Goodyear Tire & Rubber Co (GT)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 20,964,000 | 21,582,000 | 22,431,000 | 21,402,000 | 16,506,000 |
| Operating ROA | 4.39% | 0.34% | 3.94% | 4.64% | -1.98% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $920,000K ÷ $20,964,000K
= 4.39%
Goodyear Tire & Rubber Co's operating return on assets (operating ROA) has shown fluctuations over the past five years. In December 2020, the operating ROA was negative at -1.98%, indicating that the company generated a loss from its operating activities relative to its assets. However, there has been an improvement in performance over the following years.
In December 2021, the operating ROA increased significantly to 4.64%, reflecting a more efficient utilization of assets to generate operating profits. The trend continued in December 2022, with the operating ROA remaining stable at 3.94%. However, there was a decline in December 2023, as the operating ROA dropped to 0.34%, suggesting a decrease in the company's ability to generate earnings from its assets.
The most recent data point in December 2024 shows a positive rebound, with the operating ROA increasing to 4.39%. This indicates that the company has once again improved its operational efficiency in utilizing its assets to generate returns. Overall, Goodyear Tire & Rubber Co's operating ROA has fluctuated, with periods of both improvement and decline, highlighting the importance of closely monitoring and analyzing the company's operational performance and asset utilization strategies.