Ford Motor Operating Margin vs. Retained Earnings

F -- USA Stock  

USD 10.56  0.26  2.40%

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Ford Motor Retained Earnings vs. Operating Margin Fundamental Analysis

Ford Motor Company is rated below average in operating margin category among related companies. It is rated below average in retained earnings category among related companies reporting about  1,923,933,922  of Retained Earnings per Operating Margin.
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
Ford Motor 
Operating Margin 
 = 
Operating Income 
Revenue 
X
100 
=
8.22 %
A good Operating Margin is required for a company to be able to pay for its fixed costs or pay out its debt which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against firm's competitors.
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.
  Operating Margin 
      Ford Motor Comparables 
Ford Motor is rated below average in operating margin category among related companies.
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