Goodyear Tire & Rubber Co (GT)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 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 | 5,934,000 | 6,861,000 | 6,781,000 | 6,492,000 |
| 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 |
| Current ratio | 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 | 1.12 | 1.33 | 1.33 | 1.28 |
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 shown some fluctuations over the past eight quarters. In Q4 2023, the current ratio decreased to 1.07 from the previous quarter's 1.30. This decline indicates that the company may have a lower ability to cover its short-term liabilities with its current assets in the most recent quarter.
Comparing the current ratio to Q4 2022, where it was at 1.21, the current ratio in Q4 2023 is lower, suggesting a potential worsening liquidity position. However, it should be noted that a current ratio of above 1.0 still indicates the company's ability to meet its short-term obligations with its current assets.
Overall, while the recent decrease in the current ratio may raise some concerns about Goodyear's liquidity position, further analysis of other financial metrics and trends is necessary to obtain a more comprehensive view of the company's financial health.