To The Moon

Bullish Points:

- Ford Motor Company reported an increase in total revenues to $42,777 million in Q1 2024 from $41,474 million in Q1 2023.

- Selling, administrative, and other expenses decreased to $2,376 million in Q1 2024 from $2,506 million in Q1 2023.

- Financing income showed a significant increase from $1,301 million in Q1 2023 to $1,819 million in Q1 2024.

- Unearned revenue associated with extended service contracts increased from $4.8 billion at the end of 2023 to $4.9 billion at the end of Q1 2024.

- Total equity increased slightly to $42,897 million as of March 31, 2024, from $42,798 million as of December 31, 2023.

- Dividends and dividend equivalents declared for Q1 2024 were $0.33 per share, including a regular dividend of $0.15 per share and a supplemental dividend of $0.18 per share.

- Sales proceeds from the sale of AFS securities increased significantly from $1,163 million in Q1 2023 to $3,719 million in Q1 2024.

- Ford Credit did not recognize any credit loss during the first quarter of 2024.

- Ford Pro's EBIT increased by $1.6 billion, with a margin of 16.7%, driven by higher volume, favorable mix, and higher net pricing.

- Ford Credit's EBT for Q1 2024 was $326 million, a $23 million increase from Q1 2023.

- The company's total assets increased from $256.8 billion in Q1 2023 to $274.3 billion in Q1 2024.

- Ford Credit's total net receivables increased by 10% to $136 billion in Q1 2024 compared to the previous year.

- Net liquidity for Ford Credit increased slightly by $1 billion to $27 billion in Q1 2024.

- The company aims to maintain a strong balance sheet with a cash balance target at or above $20 billion plus additional liquidity.

- Ford's credit ratings by DBRS, Fitch, Moody's, and S&P are stable with no rating actions since the 2023 Form 10-K Report.

- 2024 guidance for Ford includes adjusted EBIT of $10 billion to $12 billion and adjusted free cash flow of $6.5 billion to $7.5 billion.

- Ford Credit expects EBT of about $1.5 billion for the full year of 2024.

- The outlook for 2024 assumes flat to modest U.S. industry growth and $2 billion in cost reductions.

Bearish Points:

- Net income attributable to Ford Motor Company for Q1 2024 was $1,332 million, a decrease from $1,757 million in Q1 2023.

- Basic and diluted earnings per share for Q1 2024 were $0.33, down from $0.44 in Q1 2023.

- The cost of sales increased to $36,476 million in Q1 2024 from $34,669 million in Q1 2023.

- Ford Credit interest, operating, and other expenses increased to $2,700 million in Q1 2024 from $2,186 million in Q1 2023.

- Cash and cash equivalents decreased to $19,721 million as of March 31, 2024, from $24,862 million as of December 31, 2023.

- The company recorded a decrease related to revenue recognized in prior periods of $178 million in Q1 2023 and $707 million in Q1 2024 due to changes in estimate of variable consideration.

- Gross unrealized losses on AFS securities increased from $274 million at the end of 2023 to $260 million at the end of Q1 2024.

- High inflation and interest rates are causing economic uncertainty, potentially impacting future consumer credit losses.

- Total inventories increased to $18,632 million as of March 31, 2024, from $15,651 million at the end of 2023.

- Company debt excluding Ford Credit increased to $20,157 million in Q1 2024 from $19,944 million at the end of 2023.

- The company recorded costs of $681 million and $608 million in the first quarter of 2023 and 2024, respectively, related to exit and disposal activities.

- The company's accumulated other comprehensive income/(loss) showed a net loss on foreign currency translation of $114 million in the first quarter of 2024.

- Ford Blue's EBIT decreased by $1.7 billion, with a margin of 4.2%, primarily due to lower F-150 volume and higher material and warranty costs.

- Ford Model e reported an increased EBIT loss of $598 million, mainly due to lower net pricing and exchange rates.

- Operating cash flows decreased by $1.4 billion from Q1 2023 to Q1 2024.

- The company's net income margin decreased by 1.1 percentage points, and adjusted EBIT margin decreased by 1.7 percentage points year-over-year.

- Auction values for U.S. off-lease vehicles decreased by 10% in Q1 2024 compared to the same period last year.

- Company cash excluding Ford Credit decreased from $28.8 billion at the end of 2023 to $25.1 billion at the end of Q1 2024.

- Company liquidity decreased from $46.4 billion at the end of 2023 to $42.6 billion at the end of Q1 2024.

- Cash net of debt decreased from $8.9 billion to $4.9 billion.

- Company adjusted free cash flow was negative $0.5 billion in Q1 2024, a decrease from $0.7 billion in Q1 2023.

- Adjusted Return on Invested Capital (ROIC) for the four quarters ending March 31, 2024, is 12.7%.

The final result summarized from the above points indicates that while Ford Motor Company has shown resilience in certain areas, such as increased total revenues and financing income, and has maintained a strong balance sheet, there are also significant challenges. These include a decrease in net income and earnings per share, increased costs of sales, and economic uncertainties that may impact future performance. The company is actively managing its exit and disposal activities and is investing in strategic areas such as electric vehicles and battery production. However, the decrease in cash and cash equivalents, along with the negative adjusted free cash flow, suggests that Ford will need to carefully manage its resources to navigate the current economic landscape and continue its transformation efforts.

For more information, you can read the original text of Ford(F)'s financial report .