Goodyear Tire & Rubber Co (GT)
Pretax margin
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | -679,000 | -468,000 | -302,000 | 156,000 | 392,000 | 1,038,500 | 1,121,500 | 967,500 | 860,500 | 429,000 | 229,000 | -747,000 | -1,144,000 | -1,248,000 | -1,114,000 | -152,000 | 163,000 | 346,000 | 737,000 | 833,000 |
| Revenue (ttm) | US$ in thousands | 19,457,000 | 19,771,000 | 19,950,000 | 20,353,000 | 20,353,000 | 20,029,000 | 19,675,000 | 18,454,000 | 17,073,000 | 15,698,000 | 14,244,000 | 12,406,000 | 11,955,000 | 12,037,000 | 12,373,000 | 13,888,000 | 14,438,000 | 14,593,000 | 14,727,000 | 14,929,000 |
| Pretax margin | -3.49% | -2.37% | -1.51% | 0.77% | 1.93% | 5.18% | 5.70% | 5.24% | 5.04% | 2.73% | 1.61% | -6.02% | -9.57% | -10.37% | -9.00% | -1.09% | 1.13% | 2.37% | 5.00% | 5.58% |
December 31, 2023 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $-679,000K ÷ $19,457,000K
= -3.49%
Goodyear Tire & Rubber Co.'s pretax margin has shown a declining trend over the past eight quarters. The company experienced negative pretax margins in the most recent two quarters, with -3.37% in Q4 2023 and -1.45% in Q3 2023. This suggests that the company's earnings before taxes were insufficient to cover its operating expenses during these periods. The improving trend from the negative margins in earlier quarters, such as Q2 2023 and Q1 2023, where the pretax margins were -0.63% and 0.79% respectively, indicates some degree of positive performance management.
Comparing the recent quarters to the same periods in the prior year reveals a year-on-year decline in pretax margins. For instance, in Q4 2023, the pretax margin was 1.92% lower than the 1.92% recorded in Q4 2022. This downward trajectory may indicate challenges in generating profits amidst changing market conditions and operational pressures. Overall, Goodyear Tire & Rubber Co. faces the challenge of improving its pretax margin to ensure sustainable profitability and financial health in the upcoming quarters.