Goodyear Tire & Rubber Co (GT)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 810,000 | 905,000 | 852,000 | 954,000 | 902,000 | 1,002,000 | 1,049,000 | 1,082,000 | 1,227,000 | 1,243,000 | 1,248,000 | 1,053,000 | 1,088,000 | 1,187,000 | 1,030,000 | 1,223,000 | 1,539,000 | 1,057,000 | 1,006,000 | 971,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Cash ratio | 0.11 | 0.12 | 0.11 | 0.14 | 0.13 | 0.15 | 0.15 | 0.15 | 0.17 | 0.17 | 0.18 | 0.15 | 0.16 | 0.17 | 0.16 | 0.23 | 0.30 | 0.22 | 0.22 | 0.18 |
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 years, starting at 0.18 as of March 31, 2020, and declining to 0.11 as of December 31, 2024. This ratio indicates the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio is generally preferred as it signifies a stronger liquidity position.
The decreasing trend in the cash ratio may suggest that Goodyear Tire & Rubber Co is finding it more challenging to meet its short-term obligations solely with its available cash holdings over the years. This could potentially raise concerns about the company's liquidity position and its ability to manage unexpected expenses or financial difficulties in the future.
It is essential for the company to monitor its cash management closely and consider strategies to improve its liquidity position, such as increasing cash reserves, optimizing working capital management, or exploring alternative sources of short-term financing, to ensure it can meet its obligations effectively in the long run.