Goodyear Tire & Rubber Co (GT)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets 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 |
| Debt-to-capital 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 |
| 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 |
| 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 |
Goodyear Tire & Rubber Co's solvency ratios indicate a strong financial position with consistently low debt ratios over the years. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all remained at 0.00% from March 2020 to December 2024, which suggests that the company has a minimal amount of debt in relation to its assets, capital, and equity.
The Financial leverage ratio, which measures the extent to which the company relies on debt financing, decreased from 4.76 in March 2020 to 4.27 in December 2024. This decline indicates that Goodyear Tire & Rubber Co has been able to reduce its reliance on debt over the years, leading to a more secure financial structure.
Overall, the consistent low debt ratios and decreasing financial leverage ratio demonstrate that Goodyear Tire & Rubber Co has maintained a solid solvency position, which is essential for long-term financial stability and sustainability. The company's ability to manage its debt effectively bodes well for its future financial health and ability to weather economic challenges.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 1.33 | 0.48 | 0.75 | 0.22 | 0.04 | 0.54 | 0.60 | 1.37 | 1.92 | 2.61 | 2.69 | 2.58 | 2.57 | 2.48 | 1.99 | -1.00 | -2.46 | -2.78 | -2.37 | 0.63 |
The interest coverage ratio of Goodyear Tire & Rubber Co has shown fluctuations over the quarters provided. This ratio represents the company's ability to meet its interest obligations with its earnings before interest and taxes. An interest coverage ratio below 1 indicates that the company is not generating enough earnings to cover its interest expenses.
From March 31, 2020, to September 30, 2021, the company had negative interest coverage ratios, implying significant challenges in meeting its interest obligations from operating income alone. However, starting from June 30, 2021, the interest coverage ratio improved and turned positive, indicating a better ability to cover interest payments. This positive trend continued until December 31, 2022, with the interest coverage ratio peaking at 2.69 on June 30, 2022.
However, from March 31, 2023, the interest coverage ratio started declining again, indicating a potential deterioration in the company's ability to cover interest expenses with its operating income. By December 31, 2024, the interest coverage ratio slightly improved to 1.33 but remained below the ideal threshold of 2, suggesting that the company may still be at risk of potential financial distress if its earnings do not continue to increase to cover its interest obligations more comfortably.
Overall, Goodyear Tire & Rubber Co's interest coverage ratio showed a mix of positive improvements and concerning fluctuations over the quarters, reflecting the company's changing ability to handle its interest payments with its operating earnings.