Ford Motor Company (F) has reported a 37.66 percent plunge in profit for the year ended Dec. 31, 2016. The company has earned $4,596 million, or $1.15 a share in the year, compared with $7,373 million, or $1.84 a share for the last year.
Revenue during the year went up marginally by 1.50 percent to $151,800 million from $149,558 million in the previous year. Gross margin for the year contracted 139 basis points over the previous year to 10.75 percent. Total expenses were 97.29 percent of annual revenues, up from 94.89 percent for the last year. That has resulted in a contraction of 240 basis points in operating margin to 2.71 percent.
Operating income for the year was $4,116 million, compared with $7,647 million in the previous year.
"The strength of our full-year results across so many parts of the business was really encouraging. We had a solid net income, although lower than last year because of our pension remeasurement. We achieved the second-best Company adjusted pre-tax profit. Auto operating margin and Auto operating cash flow, we also delivered an improved combined profit at our business units outside North America, and ended the year with a robust balance sheet. In addition, we're pleased to have distributed $3.5 billion to Shareholder's last year, with a plan to provide another $2.8 billion in 2017." Bob Shanks executive vice president & CFO.
Operating cash flow improves
Ford Motor Company has generated cash of $19,792 million from operating activities during the year, up 22.40 percent or $3,622 million, when compared with the last year.
The company has spent $25,352 million cash to meet investing activities during the year as against cash outgo of $26,162 million in the last year.
Cash flow from financing activities was $7,458 million for the year, down 47.93 percent or $6,864 million, when compared with the last year.
Cash and cash equivalents stood at $15,905 million as on Dec. 31, 2016, up 11.44 percent or $1,633 million from $14,272 million on Dec. 31, 2015.
Debt moves up
Ford Motor Company has witnessed an increase in total debt over the last one year. It stood at $142,970 million as on Dec. 31, 2016, up 7.61 percent or $10,116 million from $132,854 million on Dec. 31, 2015. Total debt was 60.08 percent of total assets as on Dec. 31, 2016, compared with 59.07 percent on Dec. 31, 2015. Debt to equity ratio was at 4.90 as on Dec. 31, 2016, up from 4.64 as on Dec. 31, 2015. Interest coverage ratio deteriorated to 4.60 for the year from 9.89 for the same period last year.
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