Ford Motor Co. (NYSE: F) stock has been on a tear over the past year, with share prices rising nearly 48%.  The only one of the Big Three automakers not to declare bankruptcy or accept a bailout from taxpayers, Ford has been a Wall Street darling — and its decision to cut an additional $3 billion in debt in the first quarter will make the company stronger.

But for investors, to quote Danny Ocean, “It’s always about the money.”  If you’re looking for sustained aggressive growth, Ford stock is not likely to continue the run to glory we’ve seen over the past year.  There’s no bad news, just old news.  The market has witnessed Ford’s rise out of the depths of the recession and the stock has risen like the proverbial Phoenix.

But Ford stock still has something left in the tank, even if the gains won’t be as impressive. And Ford’s next big rise will be based on the company’s fundamentals.

And that’s exactly how Ford wants it.

The company will take a hit on its first quarter earnings because of efforts to pay down another $3 billion in debt. If you’re keeping track, that’s in addition to the $14.5 billion Ford slashed in 2010. While that news doesn’t offer the kind of flash investors like to see,  here are four reasons why this short-term hit on earnings makes long-term sense for the company and its shareholders:

Reducing Interest Expense. Back in 2006, before the financial meltdown and recession, Ford borrowed some $23 billion — cash that helped it restructure its operations without filing for bankruptcy or accepting a bailout from the federal government like competitors General Motors (NYSE: GM) or Chrysler Group LLC.  But those loans came at a high price: Ford paid $1.8 billion in interest last year alone. The most recent $3 billion debt pay-down will shave $190 million off its interest payments, making the company fundamentally stronger in the long term.

Rising Out Of The Junk Bond Cellar. Reducing debt is key to strengthening Ford’s credit rating — a factor that will make it easier and less expensive for the company to raise investment capital.  Today, the company’s debt is rated at between two and three levels below investment grade — in other words, junk bonds. Paying down debt is a crucial way for Ford to shed its junk bond status.

Greater Focus On Core Business. Shrugging off a mountain of debt is bound to boost Ford’s efforts to enhance its core business.  A stronger credit rating means cheaper credit, enabling the company to more cost-effectively invest back into its manufacturing plants and business operations.  Examples of this strategy include the company’s new product launches — such as the first all-electric model Focus — and its commitment to the global C-car platform.

Stronger Competitive Position. Ford’s bold move to reduce debt and invest in new products and platforms is positioning it well for the long competitive road ahead.  The automaker started off strong last month by announcing 2010 net income of $6.6 billion — its highest earnings in more than 10 years and more than double its 2009 profit.  By investing in global car platforms, the company will be able to sell the same models in more markets, reducing its basic costs and focusing engineering expertise on designing hotter cars and trucks.

So while Ford paying down debt may not have the same measure of flash as explosive year-over-year sales growth, it is good news none the less for shareholders over the long term.

As of this writing, Susan J. Aluise did not own a stake in any of the stocks mentioned here.