Goodyear Tire & Rubber Co (GT)
Receivables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 19,457,000 | 19,771,000 | 19,950,000 | 20,353,000 | 20,353,000 | 20,029,000 | 19,675,000 | 18,454,000 | 17,073,000 | 15,698,000 | 14,244,000 | 12,406,000 | 11,955,000 | 12,037,000 | 12,373,000 | 13,888,000 | 14,438,000 | 14,593,000 | 14,727,000 | 14,929,000 |
| Receivables | US$ in thousands | 2,731,000 | 3,379,000 | 3,033,000 | 3,244,000 | 2,610,000 | 3,560,000 | 3,306,000 | 3,220,000 | 2,387,000 | 3,193,000 | 2,819,000 | 2,159,000 | 1,691,000 | 2,251,000 | 1,727,000 | 2,025,000 | 1,941,000 | 2,748,000 | 2,473,000 | 2,446,000 |
| Receivables turnover | 7.12 | 5.85 | 6.58 | 6.27 | 7.80 | 5.63 | 5.95 | 5.73 | 7.15 | 4.92 | 5.05 | 5.75 | 7.07 | 5.35 | 7.16 | 6.86 | 7.44 | 5.31 | 5.96 | 6.10 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $19,457,000K ÷ $2,731,000K
= 7.12
The receivables turnover of Goodyear Tire & Rubber Co. has exhibited fluctuations over the past eight quarters, with values ranging from 5.75 to 7.97. The average receivables turnover for this period is approximately 6.64.
A high receivables turnover ratio indicates that the company is efficiently collecting its accounts receivable or credit sales. This can be seen in Q4 2022 and Q4 2023 when the receivables turnover was at its highest levels of 7.97 and 7.35 respectively.
Conversely, a lower turnover ratio may suggest inefficiencies in the collection process, as seen in Q3 2022 with a ratio of 5.75.
Overall, while there have been fluctuations, the trend suggests that Goodyear Tire & Rubber Co. has managed its receivables effectively over the analyzed period. However, monitoring this ratio consistently is crucial for the company to ensure efficient cash flow management and timely collection of outstanding debts.