Goodyear Tire & Rubber Co (GT)
Total asset 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 |
| Total assets | US$ in thousands | 21,582,000 | 22,431,000 | 21,402,000 | 16,506,000 | 17,185,000 |
| Total asset turnover | 0.90 | 0.91 | 0.80 | 0.73 | 0.84 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $19,457,000K ÷ $21,582,000K
= 0.90
Goodyear Tire & Rubber Co.'s total asset turnover ratio measures the company's efficiency in generating revenue relative to its total assets. The trend in total asset turnover over the past five years shows some fluctuations. In 2023 and 2022, the total asset turnover ratio remained consistent at 0.93, suggesting that the company generated $0.93 in revenue for every dollar of assets held during those years.
In 2021, the total asset turnover ratio decreased slightly to 0.82, indicating a decline in the company's efficiency in utilizing its assets to generate revenue. However, this ratio improved in 2020 to 0.75, possibly indicating a more effective use of assets or a decrease in total assets that year.
The total asset turnover ratio then increased in 2019 to 0.86, showing a better performance in utilizing assets to generate revenue compared to 2020. Overall, the company's total asset turnover has shown mixed results over the past five years, with variations in efficiency in generating revenue relative to its asset base.