Can Ford Keep Increasing Its Top line And Keep Costs Under Control?

+7.03%
Upside
13.18
Market
14.10
Trefis
F: Ford Motor logo
F
Ford Motor

Ford Motor (NYSE: F) saw the ratio of its automotive revenue to its  operating expense decline notably between 2013 and 2014, due to the impact of weak emerging market sales and the closing of two of its U.S. factories for retooling. This in turn led to lower production and sales of its flagship F-150 pick-up truck. Rising incentives lead to lower transaction prices, resulting in a lower operating margin. Now that Ford’s factories are up and running again, we expect Ford’s operational efficiency to return to historical standards.

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Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com

2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Ford Motor

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