Goodyear Tire & Rubber Co (GT)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | -3.55% | 2.10% | 3.27% | -7.73% | 2.07% |
| Operating profit margin | -23.84% | -14.36% | -16.04% | -32.23% | -18.31% |
| Pretax margin | -3.49% | 1.93% | 2.91% | -9.54% | 1.13% |
| Net profit margin | -3.54% | 0.99% | 4.47% | -10.46% | -2.15% |
Goodyear Tire & Rubber Co.'s profitability ratios have shown fluctuations over the past five years. The gross profit margin has ranged from 16.10% to 21.66%, with a notable decrease in 2020 followed by a slight recovery in subsequent years. This indicates the company's ability to generate profits after accounting for the cost of goods sold.
The operating profit margin has varied from -1.69% to 6.22%, reflecting the company's ability to control its operating expenses and generate profits from its core business activities. The negative operating profit margin in 2020 suggests operational challenges that improved in the following years but has not surpassed the 2019 level.
The pretax margin has fluctuated between -9.25% and 2.94%, with negative margins in 2020 and 2023. This ratio indicates the company's ability to generate profits before considering tax expenses, showing significant improvement in 2021 but regressing in subsequent years.
The net profit margin has ranged from -10.18% to 4.37%, with negative margins in 2020 and 2019. This ratio reflects the company's bottom-line profitability after all expenses, including taxes and interest. The positive trend seen in recent years indicates improvements in the company's overall profitability, with the net margin improving from negative to positive levels.
Overall, Goodyear Tire & Rubber Co. has shown mixed performance in terms of profitability ratios, with improvements in some areas but challenges in others. Monitoring these ratios over time can provide insights into the company's operational efficiency and financial health.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -21.49% | -13.03% | -12.80% | -23.41% | -15.39% |
| Return on assets (ROA) | -3.19% | 0.90% | 3.57% | -7.60% | -1.81% |
| Return on total capital | -3.15% | 15.91% | 17.68% | -26.64% | 11.56% |
| Return on equity (ROE) | -14.76% | 3.81% | 15.28% | -40.74% | -7.15% |
Goodyear Tire & Rubber Co.'s profitability ratios indicate fluctuations over the past five years.
- Operating Return on Assets (Operating ROA) has decreased from 5.08% in 2021 to 3.22% in 2023, reflecting a decline in the company's operational efficiency in generating profits from its assets.
- Return on Assets (ROA) showcases a negative trend, with a significant drop from -1.81% in 2019 to -3.19% in 2023. This indicates that the company's net income has been suffering relative to its total assets over the years, suggesting ineffective asset utilization or financial performance.
- Return on Total Capital shows a similar pattern of inconsistency, with a decrease from 8.19% in 2019 to 5.65% in 2023. This metric indicates the company's ability to generate profit from the total invested capital, which appears to have fluctuated inconsistently.
- Return on Equity (ROE) has been particularly volatile, plummeting from -7.15% in 2019 to -14.76% in 2023. This indicates that the company's profitability in relation to shareholder equity has been highly erratic and negative in recent years.
Overall, the profitability ratios of Goodyear Tire & Rubber Co. highlight challenges in effectively utilizing assets and capital to generate sustainable profits, as evidenced by the declining trends and negative figures in key metrics such as ROA, ROE, and Operating ROA.