Goodyear Tire & Rubber Co (GT)
Return on assets (ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | -689,000 | -502,000 | -369,000 | 5,000 | 202,000 | 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 | -311,000 | 191,000 | 454,000 | 557,000 |
| Total assets | US$ in thousands | 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 | 17,185,000 | 18,299,000 | 18,470,000 | 18,273,000 |
| ROA | -3.19% | -2.23% | -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% | -1.81% | 1.04% | 2.46% | 3.05% |
December 31, 2023 calculation
ROA = Net income (ttm) ÷ Total assets
= $-689,000K ÷ $21,582,000K
= -3.19%
The return on assets (ROA) for Goodyear Tire & Rubber Co. has exhibited a declining trend in the past few quarters, indicating decreasing profitability in relation to its total assets. The company experienced negative ROA figures of -3.19%, -2.23%, and -1.62% in Q4 2023, Q3 2023, and Q2 2023, respectively, reflecting a period of poor performance. This was a significant downturn from the positive ROA figure of 0.02% in Q1 2023.
Comparing the most recent quarters to the same periods in the prior year, there has been a marked decline in ROA. In Q4 2022, Goodyear had an ROA of 0.90%, which dropped to -3.19% in Q4 2023. This suggests a deterioration in the company's ability to generate profit from its assets over time.
Furthermore, the data for Q3 2022 and Q2 2022 showed relatively higher ROA figures at 3.67% and 4.14%, respectively, indicating better asset utilization and profitability during that period. However, the subsequent quarters witnessed a downward trend in ROA figures.
Overall, the fluctuating ROA values indicate inconsistent performance in generating profits relative to the company's asset base. It would be essential for Goodyear Tire & Rubber Co. to evaluate and improve its operational efficiency and profitability in order to enhance its return on assets in the future.