Goodyear Tire & Rubber Co (GT)
Financial leverage ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 20,964,000 | 22,549,000 | 22,025,000 | 21,991,000 | 21,582,000 | 22,499,000 | 22,814,000 | 23,171,000 | 22,431,000 | 23,378,000 | 22,901,000 | 22,622,000 | 21,402,000 | 21,617,000 | 21,180,000 | 16,569,000 | 16,506,000 | 16,192,000 | 15,827,000 | 16,691,000 |
| Total stockholders’ equity | US$ in thousands | 4,906,000 | 4,745,000 | 4,703,000 | 4,635,000 | 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 |
| Financial leverage ratio | 4.27 | 4.75 | 4.68 | 4.74 | 4.62 | 4.51 | 4.47 | 4.41 | 4.23 | 4.60 | 4.43 | 4.40 | 4.28 | 5.01 | 5.03 | 5.33 | 5.36 | 5.66 | 5.59 | 4.76 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $20,964,000K ÷ $4,906,000K
= 4.27
The financial leverage ratio of Goodyear Tire & Rubber Co has shown some fluctuations over the period from March 31, 2020, to December 31, 2024. The ratio started at 4.76 in March 2020, increased to 5.66 by September 2020, and then fluctuated between 4.23 and 5.36 until the end of 2022. From March 2023 to December 2024, the ratio ranged between 4.23 and 4.75, with a slight upward trend observed towards the end of the period.
A financial leverage ratio above 5 suggests that the company has a high level of debt compared to its equity, indicating higher financial risk. The decreasing trend seen in the latter part of the period could indicate a decrease in the company's reliance on debt financing or an increase in equity, potentially reducing the financial risk.
Overall, monitoring the financial leverage ratio is important for assessing the company's capital structure and its ability to meet financial obligations. The downward trend towards the end of the period could indicate positive changes in the company's leverage position, but further analysis of the company's debt management and financial health would be needed to provide a more comprehensive assessment.