The Balance Sheet, and the Lending BookNarrow moat

Ferrari (RACE) — moat facet

A €63 billion company sits on €9.6 billion of assets, a sixth of which is lending to its own customers.

A €63 billion company with €9.6 billion of assets, a sixth of which is lending to its own customers.

The balance sheet behind a €63bn company (€ M, FY2025)Total assets€9,628MFinancing receivables€1,613MProperty, plant & equipment€2,058MInventories€1,114MCash€1,468MTotal equity€3,915MA sixth of the asset base is lending to Ferrari's own customers.
A brand that happens to own a factory: €9.6 billion of assets producing €1.6 billion of profit, and €1.6 billion of it is a loan book.

Ferrari's balance sheet at the end of 2025: total assets €9,628 million, of which property, plant and equipment €2,058 million, intangibles €1,638 million, goodwill €785 million, inventories €1,114 million, cash €1,468 million — and €1,613 million of receivables from financing activities, the captive book that finances clients and dealers.1 Total equity was €3,915 million against debt of €2,884 million.2

Two things follow. First, the returns: NOPAT of roughly €1,635 million on equity plus debt less cash of about €5,331 million is around 30.7%, against a cost of capital nearer 8%.3 Strip out the financing receivables — which are a service, not operating capital — and the figure is materially higher.

Second, the leverage is nominal. Net industrial debt was €131 million at June 2026, after returning more than €800 million to shareholders in a single quarter.4 On roughly €1.5 billion of annual industrial free cash flow, that is a rounding error.

The reason the balance sheet is small is the business model: clients specify and commit long before delivery, so working capital is negligible, and there is no dealer inventory to finance.

Watch net industrial debt against annual free cash flow. Anything approaching a year's worth would signal a change in policy.

Moat trajectory: Holding steady

Total assets of €9.6bn support €7.1bn of revenue and €1.6bn of profit. The financing book has grown roughly with the business, not ahead of it.

The number that tests this moat
Reported
Total assets
€9,628M, supporting a €63bn market value

A brand that happens to own a factory. Property, plant and equipment is €2,058M; €1,613M of the balance sheet is receivables from financing activities — lending to Ferrari's own customers — which is genuine credit exposure to people whose wealth correlates with the conditions that also drive demand. Watch the financing receivable balance against revenue: growing materially faster would mean growth is being bought with the balance sheet.

