Goodyear Tire & Rubber Co (GT)
Operating return on assets (Operating ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 921,000 | 888,000 | 549,000 | 122,000 | 50,000 | -162,000 | 187,000 | 689,000 | 881,000 | 1,154,000 | 1,177,000 | 1,128,000 | 1,077,000 | 1,009,000 | 831,000 | 65,000 | -208,000 | -273,000 | -143,000 | 571,000 |
| Total assets | US$ in thousands | 20,964,000 | 22,549,000 | 22,025,000 | 21,991,000 | 21,582,000 | 22,499,000 | 22,814,000 | 23,171,000 | 22,431,000 | 23,378,000 | 22,901,000 | 22,622,000 | 21,402,000 | 21,617,000 | 21,180,000 | 16,569,000 | 16,506,000 | 16,192,000 | 15,827,000 | 16,691,000 |
| Operating ROA | 4.39% | 3.94% | 2.49% | 0.55% | 0.23% | -0.72% | 0.82% | 2.97% | 3.93% | 4.94% | 5.14% | 4.99% | 5.03% | 4.67% | 3.92% | 0.39% | -1.26% | -1.69% | -0.90% | 3.42% |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $921,000K ÷ $20,964,000K
= 4.39%
Goodyear Tire & Rubber Co's operating return on assets (operating ROA) has displayed fluctuating performance over the observed periods. The metric started positively at 3.42% as of March 31, 2020, indicating a reasonable return on assets. However, by June 30, 2020, the operating ROA turned negative to -0.90%, suggesting a decline in operational efficiency.
The negative trend continued through the subsequent quarters in 2020, with the operating ROA recording -1.69% as of September 30, and further deteriorating to -1.26% by December 31, 2020. This performance could indicate challenges in generating earnings from the company's assets during a difficult period.
The situation improved in the first half of 2021, with the operating ROA showing a slight recovery to 0.39% by March 31 and a more significant improvement to 3.92% by June 30. The positive momentum continued through the second half of 2021 and into 2022, with the metric reaching 5.14% by June 30, 2022, highlighting better asset utilization and profitability.
Subsequently, there was a slight decline in operating ROA in the following periods, reaching 3.93% by December 31, 2022. However, the metric remained relatively stable around 3-5% from March 31, 2023, to June 30, 2024, indicating consistent operational performance.
Overall, Goodyear Tire & Rubber Co's operating ROA has shown variations over time, reflecting periods of both challenges and improvements in the company's ability to generate profits from its assets.