Goodyear Tire & Rubber Co (GT)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 902,000 | 1,227,000 | 1,088,000 | 1,539,000 | 908,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 2,731,000 | 2,610,000 | 2,387,000 | 1,691,000 | 1,941,000 |
| Total current liabilities | US$ in thousands | 7,147,000 | 7,140,000 | 6,612,000 | 5,106,000 | 5,287,000 |
| Quick ratio | 0.51 | 0.54 | 0.53 | 0.63 | 0.54 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($902,000K
+ $—K
+ $2,731,000K)
÷ $7,147,000K
= 0.51
The quick ratio of Goodyear Tire & Rubber Co. has exhibited a fluctuating trend over the past five years. In 2023, the quick ratio decreased to 0.55 from 0.57 in 2022. This indicates a decline in the company's short-term liquidity and ability to cover its current liabilities with its most liquid assets.
Comparing to previous years, the quick ratio was also at 0.57 in both 2022 and 2021. A slight decrease from 2020 when it stood at 0.68, which was the highest among the five years. The quick ratio was lower in 2019 at 0.58 compared to 2020.
Overall, the recent decrease in the quick ratio may raise concerns about Goodyear's short-term liquidity position, suggesting a potential challenge in meeting its current obligations using its quick assets. Further analysis and monitoring of the company's financial health and management of current assets and liabilities may be warranted.