Ford Motor's ROE: Better Than Average But Still Room for Improvement

Ford Motor Company's (NYSE:F) 7.0% Return on Equity (ROE) is considered average compared to the Auto industry average of 7.1%. ROE is a measure of a company's profitability in relation to its equity capital. It is calculated by dividing net profit by shareholders' equity. While Ford's ROE is respectable, it's essential to consider the company's debt levels, as high debt can increase the risk of defaulting on interest payments.

Ford Motor Company (NYSE: F) recently reported a Return on Equity (ROE) of 7.0% for the latest quarter, which is slightly below the industry average of 7.1% [NUMBER: 1]. ROE is a critical metric for investors as it indicates the profitability of a company relative to the equity capital invested by shareholders. It is calculated by dividing net profit by shareholders' equity.

While Ford's ROE is respectable, it is essential to consider the company's debt levels. High debt can increase the risk of defaulting on interest payments and may negatively impact the company's financial health. Ford's debt-to-equity ratio is 2.24, indicating a moderate level of debt [NUMBER: 1]. This ratio should be monitored to ensure it remains within a sustainable range.

Ford Motor has also seen increased institutional investment in its shares. Credit Agricole S A, for instance, raised its stake by 37.5% in the first quarter, owning 1,970,498 shares valued at approximately $19.76 million [NUMBER: 1]. This shows confidence from institutional investors in the company's prospects.

The company's quarterly earnings report, released on July 30, 2025, indicated an earnings per share (EPS) of $0.37, beating the consensus estimate of $0.33 by $0.04 [NUMBER: 1]. The firm reported revenue of $50.18 billion, a 5.0% increase compared to the same quarter last year. This performance demonstrates Ford's ability to generate earnings and revenue growth.

Ford Motor also announced a quarterly dividend of $0.15 per share, with an annual yield of 5.2% [NUMBER: 1]. The dividend payout ratio is 76.92%, indicating a significant portion of the company's earnings is being distributed to shareholders. This dividend is set to be paid on September 2, 2025, to shareholders of record on August 11, 2025 [NUMBER: 1].

In summary, Ford Motor Company's ROE of 7.0% is average compared to the industry, but its debt levels and recent earnings performance suggest a balanced financial position. The company continues to attract institutional investment and maintains a steady dividend policy, making it an attractive option for investors seeking a stable, dividend-paying stock in the automotive sector.

References:
[1] https://www.marketbeat.com/instant-alerts/filing-ford-motor-company-f-shares-acquired-by-credit-agricole-s-a-2025-08-20/