Goodyear Tire & Rubber Co (GT)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 4,906,000 | 4,745,000 | 4,703,000 | 4,635,000 | 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 |
| ROE | 1.35% | -6.26% | -7.48% | -13.92% | -14.76% | -10.07% | -7.25% | 0.08% | 3.79% | 16.89% | 18.30% | 16.48% | 15.28% | 6.35% | 3.32% | -20.06% | -40.74% | -59.76% | -57.15% | -24.76% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $66,000K ÷ $4,906,000K
= 1.35%
The return on equity (ROE) of Goodyear Tire & Rubber Co has shown significant variability over the past few years. It started with negative ROE figures in early 2020, indicating that the company was experiencing losses relative to its equity. However, by mid-2021, the ROE turned positive, showing signs of improvement. Throughout 2021 and into early 2022, the ROE continued to rise, reaching a peak of 18.30% in June 2022.
After that peak, the ROE began to decline, slipping below double digits by the end of 2023. The trend continued into 2024, with ROE remaining negative for most quarters, but showing a slight recovery towards positive territory by the end of December 2024.
Overall, Goodyear Tire & Rubber Co's ROE has been volatile, reflecting fluctuations in profitability and efficiency in utilizing shareholders' equity. The company may need to focus on sustaining positive ROE figures and improving profitability to enhance shareholder value in the long term.