Goodyear Tire & Rubber Co (GT)
Pretax margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 155,000 | -677,000 | 399,000 | 513,000 | -1,140,000 |
| Revenue | US$ in thousands | 18,878,000 | 20,066,000 | 20,805,000 | 17,478,000 | 12,321,000 |
| Pretax margin | 0.82% | -3.37% | 1.92% | 2.94% | -9.25% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $155,000K ÷ $18,878,000K
= 0.82%
The pretax margin of Goodyear Tire & Rubber Co has shown fluctuations over the past five years. In 2020, the pretax margin was at -9.25%, indicating that the company incurred a pre-tax loss. However, there has been a gradual improvement in profitability since then. In 2021, the pretax margin increased to 2.94%, reflecting a positive trend in the company's operating efficiency.
Despite this improvement, the pretax margin dipped slightly to 1.92% in 2022, suggesting a slight decrease in profitability. In 2023, there was a significant decline in the pretax margin to -3.37%, indicating a potential challenge or setback faced by the company during that year.
However, in 2024, there was a recovery in profitability as the pretax margin increased to 0.82%. While the company managed to move towards profitability, it is worth noting that the pretax margin remains relatively low compared to the healthier levels seen in some of the previous years.
Overall, the analysis of Goodyear Tire & Rubber Co's pretax margin indicates a mix of challenges and improvements in profitability over the five-year period, highlighting the company's efforts to manage its operating efficiency and financial performance.