Goodyear Tire & Rubber Co (GT)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 7,632,000 | 8,901,000 | 8,204,000 | 8,062,000 | 7,650,000 | 8,677,000 | 8,858,000 | 9,213,000 | 8,665,000 | 9,951,000 | 9,223,000 | 8,563,000 | 7,331,000 | 8,121,000 | 7,519,000 | 5,948,000 | 5,620,000 | 5,695,000 | 5,413,000 | 6,173,000 |
| 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 |
| Current ratio | 1.04 | 1.14 | 1.06 | 1.15 | 1.07 | 1.30 | 1.28 | 1.32 | 1.21 | 1.33 | 1.30 | 1.23 | 1.11 | 1.18 | 1.14 | 1.12 | 1.10 | 1.16 | 1.17 | 1.17 |
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 fluctuated over the past few years, ranging from a low of 1.04 to a high of 1.33. The current ratio measures the company's ability to cover its short-term obligations with its current assets. A ratio above 1 indicates that the company has more current assets than current liabilities, which is generally considered a positive sign.
From March 31, 2020, to December 31, 2021, the current ratio remained relatively stable, hovering around the 1.1 to 1.2 range. However, there was a significant increase in the ratio in the following quarters, peaking at 1.33 on September 30, 2022. This improvement could indicate that the company effectively managed its current assets and liabilities during this period.
Subsequently, the current ratio dipped below 1.1 in the last quarter of 2023 and the first two quarters of 2024, suggesting a potential liquidity concern as the company might have been struggling to meet its short-term obligations with its current assets during these periods.
Overall, while the current ratio of Goodyear Tire & Rubber Co has shown some variability, it is important to further investigate the underlying reasons for these fluctuations to assess the company's liquidity position accurately.