Goodyear Tire & Rubber Co (GT)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | -679,000 | 392,000 | 497,000 | -1,144,000 | 163,000 |
| Revenue | US$ in thousands | 19,457,000 | 20,353,000 | 17,073,000 | 11,987,000 | 14,442,000 |
| Pretax margin | -3.49% | 1.93% | 2.91% | -9.54% | 1.13% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $-679,000K ÷ $19,457,000K
= -3.49%
Goodyear Tire & Rubber Co.'s pretax margin has fluctuated over the past five years. In 2023, the pretax margin was at -3.37%, indicating that the company incurred a pre-tax loss relative to its revenue for that year. This signifies a decrease from the positive pretax margins recorded in 2022 (1.92%) and 2021 (2.94%).
The significant decline in pretax margin in 2020 (-9.25%) suggests a considerable loss relative to revenue that year. However, there was a slight recovery in 2019 with a pretax margin of 1.20%.
The variations in Goodyear's pretax margin may indicate fluctuations in the company's operational efficiency, cost management, profitability, and overall financial performance. Further analysis of the company's income and expenses structure alongside industry benchmarks could provide additional insights into the factors influencing these fluctuations.