2023 Cash Flow Analysis for Ford Motor Co F

Ford Motor Co is a renowned automotive company that designs, manufactures, and sells vehicles and automotive parts worldwide. The company is headquartered in Dearborn, Michigan, and was founded in 1903. Ford is recognized for its wide range of vehicles, including cars, trucks, and SUVs, as well as its commitment to innovation in the automotive industry.

The cash flow statement provides insight into 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 is crucial for investors and analysts to understand how Ford is managing its cash resources.

How to read the chart

The chart above illustrates the cash flow of Ford Motor Co in 2023. 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. Given that the cash decreased during the year, a portion of that cash was used for investing activities, while operating activities generated significant cash. The cash flow from operating activities is the largest source of cash, while investing activities resulted in a substantial cash outflow.

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 received more cash from sources 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 2023. 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 2023. 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 2023, Ford Motor Co generated $14,918 million in cash from operating activities, spent $17,628 million on investing activities, and received $2,584 million from financing activities. Consequently, the company's cash balance decreased by $126 million during the year.

The company's beginning cash balance was $25,340 million. Typically, this amount includes cash and cash equivalents, such as short-term investments that can be easily converted into cash. The company's ending cash balance was $25,110 million.

The company's capital expenditures for the year were $8,236 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 $6,682 million in 2023. This amount represents the cash the company has available to pay dividends, repurchase stock, or make other investments.

Summary

Ford Motor Co's cash flow in 2023 highlights a strong generation of cash from operating activities, which was the primary source of cash for the company. However, significant outflows in investing activities, mainly due to capital expenditures, resulted in an overall decrease in cash. The positive cash flow from financing activities indicates that Ford was able to secure additional funds, possibly through debt or equity issuance, which helped offset some of the cash outflows from investments. Overall, Ford's management of cash resources reflects its strategic focus on investing in future growth while maintaining liquidity.