Ford Motor Company (F)’s Hidden Debt Problem

One opportunity for that cash could be in initiating a share buyback plan to undo some of the share dilution Ford has witnessed over the years. That cash could be used to increase the dividend to shareholders, or simply to pushed into research and development to continue its success in the U.S. market or speed up its progress in China – all worthy situations for billions of extra dollars.

Bottom line
As with any large company and public stock, there are many things hanging over Ford’s share price. That’s what I love about owning Ford; I have full faith in its management to tackle these problems and solve them one at a time, rewarding long-term shareholders who witness the improved profitability. Ford is aiming for a fully funded pension by mid-decade. That’s the same year that management plans to be breaking even in Europe – two developments that could vastly improve Ford’s bottom line profitability and cash flow.

The article Ford’s Hidden Debt Problem originally appeared on Fool.com and is written by Daniel Miller.

Fool contributor Daniel Miller owns shares of Ford. The Motley Fool recommends Ford. The Motley Fool owns shares of Ford.

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