Goodyear Tire & Rubber Co (GT)
Operating profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 920,000 | 73,000 | 883,000 | 993,000 | -327,000 |
| Revenue | US$ in thousands | 18,878,000 | 20,066,000 | 20,805,000 | 17,478,000 | 12,321,000 |
| Operating profit margin | 4.87% | 0.36% | 4.24% | 5.68% | -2.65% |
December 31, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $920,000K ÷ $18,878,000K
= 4.87%
The operating profit margin of Goodyear Tire & Rubber Co has shown fluctuating trends over the past five years. In December 2020, the company reported a negative operating profit margin of -2.65%, indicating that its operating expenses exceeded its gross profit. However, there was a significant improvement in December 2021, with the operating profit margin increasing to 5.68%, suggesting better operational efficiency and cost management.
In the subsequent years, the operating profit margin continued to show some variability. By December 2022, the operating profit margin decreased to 4.24%, still indicating a healthy level of profitability but slightly lower than the previous year. The trend reversed in December 2023 when the operating profit margin dropped to 0.36%, signaling a significant decline in profitability, possibly due to higher operating expenses or lower sales.
Lastly, in December 2024, the operating profit margin recovered to 4.87%, showing an improvement from the previous year but still below the levels observed in 2021 and 2022. Overall, the fluctuating nature of Goodyear Tire & Rubber Co's operating profit margin suggests varying levels of efficiency and profitability in managing its operating costs and generating profits from its core business operations over the analyzed period.