Goodyear Tire & Rubber Co (GT)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 7,632,000 | 7,650,000 | 8,665,000 | 7,331,000 | 5,620,000 |
| Total current liabilities | US$ in thousands | 7,337,000 | 7,147,000 | 7,140,000 | 6,612,000 | 5,106,000 |
| Current ratio | 1.04 | 1.07 | 1.21 | 1.11 | 1.10 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $7,632,000K ÷ $7,337,000K
= 1.04
The current ratio of Goodyear Tire & Rubber Co has shown variability over the past five years. It increased from 1.10 in December 31, 2020, to 1.21 in December 31, 2022, indicating an improvement in the company's ability to cover its short-term obligations with its current assets. However, there was a slight decline in the current ratio to 1.07 in December 31, 2023, and further down to 1.04 in December 31, 2024.
The current ratio values above 1 indicate that the company has more current assets than current liabilities, which is generally considered a positive sign of liquidity. A current ratio of over 1 means the company should be able to meet its short-term obligations using its current assets if needed.
While the current ratio fluctuated over the years, it is essential to assess the trend in conjunction with other financial ratios and qualitative factors to get a comprehensive understanding of Goodyear Tire & Rubber Co's liquidity position and overall financial health.