Goodyear Tire & Rubber Co (GT)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -147,000 | 55,000 | 200,000 | 630,000 | 843,000 | 1,476,500 | 1,546,500 | 1,379,500 | 1,247,500 | 787,000 | 571,000 | -417,000 | -820,000 | -923,000 | -789,000 | 176,000 | 503,000 | 692,000 | 1,077,000 | 1,163,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Return on total capital | -3.15% | 1.10% | 3.92% | 11.99% | 15.91% | 29.02% | 29.89% | 26.81% | 24.95% | 18.24% | 13.56% | -13.43% | -26.64% | -32.27% | -27.85% | 5.01% | 11.56% | 14.31% | 22.22% | 24.19% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-147,000K ÷ ($—K + $4,668,000K)
= -3.15%
Goodyear Tire & Rubber Co.'s return on total capital has shown a downward trend in recent quarters, starting at 8.47% in Q1 2022 and declining to 5.65% in Q4 2023. This indicates a decreasing ability of the company to generate returns from its total capital investments over time. The fluctuation in the return on total capital could be attributed to changes in the company's profitability, efficiency, or capital structure. Further investigation into the specific factors affecting the return on total capital would be necessary to understand the underlying causes of this trend and evaluate the company's overall financial performance.