Goodyear Tire & Rubber Co (GT)
Debt-to-equity ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 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 for Goodyear Tire & Rubber Co. has been relatively stable over the past eight quarters, ranging from 1.49 to 1.74. This ratio indicates that the company has been relying more on debt financing compared to equity financing.
A ratio above 1 signifies that the company has more debt than equity in its capital structure. This implies a higher level of financial risk, as debt obligations need to be serviced regularly, including interest payments. However, a higher debt-to-equity ratio can also indicate potential for higher returns for shareholders due to the leverage effect.
While the trend in Goodyear's debt-to-equity ratio has shown some fluctuations, it is important to monitor the ratio over time to ensure the company's ability to meet its financial obligations and sustain its operations effectively. Additionally, it is crucial to compare this ratio with industry averages and other key financial metrics to gain a comprehensive understanding of the company's overall financial health and risk profile.