Goodyear Tire & Rubber Co (GT)
Gross profit margin
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit (ttm) | US$ in thousands | -691,000 | -362,000 | -187,000 | 204,000 | 428,000 | 642,000 | 700,000 | 640,000 | 559,000 | 295,000 | 113,000 | -748,000 | -1,172,000 | -1,043,000 | -906,000 | -62,000 | 297,000 | 461,000 | 570,000 | 685,000 |
| Revenue (ttm) | US$ in thousands | 19,457,000 | 19,771,000 | 19,950,000 | 20,353,000 | 20,353,000 | 20,029,000 | 19,675,000 | 18,454,000 | 17,073,000 | 15,698,000 | 14,244,000 | 12,406,000 | 11,955,000 | 12,037,000 | 12,373,000 | 13,888,000 | 14,438,000 | 14,593,000 | 14,727,000 | 14,929,000 |
| Gross profit margin | -3.55% | -1.83% | -0.94% | 1.00% | 2.10% | 3.21% | 3.56% | 3.47% | 3.27% | 1.88% | 0.79% | -6.03% | -9.80% | -8.66% | -7.32% | -0.45% | 2.06% | 3.16% | 3.87% | 4.59% |
December 31, 2023 calculation
Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $-691,000K ÷ $19,457,000K
= -3.55%
The gross profit margin of Goodyear Tire & Rubber Co. has exhibited a declining trend over the past four quarters. From Q1 2022 to Q4 2023, the gross profit margin has decreased from 21.02% to 17.49%. This indicates that the company's cost of goods sold relative to its revenue has been increasing, leading to lower profitability at the gross margin level.
Although there was a slight increase in the gross profit margin in Q1 2023 compared to the previous quarter, the overall trend remains negative. This downward trajectory may be attributed to various factors such as increasing production costs, pricing pressures, or changes in product mix.
It is important for Goodyear Tire & Rubber Co. to closely monitor its cost structure and pricing strategies to improve its gross profit margin and maintain competitiveness in the industry. Further analysis of the underlying drivers of the declining margin trend would be beneficial to identify areas for operational improvements and cost efficiencies.