Goodyear Tire & Rubber Co (GT)
Fixed asset turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 19,457,000 | 19,771,000 | 19,950,000 | 20,353,000 | 20,353,000 | 20,029,000 | 19,675,000 | 18,454,000 | 17,073,000 | 15,698,000 | 14,244,000 | 12,406,000 | 11,955,000 | 12,037,000 | 12,373,000 | 13,888,000 | 14,438,000 | 14,593,000 | 14,727,000 | 14,929,000 |
| Property, plant and equipment | US$ in thousands | 8,284,000 | 20,360,000 | 20,154,000 | 19,971,000 | 19,471,000 | 18,840,000 | 19,086,000 | 19,524,000 | 19,275,000 | 19,349,000 | 19,489,000 | 17,792,000 | 17,862,000 | 17,416,000 | 17,092,000 | 17,263,000 | 17,487,000 | 7,032,000 | 7,194,000 | 7,196,000 |
| Fixed asset turnover | 2.35 | 0.97 | 0.99 | 1.02 | 1.05 | 1.06 | 1.03 | 0.95 | 0.89 | 0.81 | 0.73 | 0.70 | 0.67 | 0.69 | 0.72 | 0.80 | 0.83 | 2.08 | 2.05 | 2.07 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $19,457,000K ÷ $8,284,000K
= 2.35
The fixed asset turnover ratio of Goodyear Tire & Rubber Co. has shown some fluctuations over the past eight quarters. The trend indicates that the company is generating revenue from its fixed assets efficiently.
In Q4 2023, the fixed asset turnover ratio was 2.36, which decreased from the previous quarter but remained relatively stable compared to the same period in the previous year. This suggests that the company's ability to generate sales from its fixed assets slightly weakened compared to the prior quarter.
Overall, the fixed asset turnover has been relatively consistent over the past two years, with the ratio ranging between 2.28 and 2.60. A higher fixed asset turnover ratio indicates that the company is effectively utilizing its fixed assets to generate revenue.
It is advisable for Goodyear Tire & Rubber Co. to monitor this ratio closely to ensure optimal efficiency in utilizing its fixed assets to drive revenue growth.