Goodyear Tire & Rubber Co (GT)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 60,000 | -689,000 | 202,000 | 764,000 | -1,250,000 |
| Total assets | US$ in thousands | 20,964,000 | 21,582,000 | 22,431,000 | 21,402,000 | 16,506,000 |
| ROA | 0.29% | -3.19% | 0.90% | 3.57% | -7.57% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $60,000K ÷ $20,964,000K
= 0.29%
Goodyear Tire & Rubber Co's return on assets (ROA) provides insight into the company's efficiency in generating profits from its assets. The ROA was negative at -7.57% as of December 31, 2020, indicating the company was not effectively utilizing its assets to generate earnings. However, there was a significant improvement as of December 31, 2021, with the ROA increasing to 3.57%, suggesting better asset utilization and profitability.
The ROA decreased to 0.90% by December 31, 2022, potentially indicating a slight decline in asset efficiency or profitability. It then turned negative again at -3.19% by December 31, 2023, signaling a potential decline in profitability relative to the company's asset base. However, there was a slight improvement as of December 31, 2024, with the ROA increasing to 0.29%.
Overall, Goodyear Tire & Rubber Co's ROA has shown fluctuations over the analyzed period, with varying levels of asset efficiency and profitability. Investors and stakeholders may need to further examine the company's operational performance and strategic decisions to understand the underlying factors impacting these ROA fluctuations.