Ford's gross profit declined in Q1 2024 due to a combination of factors:
- Revenue Decrease: Ford's total revenue for Q1 2024 was $42.78 billion1. However, the revenue for Forward Industries, a subsidiary of Ford, was $7.2 million for the same period, which is a significant decrease from $9.8 million in 20232. This decline in revenue, particularly from Forward Industries, contributes to the overall gross profit decline.
- Gross Margin Increase: On the positive note, the gross margin for Forward Industries increased to 23.0% in Q1 2024 compared to 20.2% in 20232. This indicates that the subsidiary's profitability improved in terms of gross margin. However, this improvement was not enough to offset the overall decline in gross profit due to the revenue decrease.
- Operating Expenses: The operating expenses for Ford's automotive operations were not provided in the report. However, it is important to note that any increase in operating expenses can eat into gross profit. Without specific data on operating expenses for Q1 2024, it is difficult to assess their impact on the gross profit decline.
In conclusion, the decline in Ford's gross profit in Q1 2024 is primarily due to the revenue decrease, particularly from Forward Industries, despite an increase in gross margin for the subsidiary.
3/30/2025 03:16am
