Goodyear Tire & Rubber Co (GT)
Net profit margin
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 66,000 | -297,000 | -352,000 | -645,000 | -689,000 | -503,000 | -370,000 | 4,000 | 201,000 | 859,000 | 947,000 | 848,000 | 764,000 | 274,000 | 140,000 | -623,000 | -1,254,000 | -1,709,000 | -1,619,000 | -869,000 |
| Revenue (ttm) | US$ in thousands | 18,878,000 | 19,047,000 | 19,365,000 | 19,662,000 | 20,066,000 | 20,324,000 | 20,493,000 | 20,838,000 | 20,805,000 | 20,485,000 | 20,108,000 | 18,875,000 | 17,478,000 | 16,080,000 | 14,611,000 | 12,776,000 | 12,321,000 | 12,378,000 | 12,715,000 | 14,203,000 |
| Net profit margin | 0.35% | -1.56% | -1.82% | -3.28% | -3.43% | -2.47% | -1.81% | 0.02% | 0.97% | 4.19% | 4.71% | 4.49% | 4.37% | 1.70% | 0.96% | -4.88% | -10.18% | -13.81% | -12.73% | -6.12% |
December 31, 2024 calculation
Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $66,000K ÷ $18,878,000K
= 0.35%
Net profit margin is a crucial financial ratio that reflects a company's profitability by indicating how efficiently it converts revenue into profit after all expenses are deducted. Analyzing Goodyear Tire & Rubber Co's net profit margin over time shows a fluctuating trend.
The company experienced negative net profit margins in the first half of 2020, indicating that expenses exceeded revenues during that period. However, the situation improved in the second half of 2020 and continued into 2021, with the net profit margin turning positive, albeit at low levels.
From March 2021 to June 2022, Goodyear's net profit margin showed a relatively steady improvement, reaching its peak at 4.71% in June 2022. This indicates that the company was able to control costs and drive profitability during this period.
Subsequently, there was a slight decline in the net profit margin from June 2022 to December 2024, with some fluctuations along the way. Despite the decreases in profitability during certain quarters, the company managed to remain profitable overall, as evidenced by the positive net profit margins recorded.
Overall, the analysis of Goodyear Tire & Rubber Co's net profit margin demonstrates its ability to navigate through challenging economic conditions and fluctuations in profitability, showcasing its resilience and adaptability in maintaining a positive bottom line.