Goodyear Tire & Rubber Co (GT)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 693,000 | 247,000 | 391,000 | 119,000 | 19,000 | 281,000 | 301,000 | 648,000 | 868,000 | 1,143,000 | 1,145,000 | 1,064,000 | 996,000 | 887,000 | 679,000 | -331,000 | -798,000 | -904,000 | -771,000 | 208,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Return on total capital | 14.13% | 5.21% | 8.31% | 2.57% | 0.41% | 5.63% | 5.90% | 12.34% | 16.38% | 22.47% | 22.13% | 20.68% | 19.92% | 20.56% | 16.12% | -10.66% | -25.93% | -31.61% | -27.21% | 5.93% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $693,000K ÷ ($—K + $4,906,000K)
= 14.13%
Goodyear Tire & Rubber Co's return on total capital has shown fluctuations over the given time period. The company experienced negative returns in the second half of 2020 and the first half of 2021, indicating challenges in generating profits relative to the total capital employed.
However, the company's performance improved significantly in the second half of 2021 and continued to strengthen in 2022 and 2023. During this period, Goodyear demonstrated a consistent increase in its return on total capital, reaching its peak at 22.47% in September 2022.
In 2024, the return on total capital exhibited some variability, with a noticeable decline at the end of the year. Despite this decrease, the figure remained positive, which suggests that Goodyear was still able to generate returns above the cost of its total capital.
Overall, the trend in Goodyear Tire & Rubber Co's return on total capital indicates a mix of challenges and improvements in profitability and capital efficiency over the analyzed period.