Goodyear Tire & Rubber Co (GT)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 810,000 | 902,000 | 1,227,000 | 1,088,000 | 1,539,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 7,337,000 | 7,147,000 | 7,140,000 | 6,612,000 | 5,106,000 |
| Cash ratio | 0.11 | 0.13 | 0.17 | 0.16 | 0.30 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($810,000K
+ $—K)
÷ $7,337,000K
= 0.11
The cash ratio of Goodyear Tire & Rubber Co has shown a decreasing trend over the past five years based on the provided data. The ratio declined from 0.30 on December 31, 2020, to 0.11 on December 31, 2024. A decreasing cash ratio may indicate that the company has a lower proportion of cash and cash equivalents to cover its current liabilities in the short term. This trend suggests that Goodyear may have been utilizing its cash reserves for investments, acquisitions, or other activities rather than holding significant amounts of cash on hand. It is essential for investors and stakeholders to monitor this ratio closely to ensure that the company maintains an adequate level of liquidity to meet its short-term obligations.