ACCT 306 Week 6 Course Project; Ford Motor Company Analysis of Long-Term Assets and Liabilities

$66.9 $66.9 $0.0 $80.00 $60.00 ($36.3) ($33.5) $40.00 ($2.8) $20.00 $37.3 $41.9 ($4.6) $0.00 ($20.00) ($40.00) Net PP&E decreased $4.6 billion, ($60.00) primarily due to higher depreciation exceeding capital additions. Goss PP&E – Accumulate Continued Capital PP&E represents Ford’s long Remained d investing in expenditure used in the production relatively depreciation manufacturi s – support and flat – increased ng facilities future vehicles and services. and growth and Thes by $2.8 equipment. efficiency. essential to supporting billion. ope future growth opportunities $7.3 $7.1 $0.2 Manufacturi Machinery Information Other 2.8% ng Plants & Technology Assets 45% Equipment 15% Depreciation expenses increased $0.2 billion, or 2.8%, 30% 10% largely due to higher investments in PP&E to support future company growth. Increased capital 2024 2025 investments in new and expanded facilities. Higher predication equipment additions to support new vehicle launches Continued investment in technology and automation to drive efficiency. $2.88 $2.87 $0.01 $1.64 $1.51 $7.48 $7.62 $0.13 ($0.14 ) $0.97 $0.92 $0.00 • Goodwill mostly arises from business $0.66 $0.66 combinations, most recently the $0.05 acquisition of Rivian Automotive in $0.15 $0.13 2021. $0.02 • The decrease of $0.14 billion is $6.30 $6.09 $0.21 primarily due to foreign currency translation and • Goodwill is tested for changes in reporting unit ca impair amounts. least annually, or more • frequ indicators of impairment exi No goodwill impairment char recorded in 2025 or 2024 • Interest Expense: Decreased primarily due to lower $3.9 $4.6 ($0.7 average debt balances, favorable interest rates (15.2%) and reduced borrowings. • Operating Lease Expense: Decrease driven by expiring $1.9 $2.0 ) leases and ongoing cost management ($0.1) (5.0%) initiatives. • Total Impact: Combined decrease reflects $5.8 (12.1 disciplined $6.6 ($0.8) debt management and continued focus on %) operational efficiency and expense control. • Cost Efficiency: Lower interest and lease expensed strengthen cost structure $1.24 $1.07 $0.99 $0.9 income and profit 4 • Financial Flexibility: Reduced intere enhance cash flow $0.52 $0.4 $0.48 availability. $0.47 • Balance Sheet Strenght: Lower 8 $1.4 deb $1.5 $1.41 $1.76 5 7 improce leverage metrics and supp credit profile. Reference s • Ford Motor Company. (2026). Annual Report on Form 10-K for the fiscal year ended December 31, 2025. U.S. Securities and Exchange Commission. • Ford Motor Company. (2026). Notes to Financial Statements: Property, Intangible Assets, Leases, and Debt. • Kieso, D. E., Weygandt, J. J., & Warfield, Intermediate Accounting (latest edition). T. D. • OpenAI. (2026). AI-generated images used throug presentation [AI-generated images]. ChatGPT. https://chatgpt.com