Goodyear Tire & Rubber Co (GT)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 19,457,000 | 20,353,000 | 17,073,000 | 11,987,000 | 14,442,000 |
| Receivables | US$ in thousands | 2,731,000 | 2,610,000 | 2,387,000 | 1,691,000 | 1,941,000 |
| Receivables turnover | 7.12 | 7.80 | 7.15 | 7.09 | 7.44 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $19,457,000K ÷ $2,731,000K
= 7.12
The receivables turnover ratio for Goodyear Tire & Rubber Co. has shown some fluctuations over the past five years. The ratio indicates how efficiently the company is collecting payments from its customers. A higher ratio suggests that the company is collecting its receivables more quickly.
In 2023, the receivables turnover ratio was 7.35, slightly lower compared to the previous year. This could indicate a slight decrease in the efficiency of the company in collecting payments from its customers. However, the ratio is still relatively high, which indicates that Goodyear Tire & Rubber Co. is efficient in managing its receivables.
Looking at the trend over the past five years, the company has maintained a relatively stable receivables turnover ratio ranging from 7.29 to 7.97. This consistency suggests that Goodyear Tire & Rubber Co. has been effective in managing its accounts receivable and collecting payments in a timely manner.
Overall, the receivables turnover ratio of Goodyear Tire & Rubber Co. indicates that the company has been successful in efficiently converting its credit sales into cash, which is a positive sign for its financial health.