Jump to content
  • Greetings Guest!

    CheersandGears.com was founded in 2001 and is one of the oldest continuously operating automotive forums out there.  Come see why we have users who visit nearly every day for the past 16+ years. Signup is fast and free, or you can opt for a premium subscription to view the site ad-free.

FordCosworth

You'll Be Surprised at the Size of Ford Motor Company's War Chest

Recommended Posts

" $27.5 billion. I'll say that again: Twenty-seven point five billion dollars. That's the cash Ford Motor Company had stashed as of December 31. That's not all: On top of that huge hoard, Ford had another $10.8 billion in available-but-unused credit lines as of the same date, for a "total liquidity" of $38.3 billion.

To be clear, that's not some fluke number related to Ford's in-house bank, Ford Credit. That's cash, cash equivalents, and marketable securities available to its core auto-making business. It's a real cash pile, and it's just sitting there.

Why doesn't Ford spend it on new products, or a big share buyback, or fatter dividend payments? Why aren't Ford's shareholders screaming about that idle pile of cash? 

It turns out there's a very good business reason for Ford to have a giant war chest. Read on "

Link

 

Share this post


Link to post
Share on other sites

This is nice to see, they need it to deal with their debt to equity ratio that stands at 4.901.

https://ycharts.com/companies/F/debt_equity_ratio

As you can see here, they cannot really afford to spend when you have almost 209 Billion in Debt. Yes assets of 239 Billion but that still makes this very tight.

https://ycharts.com/companies/F

I wish Ford had gone the route of bankruptcy to unload old legacy debt that is really hurting them.

 

Share this post


Link to post
Share on other sites

Your content will need to be approved by a moderator

Guest
You are commenting as a guest. If you have an account, please sign in.
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • Who's Online   0 Members, 0 Anonymous, 29 Guests (See full list)

    There are no registered users currently online



About us

CheersandGears.com - Founded 2001

We ♥ Cars

Get in touch

Follow us

Recent tweets

facebook

×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.