Goodyear Tire & Rubber Co (GT)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 4,668,000 | 5,300,000 | 4,999,000 | 3,078,000 | 4,351,000 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $4,668,000K)
= 0.00
The debt-to-capital ratio for Goodyear Tire & Rubber Co. has shown some fluctuations over the past five years. As of December 31, 2023, the ratio stands at 0.62, which indicates that debt accounts for 62% of the company's capital structure. This represents a slight increase from the previous year's ratio of 0.60.
Looking back at the trend, the ratio was consistent at 0.60 in both December 31, 2022, and December 31, 2021. However, in December 31, 2020, the ratio increased to 0.66 before decreasing in December 31, 2019, to 0.57.
The fluctuations in the debt-to-capital ratio suggest potential changes in Goodyear's capital structure and its reliance on debt financing. A higher ratio indicates a higher level of debt compared to equity in the company's capital structure, which could imply increased financial risk and leverage. Conversely, a lower ratio suggests a more conservative capital structure with a higher proportion of equity.
Further analysis of the company's financial performance, debt management strategies, and overall business environment would provide additional insights into the factors influencing Goodyear's debt-to-capital ratio over the years.