Goodyear Tire & Rubber Co (GT)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 86.51 | 81.52 | 98.41 | 95.81 | 76.02 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 86.51 | 81.52 | 98.41 | 95.81 | 76.02 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 86.51 + — – —
= 86.51
The cash conversion cycle of Goodyear Tire & Rubber Co has shown fluctuations over the past five years. In December 2020, the cash conversion cycle stood at 76.02 days, indicating that it took approximately 76 days for the company to convert its investments in inventory into cash receipts from customers.
By December 2021, the cash conversion cycle increased to 95.81 days, signifying a longer duration for the company to recover cash from its operating cycle. This trend continued into 2022, with the cash conversion cycle growing further to 98.41 days.
However, in December 2023, there was a slight improvement as the cash conversion cycle decreased to 81.52 days. This could suggest that the company managed its inventory, receivables, and payables more efficiently during that period.
Finally, by December 2024, the cash conversion cycle increased to 86.51 days, indicating that it took slightly longer for the company to convert its investments in inventory into cash receipts compared to the previous year.
Overall, Goodyear Tire & Rubber Co's cash conversion cycle has experienced fluctuations, with periods of both lengthening and shortening cycles. It is essential for the company to monitor and manage its working capital effectively to improve cash flow efficiency.