2022 Cash Flow Analysis for Ford Motor Co F

Ford Motor Co is a renowned automobile manufacturer that designs, manufactures, and sells a range of vehicles globally. The company is headquartered in Dearborn, Michigan, and was founded in 1903. Ford is recognized for its iconic vehicles, such as the Ford Mustang and F-Series trucks, as well as its advancements in automotive technology and commitment to sustainability.

The cash flow statement is a crucial financial document that outlines how much cash or cash equivalents a company has generated and used over a specific period. It is divided into three sections: operating activities, investing activities, and financing activities. This statement provides investors and analysts with insights into how a company is managing its cash resources.

How to read the chart

The chart above illustrates the cash flow of Ford Motor Co in 2022. The width of the bars represents the amount of cash flow, with wider bars indicating larger amounts.

We begin on the left with the company's cash position at the start of the year. The cash increased during the year, with cash inflows primarily from operating activities. The cash flow from operating activities is the largest source of cash, followed by positive cash flow from financing activities.

The cash flow from investing activities is negative, indicating that the company spent more on new investments than it received from selling assets or investments. The cash flow from financing activities is positive, reflecting that the company raised more cash through activities such as issuing debt or equity than it paid out for purposes like debt repayments or dividend payments.

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

Real-Time Cash Flow Counter

To provide a sense of the scale of Ford Motor Co's cash flow, we have created a real-time counter that simulates the company's cash flow for 2022. 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 the company's reported cash flow for 2022. The counter is intended to give you an understanding of the scale of the company's cash flow and how quickly it moves.

Cash Flow Statement

In 2022, Ford Motor Co generated $6,853 million in cash from operating activities, spent $4,347 million on investing activities, and received $2,511 million from financing activities. As a result, the company's cash balance increased by $4,603 million during the year.

The company's beginning cash balance was $20,737 million, which typically includes cash and cash equivalents, such as short-term investments that can be easily converted into cash. The company's ending cash balance was $25,340 million.

The company's capital expenditures for the year were $6,866 million. This amount represents the cash the company 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 negative $13 million in 2022. This indicates that the company had limited cash available for dividends, stock repurchases, or other investments after accounting for capital expenditures.

Summary

Ford Motor Co's cash flow in 2022 highlights a significant increase in cash balance, primarily driven by strong cash flow from operating activities. Despite the positive cash flow from financing activities, the company faced challenges with its investing activities, leading to a negative free cash flow. This suggests that while Ford was able to generate cash through its core operations and financing efforts, its investments in long-term assets were substantial, impacting its overall cash availability for other purposes.