Ford Motor Beta vs. Retained Earnings

F -- USA Stock  

USD 10.87  0.31  2.94%

The Drivers Module shows relationships between Ford Motor's most relevant fundamental drivers and provides multiple suggestions of what could possibly affect the performance of Ford Motor Company over time as well as its relative position and ranking within its peers. Additionally see Investing Opportunities

Ford Motor Retained Earnings vs. Beta Fundamental Analysis

Ford Motor Company is rated below average in beta category among related companies. It is rated below average in retained earnings category among related companies reporting about  18,177,858,439  of Retained Earnings per Beta.
Beta is one of the most important measures of equity market volatility. Beta can be thought of as asset elasticity or sensitivity to market. In other words, it is a number that shows the relationship of financial instrument to the financial market in which this instrument is traded. For example if Beta of equity is 2, it will be expected to significantly outperform market when market is going up and significantly underperform when market is going down. Similarly, Beta of 1 indicates that an asset and market will generate similar returns during over time.
Ford Motor 
Beta 
 = 
Covariance 
Variance 
=
0.87
In a nutshell, Beta is a measure of individual stock risk relative to the overall volatility of the stock market. and is calculated based on very sound finance theory - Capital Assets Pricing Model (CAPM).However, since Beta is calculated based on historical price movements it may not predict how a firm's stock is going to perform in the future.
Retained Earnings is a balance sheet account that refers to the portion of company income that is retained by the firm. In other words it is a part of earnings that is not paid out as dividends or otherwise distributed to owners. Retained Earnings are calculated by adding net income to last period retained earnings and subtracting any dividends paid to owners.
Ford Motor 
Retained Earnings 
 = 
Beginning RE + Income 
Dividends 
=
15.81 B
Retained Earnings shows how the firm utilizes its profits over time. In simple terms, investors can think of retained earnings as the amount of profit the company has reinvested in the business since its inceptions. However the methodology to make a decision over how much profit to retain is different between companies in different industries. For example growing industries tend to retain more of their earnings than more matured industries as they need more assets investment to sustain their growth.

Ford Motor Retained Earnings Comparison

  Retained Earnings 
      Ford Motor Comparables 
Ford Motor is rated below average in retained earnings category among related companies.
  Beta 
      Ford Motor Comparables 
Ford Motor is rated below average in beta category among related companies.

Beta Analysis

Ford Motor returns are very sensitive to returns on the market. As market goes up or down, Ford Motor is expected to follow.
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