Goodyear Tire & Rubber Co (GT)
Inventory 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 20,148,000 | 20,133,000 | 20,137,000 | 20,149,000 | 19,925,000 | 19,387,000 | 18,975,000 | 17,814,000 | 16,514,000 | 15,403,000 | 14,131,000 | 13,154,000 | 13,127,000 | 13,080,000 | 13,279,000 | 13,950,000 | 14,141,000 | 14,132,000 | 14,157,000 | 14,244,000 |
| Inventory | US$ in thousands | 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 | 2,851,000 | 2,965,000 | 3,091,000 | 2,940,000 |
| Inventory turnover | 5.45 | 5.08 | 4.62 | 4.43 | 4.36 | 3.99 | 4.32 | 4.42 | 4.59 | 4.47 | 4.26 | 5.58 | 6.10 | 6.08 | 5.37 | 4.78 | 4.96 | 4.77 | 4.58 | 4.84 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $20,148,000K ÷ $3,698,000K
= 5.45
The inventory turnover ratio of Goodyear Tire & Rubber Co. has shown a general increasing trend over the past eight quarters, indicating an improvement in the efficiency of managing inventory. In Q4 2023, the inventory turnover was 4.48, the highest among the quarters analyzed, suggesting that the company generated sales equivalent to 4.48 times its average inventory balance during the period.
The increasing trend in inventory turnover implies that the company has been able to sell its inventory at a faster pace in recent quarters, which could be indicative of effective inventory management and demand for its products. A higher inventory turnover ratio generally signifies that the company is efficiently managing its inventory levels, reducing the risk of obsolete or expired inventory, and potentially lowering storage costs.
Overall, the upward trend in Goodyear's inventory turnover ratio reflects positively on the company's operational efficiency and ability to convert its inventory into sales effectively. It is essential for investors and stakeholders to continue monitoring this ratio to assess the company's ongoing performance and management of its inventory levels.