Goodyear Tire & Rubber Co (GT)
Cash ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 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 | 908,000 | 868,000 | 917,000 | 860,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 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 | 5,287,000 | 5,173,000 | 5,081,000 | 5,087,000 |
| Cash ratio | 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 | 0.17 | 0.17 | 0.18 | 0.17 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($902,000K
+ $—K)
÷ $7,147,000K
= 0.13
The cash ratio measures a company's ability to cover its short-term liabilities with its available cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations.
Analyzing Goodyear Tire & Rubber Co.'s cash ratios over the past eight quarters, we can observe a relatively consistent range between 0.17 to 0.21. This indicates that the company has maintained a stable level of liquidity relative to its current liabilities.
The average cash ratio for Goodyear Tire & Rubber Co. over these quarters is approximately 0.20. This suggests that, on average, the company holds $0.20 in cash and cash equivalents for every $1 of short-term liabilities.
The consistency in the cash ratio signals that Goodyear Tire & Rubber Co. has been able to manage its liquidity effectively, ensuring that it has enough cash on hand to cover its immediate financial obligations. However, it is essential to compare this ratio with industry benchmarks and competitor performance to gain a more comprehensive understanding of Goodyear's liquidity position.