Goodyear Tire & Rubber Co (GT)
Gross profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | -691,000 | 428,000 | 559,000 | -926,000 | 299,000 |
| Revenue | US$ in thousands | 19,457,000 | 20,353,000 | 17,073,000 | 11,987,000 | 14,442,000 |
| Gross profit margin | -3.55% | 2.10% | 3.27% | -7.73% | 2.07% |
December 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $-691,000K ÷ $19,457,000K
= -3.55%
The gross profit margin of Goodyear Tire & Rubber Co. has shown fluctuation over the past five years. In 2023, the gross profit margin decreased to 17.49% from 18.51% in 2022. This downward trend follows a pattern of inconsistency, as the margin was notably higher at 21.66% in 2021, but dipped to 16.10% in 2020 before rebounding to 21.32% in 2019.
These variations in the gross profit margin indicate fluctuations in the company's ability to generate profit from its core operations after accounting for the cost of goods sold. The declining trend in recent years might suggest challenges in managing production costs or pricing strategies. Further analysis of the underlying factors contributing to these changes would be valuable in assessing the overall financial health and operational efficiency of Goodyear Tire & Rubber Co.