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Goodyear Tire & Rubber Co (Goodyear Tire & Rubber Co) Inventory Turnover

: 1.06 (As of Dec. 2023)
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Inventory Turnover measures how fast the company turns over its inventory within a year. It is calculated as Cost of Goods Sold divided by Total Inventories. Goodyear Tire & Rubber Co's Cost of Goods Sold for the three months ended in Dec. 2023 was $4,070 Mil. Goodyear Tire & Rubber Co's Average Total Inventories for the quarter that ended in Dec. 2023 was $3,831 Mil. Goodyear Tire & Rubber Co's Inventory Turnover for the quarter that ended in Dec. 2023 was 1.06.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Goodyear Tire & Rubber Co's Days Inventory for the three months ended in Dec. 2023 was 85.89.

Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue. Goodyear Tire & Rubber Co's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.75.

Goodyear Tire & Rubber Co Inventory Turnover Historical Data

The historical data trend for Goodyear Tire & Rubber Co's Inventory Turnover can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Goodyear Tire & Rubber Co Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Inventory Turnover
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.07 4.13 4.76 4.15 4.00

Goodyear Tire & Rubber Co Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Inventory Turnover Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.96 0.92 0.93 1.00 1.06

Goodyear Tire & Rubber Co Inventory Turnover Calculation

Goodyear Tire & Rubber Co's Inventory Turnover for the fiscal year that ended in Dec. 2023 is calculated as

Inventory Turnover (A: Dec. 2023 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (A: Dec. 2023 ) / ((Total Inventories (A: Dec. 2022 ) + Total Inventories (A: Dec. 2023 )) / count )
=16557 / ((4571 + 3698) / 2 )
=16557 / 4134.5
=4.00

Goodyear Tire & Rubber Co's Inventory Turnover for the quarter that ended in Dec. 2023 is calculated as

Inventory Turnover (Q: Dec. 2023 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (Q: Dec. 2023 ) / ((Total Inventories (Q: Sep. 2023 ) + Total Inventories (Q: Dec. 2023 )) / count )
=4070 / ((3964 + 3698) / 2 )
=4070 / 3831
=1.06

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Goodyear Tire & Rubber Co  (NAS:GT) Inventory Turnover Explanation

Inventory Turnover measures how fast the company turns over its inventory within a year. A higher Inventory Turnover means the company has light inventory. Therefore the company spends less money on storage, write downs, and obsolete inventory. If the inventory is too light, it may affect sales because the company may not have enough to meet demand.

1. Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

Goodyear Tire & Rubber Co's Days Inventory for the three months ended in Dec. 2023 is calculated as:

Days Inventory =Average Total Inventories (Q: Dec. 2023 )/Cost of Goods Sold (Q: Dec. 2023 )*Days in Period
=3831/4070*365 / 4
=85.89

2. Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.

Goodyear Tire & Rubber Co's Inventory to Revenue for the quarter that ended in Dec. 2023 is calculated as

Inventory-to-Revenue=Average Total Inventories (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=3831 / 5116
=0.75

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Be Aware

Usually retailers pile up their inventories at holiday seasons to meet the stronger demand. Therefore, the inventory of a particular quarter of a year should not be used to calculate Inventory Turnover. An average inventory is a better indication.

Goodyear Tire & Rubber Co Inventory Turnover Related Terms

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Goodyear Tire & Rubber Co (Goodyear Tire & Rubber Co) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Goodyear Tire & Rubber Co (NAS:GT) » Definitions » Inventory Turnover
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Address
200 Innovation Way, Akron, OH, USA, 44316-0001
Website
https://www.goodyear.com
Goodyear Tire & Rubber Co manufactures and sells a variety of rubber tires under the Goodyear brand name. The firm's tires are used for automobiles, trucks, buses, aircraft, motorcycles, mining equipment, farm equipment, and industrial equipment. The company operates its business through three operating segments representing its regional tire businesses: Americas; Europe, the Middle East, and Africa (EMEA); and the Asia Pacific.
Executives
Darren R Wells officer: Vice President & Treasurer THE GOODYEAR TIRE & RUBBER COMPANY, 1144 EAST MARKET STREET, AKRON OH 44316-0001
Roger Wood director 3850 HAMLIN RD., AUBURN HILLS MI 48326
Max H Mitchell director CRANE CO, 100 FIRST STAMFORD PLACE, STAMFORD CT 06902
Joseph R Hinrichs director FORD MOTOR COMPANY, ONE AMERICAN ROAD, DEARBORN MI 48126
Margaret V Snyder officer: Vice President and Controller 200 INNOVATION WAY, AKRON OH 44316
Christina L Zamarro officer: EVP & Chief Financial Officer 200 INNOVATION WAY, AKRON OH 44316
Norma Clayton director 1915 REXFORD ROAD, CHARLOTTE NC 28211
Richard J Kramer officer: Senior Vice President THE GOODYEAR TIRE & RUBBER COMPANY, 1144 EAST MARKET STREET, AKRON OH 44316-0001
Stephen R Mcclellan officer: Pres., NAT Consumer Business 1144 EAST MARKET STREET, AKRON OH 44316
Prashanth Mahendra-rajah director C/O WABCO HOLDINGS INC., ONE CENTENNIAL AVENUE, PISCATAWAY NJ 08855
Karla R Lewis director C/O RELIANCE STEEL & ALUMINUM CO., 16100 N. 71ST STREET, SUITE 400, SCOTTSDALE AZ 85254
Nathaniel Madarang officer: President, Asia Pacific 200 INNOVATION WAY, AKRON OH 44316
Jonathan Bellissimo officer: SR VP Global Operations & Tech 200 INNOVATION WAY, AKRON OH 44316
Hera K Siu director 200 INNOVATION WAY, AKRON OH 44316
David Emmitt Phillips officer: Sr VP and General Counsel 200 INNOVATION WAY, AKRON OH 44316