Goodyear Tire & Rubber Co (GT)
Quick 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 902,000 | 1,002,000 | 1,049,000 | 1,082,000 | 1,227,000 | 1,243,000 | 1,248,000 | 1,053,000 | 1,088,000 | 1,187,000 | 1,030,000 | 1,223,000 | 1,539,000 | 1,057,000 | 1,006,000 | 971,000 | 908,000 | 868,000 | 917,000 | 860,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 2,731,000 | 3,379,000 | 3,033,000 | 3,244,000 | 2,610,000 | 3,560,000 | 3,306,000 | 3,220,000 | 2,387,000 | 3,193,000 | 2,819,000 | 2,159,000 | 1,691,000 | 2,251,000 | 1,727,000 | 2,025,000 | 1,941,000 | 2,748,000 | 2,473,000 | 2,446,000 |
| 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 |
| Quick ratio | 0.51 | 0.65 | 0.59 | 0.62 | 0.54 | 0.64 | 0.64 | 0.62 | 0.53 | 0.64 | 0.58 | 0.63 | 0.63 | 0.68 | 0.59 | 0.57 | 0.54 | 0.70 | 0.67 | 0.65 |
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 shown fluctuations over the past eight quarters. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets.
In Q4 2023, the quick ratio decreased to 0.55 from the previous quarter's 0.70, indicating a decline in the company's ability to cover its short-term liabilities with its quick assets. This may raise concerns about the company's liquidity position in the short term.
Comparing Q4 2023 to the same quarter in the previous year (Q4 2022), there has been an improvement as the quick ratio increased from 0.57 to 0.55. Despite the increase, the quick ratio remains below 1, suggesting that Goodyear Tire & Rubber Co. may have difficulty meeting its short-term obligations without relying on selling inventory or obtaining external financing.
Overall, the downward trend in the quick ratio from Q3 2023 to Q4 2023 warrants further attention and monitoring to ensure the company's liquidity remains adequate to meet its short-term financial obligations.