Goodyear Tire & Rubber Co (GT)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 18,878,000 | 20,066,000 | 20,805,000 | 17,478,000 | 12,321,000 |
| Total current assets | US$ in thousands | 7,632,000 | 7,650,000 | 8,665,000 | 7,331,000 | 5,620,000 |
| Total current liabilities | US$ in thousands | 7,337,000 | 7,147,000 | 7,140,000 | 6,612,000 | 5,106,000 |
| Working capital turnover | 63.99 | 39.89 | 13.64 | 24.31 | 23.97 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $18,878,000K ÷ ($7,632,000K – $7,337,000K)
= 63.99
The working capital turnover of Goodyear Tire & Rubber Co has shown fluctuating trends over the years based on the provided data. In 2020 and 2021, the company's working capital turnover ratio was 23.97 and 24.31, respectively, indicating that the company was able to convert its working capital into revenue approximately 24 times during those years.
However, a significant decrease was observed in 2022, where the working capital turnover dropped to 13.64. This suggests that Goodyear may have faced challenges in efficiently utilizing its working capital to generate revenue during that period.
The subsequent years, 2023 and 2024, witnessed a substantial improvement in the working capital turnover ratio, with values of 39.89 and 63.99, respectively. This indicates that Goodyear significantly enhanced its efficiency in utilizing working capital to generate revenue during these years, leading to a higher turnover rate compared to the prior years.
Overall, the varying trends in the working capital turnover of Goodyear Tire & Rubber Co highlight the company's ability to manage its working capital effectively in different years and optimize the utilization of resources to generate revenue.