Goodyear Tire & Rubber Co (GT)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 21,582,000 | 22,431,000 | 21,402,000 | 16,506,000 | 17,185,000 |
| Total stockholders’ equity | US$ in thousands | 4,668,000 | 5,300,000 | 4,999,000 | 3,078,000 | 4,351,000 |
| Financial leverage ratio | 4.62 | 4.23 | 4.28 | 5.36 | 3.95 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $21,582,000K ÷ $4,668,000K
= 4.62
The financial leverage ratio for Goodyear Tire & Rubber Co. has fluctuated over the past five years. In 2023, the ratio stands at 4.62, higher than the previous year's ratio of 4.23. This indicates that the company's reliance on debt to finance its assets has increased. Comparing to 2021, although there was a slight increase in 2023, it is still lower than the ratio of 4.28 in 2021. However, the ratio in 2023 is significantly lower than the ratio of 5.36 in 2020, suggesting that the company has reduced its debt relative to assets since then. The financial leverage ratio in 2019 was 3.95, which was lower than all the subsequent years, indicating that the company has taken on more debt in recent years to finance its operations and investments. Overall, the trend in the financial leverage ratio for Goodyear Tire & Rubber Co. shows fluctuations in the company's debt levels relative to its assets over the past five years.