Goodyear Tire & Rubber Co (GT)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 4,906,000 | 4,668,000 | 5,300,000 | 4,999,000 | 3,078,000 |
| ROE | 1.22% | -14.76% | 3.81% | 15.28% | -40.61% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $60,000K ÷ $4,906,000K
= 1.22%
Goodyear Tire & Rubber Co's return on equity (ROE) has displayed significant fluctuations over the past five years.
In December 2020, the company reported an ROE of -40.61%, indicating that its net income was in the negative territory relative to its equity, which may be concerning for investors and stakeholders. However, Goodyear Tire & Rubber Co managed to improve its performance in 2021, achieving an ROE of 15.28%, signaling a positive return on equity compared to the previous year.
Despite this improvement, the company experienced a decline in its ROE in 2022 to 3.81%, suggesting a reduction in the profitability generated from the shareholders' equity. Subsequently, in 2023, the ROE further decreased to -14.76%, reflecting a negative return on equity and potential financial challenges faced by the company during that period.
In the most recent year, December 2024, Goodyear Tire & Rubber Co's ROE stood at 1.22%, indicating a modest growth in the return on equity compared to the prior year. Overall, the fluctuating trend in the ROE of Goodyear Tire & Rubber Co implies varying levels of profitability and efficiency in utilizing the shareholders' equity, which could impact investor confidence and future financial performance.