Goodyear Tire & Rubber Co (GT)
Return on assets (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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 66,000 | -297,000 | -352,000 | -645,000 | -689,000 | -503,000 | -370,000 | 4,000 | 201,000 | 859,000 | 947,000 | 848,000 | 764,000 | 274,000 | 140,000 | -623,000 | -1,254,000 | -1,709,000 | -1,619,000 | -869,000 |
| 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 |
| ROA | 0.31% | -1.32% | -1.60% | -2.93% | -3.19% | -2.24% | -1.62% | 0.02% | 0.90% | 3.67% | 4.14% | 3.75% | 3.57% | 1.27% | 0.66% | -3.76% | -7.60% | -10.55% | -10.23% | -5.21% |
December 31, 2024 calculation
ROA = Net income (ttm) ÷ Total assets
= $66,000K ÷ $20,964,000K
= 0.31%
Goodyear Tire & Rubber Co's return on assets (ROA) has shown fluctuations over the reporting periods from March 31, 2020, to December 31, 2024. The trend indicates a volatile performance in generating profits relative to its total assets.
The company's ROA was negative from March 2020 to September 2021, indicating that it was not effectively utilizing its assets to generate profits during those periods. However, the ROA started to turn positive from June 2021, reaching its peak at 4.14% on June 30, 2022, before declining again.
The third and fourth quarters of 2022 saw a decrease in ROA, with a slight recovery in the first quarter of 2023. However, the ROA turned negative again in the second quarter of 2023 and continued to decline until December 31, 2024, when it reached 0.31%.
Overall, the fluctuating ROA suggests that Goodyear Tire & Rubber Co's asset efficiency and profitability have been inconsistent over the analyzed periods. It would be important for the company to focus on improving and maintaining a sustainable return on assets to ensure efficient use of its resources and drive profitability in the long term.