Goodyear Tire & Rubber Co (GT)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 7,650,000 | 8,665,000 | 7,331,000 | 5,620,000 | 5,934,000 |
| Total current liabilities | US$ in thousands | 7,147,000 | 7,140,000 | 6,612,000 | 5,106,000 | 5,287,000 |
| Current ratio | 1.07 | 1.21 | 1.11 | 1.10 | 1.12 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $7,650,000K ÷ $7,147,000K
= 1.07
The current ratio of Goodyear Tire & Rubber Co. has fluctuated over the past five years. In 2023, the current ratio stands at 1.07, which indicates that the company may have slightly less current assets relative to its current liabilities compared to the previous year. This could imply potential liquidity constraints if current liabilities come due all at once.
Throughout the period from 2019 to 2023, the company's current ratio has generally been above 1, suggesting that Goodyear Tire & Rubber Co. has typically had sufficient current assets to cover its short-term liabilities. However, the downward trend in the current ratio from 2022 to 2023 may warrant further investigation into the company's working capital management and ability to meet its short-term obligations in a timely manner.