Source: Ferrari Form 20-F, FY2025 ↗
⚠ Threats to the moat
⚠ THREAT 01
Credit Risk to People Who Buy Ferraris
The loan book and the order book are exposed to the same people at the same time.
References
  1. Moat Explorer calcFerrari's balance sheet at the end of 2025: total assets €9,628 million, of which property, plant and equipment €2,058 million, intangibles €1,638 million, goodwill €785 million, inventories €1,114 million, cash €1,468 million — and €1,613 million of receivables from financing activities, the captive book that finances clients and dealers. Total equity was €3,915 million against debt of €2,884...
    Ferrari N.V., Form 20-F FY2025 — consolidated income statement and statement of financial position. Net revenues EUR7,146M; cost of sales EUR3,453M (48.3% of revenue); selling, general and administrative costs EUR642M (9.0%); research and development costs EUR919M (12.9%); EBIT EUR2,110M, a 29.5% margin; EBITDA EUR2,772M, 38.8%; profit before taxes EUR2,064M; income tax expense EUR464M, an effective rate of 22.5%; net profit EUR1,600M, 22.4% of revenue, against EUR1,526M and EUR1,257M in the two prior years. Diluted earnings per share EUR8.96 against EUR8.46 and EUR6.90, on weighted average diluted shares of 178,321 thousand against 179,992 thousand and 181,511 thousand. Total assets EUR9,628M; property, plant and equipment EUR2,058M; intangible assets EUR1,638M including goodwill of EUR785M; inventories EUR1,114M; receivables from financing activities EUR1,613M; cash and cash equivalents EUR1,468M; total equity EUR3,915M; debt EUR2,884M; trade payables EUR841M. In 2025 Ferrari paid dividends of EUR534M and repurchased EUR785M of its own shares. Historic net revenues run EUR3,105M (2016), EUR3,417M, EUR3,420M, EUR3,766M, EUR3,460M (2020), EUR4,271M, EUR5,095M, EUR5,970M, EUR6,677M and EUR7,146M (2025); net profit over the same years runs EUR400M, EUR537M, EUR787M, EUR699M, EUR609M, EUR833M, EUR939M, EUR1,257M, EUR1,526M and EUR1,600M. — FY2025 · publ. 2026-02 · source ↗
  2. ReportedTotal equity was €3,915 million against debt of €2,884 million. Two things follow.
    Ferrari N.V., Form 20-F FY2025 — consolidated income statement and statement of financial position. Net revenues EUR7,146M; cost of sales EUR3,453M (48.3% of revenue); selling, general and administrative costs EUR642M (9.0%); research and development costs EUR919M (12.9%); EBIT EUR2,110M, a 29.5% margin; EBITDA EUR2,772M, 38.8%; profit before taxes EUR2,064M; income tax expense EUR464M, an effective rate of 22.5%; net profit EUR1,600M, 22.4% of revenue, against EUR1,526M and EUR1,257M in the two prior years. Diluted earnings per share EUR8.96 against EUR8.46 and EUR6.90, on weighted average diluted shares of 178,321 thousand against 179,992 thousand and 181,511 thousand. Total assets EUR9,628M; property, plant and equipment EUR2,058M; intangible assets EUR1,638M including goodwill of EUR785M; inventories EUR1,114M; receivables from financing activities EUR1,613M; cash and cash equivalents EUR1,468M; total equity EUR3,915M; debt EUR2,884M; trade payables EUR841M. In 2025 Ferrari paid dividends of EUR534M and repurchased EUR785M of its own shares. Historic net revenues run EUR3,105M (2016), EUR3,417M, EUR3,420M, EUR3,766M, EUR3,460M (2020), EUR4,271M, EUR5,095M, EUR5,970M, EUR6,677M and EUR7,146M (2025); net profit over the same years runs EUR400M, EUR537M, EUR787M, EUR699M, EUR609M, EUR833M, EUR939M, EUR1,257M, EUR1,526M and EUR1,600M. — FY2025 · publ. 2026-02 · source ↗
  3. Moat Explorer calcFirst, the returns: NOPAT of roughly €1,635 million on equity plus debt less cash of about €5,331 million is around 30.7%, against a cost of capital nearer 8%. Strip out the financing receivables — which are a service, not operating capital — and the figure is materially higher.
    Ferrari N.V., Form 20-F FY2025 — consolidated income statement and statement of financial position. Net revenues EUR7,146M; cost of sales EUR3,453M (48.3% of revenue); selling, general and administrative costs EUR642M (9.0%); research and development costs EUR919M (12.9%); EBIT EUR2,110M, a 29.5% margin; EBITDA EUR2,772M, 38.8%; profit before taxes EUR2,064M; income tax expense EUR464M, an effective rate of 22.5%; net profit EUR1,600M, 22.4% of revenue, against EUR1,526M and EUR1,257M in the two prior years. Diluted earnings per share EUR8.96 against EUR8.46 and EUR6.90, on weighted average diluted shares of 178,321 thousand against 179,992 thousand and 181,511 thousand. Total assets EUR9,628M; property, plant and equipment EUR2,058M; intangible assets EUR1,638M including goodwill of EUR785M; inventories EUR1,114M; receivables from financing activities EUR1,613M; cash and cash equivalents EUR1,468M; total equity EUR3,915M; debt EUR2,884M; trade payables EUR841M. In 2025 Ferrari paid dividends of EUR534M and repurchased EUR785M of its own shares. Historic net revenues run EUR3,105M (2016), EUR3,417M, EUR3,420M, EUR3,766M, EUR3,460M (2020), EUR4,271M, EUR5,095M, EUR5,970M, EUR6,677M and EUR7,146M (2025); net profit over the same years runs EUR400M, EUR537M, EUR787M, EUR699M, EUR609M, EUR833M, EUR939M, EUR1,257M, EUR1,526M and EUR1,600M. — FY2025 · publ. 2026-02 · source ↗
  4. ReportedNet industrial debt was €131 million at June 2026, after returning more than €800 million to shareholders in a single quarter. On roughly €1.5 billion of annual industrial free cash flow, that is a rounding error.
    Ferrari N.V., second-quarter 2026 results press release (filed with the SEC as an exhibit to Form 6-K). Net revenues of EUR1,938M, up 8% and up 11% at constant currency; EBIT of EUR605M at a 31.2% margin, up 10% and up 16% at constant currency; EBITDA of EUR755M at a 39.0% margin; net profit of EUR463M; diluted earnings per share of EUR2.62; industrial free cash flow of EUR276M, up 39%. For the first half, net revenues of EUR3,786M (up 6%), EBIT of EUR1,153M at a 30.5% margin, net profit of EUR876M, diluted EPS of EUR4.95 and industrial free cash flow of EUR929M (up 14%). Second-quarter shipments totalled 3,366 cars against 3,494, with EMEA up 210 to 1,856, the Americas down 206 to 787, Greater China down 89 to 185 and the rest of Asia-Pacific down 43 to 538; first-half shipments were 6,802 against 7,087, with EMEA 3,314 (down 33), the Americas 1,817 (down 198), Greater China 440 (down 71) and the rest of Asia-Pacific 1,231 (up 17). Results were attributed to personalisations and mix, with deliveries of the 12Cilindri, 12Cilindri Spider, Purosangue and 296 Speciale families rising while the 296 GTS, Roma Spider and SF90 XX families phased out and the Amalfi and 849 Testarossa ramped; racing revenue rose on sponsorship and on the supply of power units to other Formula 1 teams. Full-year 2026 guidance was raised to net revenues of about EUR7.60bn from about EUR7.50bn, adjusted EBITDA of at least EUR2.97bn (at least 39.0% of revenue), adjusted EBIT of at least EUR2.26bn (at least 29.5%), adjusted diluted EPS of at least EUR9.68 and industrial free cash flow of at least EUR1.55bn, on stronger personalizations than initially expected and lower than anticipated currency headwinds, net of hedges. Chief executive Benedetto Vigna stated that the order book entirely covers 2027. More than EUR800M was returned during the quarter — a EUR599M dividend instalment and EUR209M of share repurchases — taking the company from net industrial cash of EUR388M at 31 March 2026 to net industrial debt of EUR131M at 30 June 2026. Trailing twelve-month figures to June 2026 are net revenues of EUR7,353M, net profit of EUR1,639M and diluted EPS of EUR9.23. — Q2 2026 · publ. 2026-07 · source ↗
Sources
Generated September 23, 2026