Goodyear Tire & Rubber Co (GT)
Quick 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 810,000 | 905,000 | 852,000 | 954,000 | 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 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Quick ratio | 0.11 | 0.12 | 0.11 | 0.14 | 0.13 | 0.15 | 0.15 | 0.15 | 0.17 | 0.17 | 0.18 | 0.15 | 0.16 | 0.17 | 0.16 | 0.23 | 0.30 | 0.22 | 0.22 | 0.18 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($810,000K
+ $—K
+ $—K)
÷ $7,337,000K
= 0.11
The quick ratio of Goodyear Tire & Rubber Co has fluctuated over the past few years, indicating changes in the company's liquidity position. The quick ratio measures the company's ability to cover its short-term liabilities with its most liquid assets. A quick ratio below 1 suggests that the company may have difficulties meeting its short-term obligations.
Based on the data provided:
- The quick ratio was consistently low from March 2020 to September 2021, ranging from 0.15 to 0.23.
- There was a slight improvement in the quick ratio in December 2021, reaching 0.30, indicating a better ability to cover short-term liabilities.
- However, the quick ratio declined again in the following quarters, dropping to 0.11 by December 2024.
Overall, the trend in the quick ratio of Goodyear Tire & Rubber Co shows some volatility, with periods of improvement followed by declines. It would be important for the company to closely monitor and manage its liquidity position to ensure its ability to meet short-term obligations efficiently.