Goodyear Tire & Rubber Co (GT)
Working capital turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 18,878,000 | 19,047,000 | 19,365,000 | 19,662,000 | 20,066,000 | 20,324,000 | 20,493,000 | 20,838,000 | 20,805,000 | 20,485,000 | 20,108,000 | 18,875,000 | 17,478,000 | 16,080,000 | 14,611,000 | 12,776,000 | 12,321,000 | 12,378,000 | 12,715,000 | 14,203,000 |
| Total current assets | US$ in thousands | 7,632,000 | 8,901,000 | 8,204,000 | 8,062,000 | 7,650,000 | 8,677,000 | 8,858,000 | 9,213,000 | 8,665,000 | 9,951,000 | 9,223,000 | 8,563,000 | 7,331,000 | 8,121,000 | 7,519,000 | 5,948,000 | 5,620,000 | 5,695,000 | 5,413,000 | 6,173,000 |
| Total current liabilities | US$ in thousands | 7,337,000 | 7,798,000 | 7,709,000 | 7,020,000 | 7,147,000 | 6,694,000 | 6,940,000 | 6,984,000 | 7,140,000 | 7,459,000 | 7,121,000 | 6,945,000 | 6,612,000 | 6,893,000 | 6,603,000 | 5,333,000 | 5,106,000 | 4,893,000 | 4,626,000 | 5,266,000 |
| 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 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $18,878,000K ÷ ($7,632,000K – $7,337,000K)
= 63.99
The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales revenue. A higher ratio indicates better utilization of working capital.
Analyzing the working capital turnover for Goodyear Tire & Rubber Co from March 2020 to December 2024, we observe fluctuations in the ratio over time. The ratio ranged from a high of 63.99 in December 2024 to a low of 8.22 in September 2022.
In the earlier periods, from March 2020 to June 2021, the ratio showed relatively stable and high values, indicating efficient management of working capital to generate sales. However, from September 2021 to June 2023, there was a notable decline in the ratio, suggesting a potential decrease in the company's ability to efficiently convert working capital into sales.
In the more recent periods, there were significant fluctuations in the ratio, with a sharp increase in December 2024 to 63.99. This surge might suggest a sudden improvement in the company's working capital efficiency in that quarter.
Overall, Goodyear Tire & Rubber Co's working capital turnover ratio has shown variability over the analyzed periods, indicating fluctuating efficiency in utilizing working capital to drive sales revenue. Additional analysis and further context would be needed to understand the underlying reasons for these fluctuations and their potential implications for the company's financial performance.