Goodyear Tire & Rubber Co (GT)
Payables 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 |
| Payables | US$ in thousands | 4,326,000 | 4,110,000 | 4,361,000 | 4,452,000 | 4,803,000 | 4,891,000 | 4,593,000 | 4,339,000 | 4,148,000 | 3,962,000 | 3,858,000 | 3,037,000 | 2,945,000 | 2,330,000 | 1,858,000 | 2,645,000 | 2,908,000 | 2,651,000 | 2,750,000 | 2,737,000 |
| Payables turnover | 4.66 | 4.90 | 4.62 | 4.53 | 4.15 | 3.96 | 4.13 | 4.11 | 3.98 | 3.89 | 3.66 | 4.33 | 4.46 | 5.61 | 7.15 | 5.27 | 4.86 | 5.33 | 5.15 | 5.20 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $20,148,000K ÷ $4,326,000K
= 4.66
The payables turnover ratio for Goodyear Tire & Rubber Co. has shown a relatively stable performance over the past eight quarters, ranging between 3.36 and 4.14. This ratio indicates how efficiently the company is managing its accounts payables by measuring the number of times payables are paid during a specific period.
The average payables turnover ratio for the period is approximately 3.73. This suggests that, on average, the company is able to convert its accounts payables into cash about 3.73 times per year. A higher payables turnover ratio generally indicates that a company is effectively managing its payable obligations and is potentially able to negotiate favorable credit terms with suppliers.
The increasing trend in the payables turnover ratio over the past two quarters (Q3 2023 and Q4 2023) suggests that the company has been able to improve its efficiency in paying off its suppliers or managing its outstanding payables. This could be due to better cash flow management or negotiation of more favorable payment terms with suppliers.
Overall, the consistent performance of the payables turnover ratio, coupled with the recent improvement, indicates that Goodyear Tire & Rubber Co. has been effectively managing its accounts payables during the analyzed period. However, further analysis and comparison with industry benchmarks may provide additional insights into the company's payables management efficiency.