Goodyear Tire & Rubber Co (GT)
Debt-to-equity 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-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $4,668,000K
= 0.00
The debt-to-equity ratio of Goodyear Tire & Rubber Co. has fluctuated over the past five years. In 2023, the ratio increased to 1.63 from 1.49 in 2022, indicating a higher reliance on debt relative to equity. However, it is important to note that the ratio was lower in 2021 at 1.48.
In 2020, the ratio spiked to 1.95 before decreasing to 1.30 in 2019. This suggests that the company may have taken on more debt in 2020 relative to its equity position, but then made efforts to reduce its debt burden in subsequent years.
Overall, the trend in the debt-to-equity ratio of Goodyear Tire & Rubber Co. shows some variability, with the company experiencing periods of both higher and lower leverage. Further analysis would be necessary to understand the reasons behind these fluctuations and whether they align with the company's strategic goals and financial health.