Goodyear Tire & Rubber Co (GT)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 4,668,000 | 4,993,000 | 5,105,000 | 5,253,000 | 5,300,000 | 5,087,000 | 5,174,000 | 5,145,000 | 4,999,000 | 4,314,000 | 4,212,000 | 3,106,000 | 3,078,000 | 2,860,000 | 2,833,000 | 3,510,000 | 4,351,000 | 4,835,000 | 4,847,000 | 4,808,000 |
| ROE | -14.76% | -10.05% | -7.23% | 0.10% | 3.81% | 16.89% | 18.30% | 16.48% | 15.28% | 6.35% | 3.32% | -20.06% | -40.74% | -59.76% | -57.15% | -24.76% | -7.15% | 3.95% | 9.37% | 11.58% |
December 31, 2023 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $-689,000K ÷ $4,668,000K
= -14.76%
The return on equity (ROE) for Goodyear Tire & Rubber Co. has shown a downward trend over the past eight quarters. In Q1 2022, the ROE was at a relatively healthy 16.48%. However, the ROE has steadily decreased since then, reaching a negative ROE of -14.76% in Q4 2023.
This decline in ROE indicates a decrease in the company's profitability and efficiency in utilizing shareholder equity to generate earnings. It suggests that the company may be facing challenges in generating profits relative to the equity invested by shareholders.
The negative ROE values in the most recent quarters highlight potential issues that investors and analysts may need to further investigate, such as declining profitability, liquidity concerns, or inefficient asset utilization. Additionally, this trend may raise concerns about the company's ability to generate sustainable returns for its shareholders in the future.