Goodyear Tire & Rubber Co (GT)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total assets | US$ in thousands | 21,582,000 | 22,431,000 | 21,402,000 | 16,506,000 | 17,185,000 |
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $—K ÷ $21,582,000K
= 0.00
The debt-to-assets ratio of Goodyear Tire & Rubber Co. has remained relatively stable over the past five years, ranging from 0.33 to 0.36. This ratio indicates that, on average, approximately 35% of the company's assets have been financed through debt over this period. A ratio of 0.35 suggests a moderate level of leverage, indicating that the company relies more on equity rather than debt to finance its assets. The consistent nature of this ratio implies that Goodyear has maintained a balanced approach to managing its debt levels relative to its asset base. It also indicates a degree of stability in the company's capital structure, which may be seen as a positive factor in terms of financial risk management.