Goodyear Tire & Rubber Co (GT)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | 63.99 | 17.27 | 39.12 | 18.87 | 39.89 | 10.25 | 10.68 | 9.35 | 13.64 | 8.22 | 9.57 | 11.67 | 24.31 | 13.09 | 15.95 | 20.77 | 23.97 | 15.43 | 16.16 | 15.66 |
The analysis of Goodyear Tire & Rubber Co's activity ratios reveals the following trends:
1. Inventory Turnover: The inventory turnover ratio has been fluctuating over the years but generally trending downwards. It indicates that the company is taking longer to sell its inventory, which could be a concern as stagnant inventory ties up capital.
2. Receivables Turnover: The receivables turnover data is not available, which makes it difficult to assess how efficiently the company is collecting its accounts receivable. An absence of this information could indicate issues or changes in the company's credit policies or receivables management.
3. Payables Turnover: Similar to receivables turnover, payables turnover data is not provided, making it challenging to evaluate how long the company takes to pay its suppliers. Knowledge of this ratio would be crucial in understanding the company's payment behavior and supplier relationships.
4. Working Capital Turnover: The working capital turnover ratio has shown significant fluctuations, implying variations in how effectively the company is utilizing its working capital to generate sales. A higher turnover ratio typically indicates efficient utilization of resources.
Overall, the lack of data for receivables and payables turnover limits the comprehensive assessment of Goodyear Tire & Rubber Co's activity ratios. The trends observed in inventory turnover and working capital turnover highlight areas that may require further analysis or management attention to enhance operational efficiency and optimize working capital utilization.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 86.52 | 91.02 | 94.85 | 86.97 | 81.52 | 85.12 | 92.90 | 96.73 | 98.41 | 108.11 | 100.12 | 98.58 | 95.81 | 100.40 | 106.12 | 81.72 | 76.02 | 75.19 | 84.90 | 94.50 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
The Days of Inventory on Hand (DOH) for Goodyear Tire & Rubber Co have fluctuated over the years, ranging from 75.19 days to 108.11 days. A high DOH could indicate slow-moving inventory or overstocking, which may lead to increased holding costs and obsolescence risks. On the other hand, a low DOH may suggest efficient inventory management but could also indicate stockouts and potential lost sales.
Unfortunately, the data for Days of Sales Outstanding (DSO) and Number of Days of Payables are not available, making it challenging to assess the company's collection and payment practices. DSO measures how quickly the company can collect its accounts receivable, while the Number of Days of Payables indicates how long it takes the company to pay its suppliers.
Overall, monitoring and managing these activity ratios are crucial for optimizing working capital and ensuring the company operates efficiently. A balanced approach to inventory management, timely collection of receivables, and strategic payment practices can contribute to improved liquidity and profitability for Goodyear Tire & Rubber Co.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | — | — | — | — | — | — | 2.21 | — | 2.24 | 2.31 | 2.22 | 2.03 | 1.87 | 1.75 | 1.57 | 1.66 | 1.55 | 1.61 | 1.66 | 1.82 |
| Total asset turnover | 0.90 | 0.84 | 0.88 | 0.89 | 0.93 | 0.90 | 0.90 | 0.90 | 0.93 | 0.88 | 0.88 | 0.83 | 0.82 | 0.74 | 0.69 | 0.77 | 0.75 | 0.76 | 0.80 | 0.85 |
The fixed asset turnover ratio for Goodyear Tire & Rubber Co has shown an upward trend over the years, indicating an improvement in the company's efficiency in generating sales from its fixed assets. The ratio increased from 1.82 in March 2020 to 2.24 in December 2022, showing a consistent growth in this aspect.
On the other hand, the total asset turnover ratio has been fluctuating within a certain range. It started at 0.85 in March 2020, decreasing to 0.69 by June 2021, and then gradually increasing to 0.90 by March 2024. This indicates varying levels of effectiveness in utilizing the company's total assets to generate revenues.
Overall, the increasing trend in the fixed asset turnover ratio suggests that Goodyear Tire & Rubber Co has been efficiently utilizing its fixed assets to drive sales growth. However, the fluctuation in the total asset turnover ratio highlights the need for the company to focus on optimizing the utilization of its total assets to enhance overall efficiency in generating sales.