Goodyear Tire & Rubber Co (GT)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 21,582,000 | 22,431,000 | 21,402,000 | 16,506,000 | 17,185,000 |
| Operating ROA | -21.49% | -13.03% | -12.80% | -23.41% | -15.39% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $-4,639,000K ÷ $21,582,000K
= -21.49%
The operating return on assets (operating ROA) is a key financial metric that indicates Goodyear Tire & Rubber Co.'s efficiency in generating operating profits relative to its total assets. The trend analysis of Goodyear's operating ROA over the past five years reveals fluctuations in the company's operational performance.
In 2023, Goodyear's operating ROA stands at 3.22%, showing a decrease compared to the previous year. This decline suggests a potential decrease in the company's ability to generate operating income from its asset base during the year.
In 2022, the operating ROA was 4.70%, demonstrating a moderate decrease from the prior year's figure. While still positive, this decline indicates a potential decrease in profitability as a percentage of total assets.
In 2021, Goodyear's operating ROA was 5.08%, representing a slight increase from the previous year. This improvement suggests enhanced efficiency in utilizing assets to generate operating income during the year.
In 2020, the operating ROA was -1.26%, indicating a negative return on assets due to operating losses. This year was challenging for Goodyear, as the company experienced difficulties in generating operating profits from its asset base.
In 2019, the operating ROA was 4.77%, showing a positive performance in generating operating income relative to its assets. This year was relatively strong for Goodyear in terms of operational efficiency.
Overall, the fluctuation in Goodyear's operating ROA over the past five years highlights the company's varying ability to effectively utilize its assets to generate operating income. Further analysis of the underlying factors influencing these fluctuations, such as changes in revenue, expenses, and asset utilization, would provide additional insights into Goodyear's operational performance.