigan. Founded in 1903, Ford is known for its wide range of vehicles, including cars, trucks, and SUVs, as well as its commitment to innovation in the automotive industry. The company has been a leader in the development of electric vehicles and autonomous driving technologies.

The cash flow statement provides insights into how much cash or cash equivalents Ford Motor Co has generated and used over a specific period. It is divided into three sections: operating activities, investing activities, and financing activities. This statement is crucial for investors and analysts to evaluate how Ford is managing its cash resources.

How to read the chart

The chart above illustrates the cash flow of Ford Motor Co in 2021. The width of the bars represents the amount of cash flow, with wider bars indicating larger amounts.

We begin on the left with Ford's cash position at the start of the year. Over the course of the year, the cash decreased, with significant outflows for financing activities. The cash flow from operating activities was the largest source of cash, while investing activities also contributed positively.

The cash flow from investing activities is positive, indicating that Ford received more from selling assets or investments than it spent on new investments. Conversely, the cash flow from financing activities is negative, reflecting that the company paid out more cash for debt repayments, share buybacks, or dividend payments.

After accounting for the change in cash, we conclude on the right with Ford's cash position at the end of the year.

Real-Time Cash Flow Counter

To understand the scale of Ford Motor Co's cash flow, we have created a real-time counter that simulates the company's cash flow for 2021. The counter starts when you scroll to this section and runs at the same speed as the company's reported cash flow.

This is not a live counter of real cash flows as they happen, but a simulation based on Ford's reported cash flow for 2021. The counter is designed to give you a sense of the scale of the company's cash flow and how quickly it moves.

Cash Flow Statement

In 2021, Ford Motor Co generated $15,787 million in cash from operating activities, received $2,745 million from investing activities, and spent $23,498 million on financing activities. Consequently, the company's cash balance decreased by $5,198 million during the year.

The company's beginning cash balance was $25,935 million, which typically includes cash and cash equivalents, such as short-term investments that can be easily converted into cash. The ending cash balance was $20,737 million.

Ford's capital expenditures for the year amounted to $6,227 million, representing the cash spent on investments in property, plant, and equipment. Subtracting capital expenditures from cash flow from operations gives the company's free cash flow, which was $9,560 million in 2021. This amount represents the cash available to pay dividends, repurchase stock, or make other investments.

Summary

Ford Motor Co's cash flow in 2021 highlights a strong performance in generating cash from operating activities, which was the primary source of cash inflow. Despite significant outflows in financing activities, the company maintained a substantial cash balance, demonstrating its ability to manage cash resources effectively. The positive cash flow from investing activities suggests strategic asset management, while the free cash flow indicates potential for future investments and shareholder returns.