Goodyear Tire & Rubber Co (GT)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | -4,639,000 | -2,923,000 | -2,739,000 | -3,864,000 | -2,645,000 |
| Revenue | US$ in thousands | 19,457,000 | 20,353,000 | 17,073,000 | 11,987,000 | 14,442,000 |
| Operating profit margin | -23.84% | -14.36% | -16.04% | -32.23% | -18.31% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $-4,639,000K ÷ $19,457,000K
= -23.84%
The operating profit margin of Goodyear Tire & Rubber Co. has shown some fluctuations over the past five years. In 2023, the operating profit margin declined to 3.46% from 5.07% in 2022, indicating a decrease in the company's ability to generate profits from its core operations. Compared to 2021, when the operating profit margin was 6.22%, the margin has declined significantly by about 2.76 percentage points.
The negative operating profit margin of -1.69% in 2020 signifies that the company's operating expenses exceeded its gross profit, resulting in a loss from core operations. However, Goodyear Tire & Rubber Co. managed to improve its operating performance in the subsequent year, with a positive operating profit margin of 5.56% in 2019.
Overall, the trend in the operating profit margin highlights some volatility in the company's operational efficiency and profitability over the past five years, suggesting potential challenges in managing costs and maximizing revenue generation from its primary business activities.