Goodyear Tire & Rubber Co (GT)
Inventory turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 15,175,000 | 15,287,000 | 15,577,000 | 16,078,000 | 16,557,000 | 16,997,000 | 17,131,000 | 17,180,000 | 16,953,000 | 16,412,000 | 16,001,000 | 14,907,000 | 13,692,000 | 12,517,000 | 11,398,000 | 10,536,000 | 10,337,000 | 10,446,000 | 10,636,000 | 11,275,000 |
| Inventory | US$ in thousands | 3,597,000 | 3,812,000 | 4,048,000 | 3,831,000 | 3,698,000 | 3,964,000 | 4,360,000 | 4,553,000 | 4,571,000 | 4,861,000 | 4,389,000 | 4,026,000 | 3,594,000 | 3,443,000 | 3,314,000 | 2,359,000 | 2,153,000 | 2,152,000 | 2,474,000 | 2,919,000 |
| Inventory turnover | 4.22 | 4.01 | 3.85 | 4.20 | 4.48 | 4.29 | 3.93 | 3.77 | 3.71 | 3.38 | 3.65 | 3.70 | 3.81 | 3.64 | 3.44 | 4.47 | 4.80 | 4.85 | 4.30 | 3.86 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $15,175,000K ÷ $3,597,000K
= 4.22
The inventory turnover ratio of Goodyear Tire & Rubber Co has fluctuated over the past few years. The ratio measures how efficiently the company is managing its inventory by indicating how many times the company's inventory is sold and replaced over a certain period.
From March 31, 2020, to December 31, 2024, the inventory turnover ratio ranged between 3.38 and 4.85, showing variations in the company's inventory management practices. The highest ratio of 4.85 was recorded on September 30, 2020, indicating that the company sold and replaced its inventory almost 5 times during that period.
The ratio gradually declined from the peak in September 2020 to the lowest point of 3.38 on September 30, 2022, signifying a potential slowdown in sales relative to the level of inventory held. However, the ratio started to trend upwards again in the following quarters.
Overall, the inventory turnover ratio for Goodyear Tire & Rubber Co demonstrates some fluctuations over the period analyzed, which may be influenced by factors such as sales trends, inventory management efficiency, and market demand. It is essential for the company to monitor and manage its inventory effectively to ensure optimal utilization of resources and maintain healthy liquidity levels.