Goodyear Tire & Rubber Co (GT)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 | 4.62 | 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 | 3.95 | 3.78 | 3.81 | 3.80 |
The solvency ratios of Goodyear Tire & Rubber Co. provide insights into the company's ability to meet its long-term financial obligations. The debt-to-assets ratio, which measures the proportion of total assets financed by debt, has been relatively stable around 0.35 to 0.39 over the past eight quarters. This indicates that around 35% to 39% of the company's assets are funded by debt.
The debt-to-capital ratio, showing the percentage of capital contributed by debt, has also been consistent, staying within the range of 0.60 to 0.63. This suggests that Goodyear relies on debt to finance approximately 60% to 63% of its capital structure.
The debt-to-equity ratio, highlighting the relationship between debt and shareholders' equity, has shown more variability, fluctuating between 1.49 and 1.74. The increase in this ratio from 1.49 in Q4 2022 to 1.74 in Q3 2023 indicates a higher reliance on debt versus equity to finance the company's operations during this period.
Lastly, the financial leverage ratio, which indicates the extent to which the company employs debt in its capital structure, has generally trended upwards from 4.23 in Q4 2022 to 4.62 in Q4 2023. This suggests that Goodyear has increased the level of financial leverage over the past year, indicating a higher risk due to the larger proportion of debt relative to equity in its capital structure.
Overall, while Goodyear Tire & Rubber Co. has maintained relatively stable debt levels in relation to its assets and capital, the increasing trends in debt-to-equity ratio and financial leverage ratio highlight a potential shift towards a higher debt burden and financial risk. Further monitoring of these solvency ratios will be essential to assess the company's long-term financial health and stability.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | -0.28 | 0.11 | 0.40 | 1.33 | 1.87 | 3.37 | 3.64 | 3.35 | 3.22 | 2.20 | 1.67 | -1.26 | -2.53 | -2.84 | -2.43 | 0.54 | 1.48 | 2.00 | 3.17 | 3.52 |
The interest coverage ratio for Goodyear Tire & Rubber Co. has been fluctuating over the past eight quarters. The ratio measures the company's ability to cover its interest expenses with its operating income. A higher ratio indicates a stronger ability to meet interest obligations.
In Q4 2023, the interest coverage ratio was 1.55, showing a slight increase from the previous quarter's ratio of 1.28. However, the ratio is lower than the ratios in the corresponding quarters of 2022, indicating a relative decrease in the company's ability to cover its interest expenses with operating income compared to the same period last year.
The trend from Q1 2023 to Q4 2022 shows a declining interest coverage ratio, which could raise concerns about the company's ability to meet its interest obligations. It is important for stakeholders to monitor this trend closely and assess the company's profitability and financial health in relation to its debt obligations.