Goodyear Tire Return On Equity vs. Profit Margin
| GT Stock | USD 10.13 0.42 4.33% |
Return On Equity | First Reported 2010-12-31 | Previous Quarter (0.15) | Current Value (0.14) | Quarterly Volatility 0.29070352 |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.25 | 0.1747 |
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For Goodyear Tire profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Goodyear Tire to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Goodyear Tire Rubber utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Goodyear Tire's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Goodyear Tire Rubber over time as well as its relative position and ranking within its peers.
Goodyear |
Goodyear Tire's Revenue Breakdown by Earning Segment
Check out Risk vs Return Analysis.
Is Automobile Components space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Goodyear Tire. If investors know Goodyear will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Goodyear Tire listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.66) | Earnings Share (1.04) | Revenue Per Share 66.656 | Quarterly Revenue Growth (0.06) | Return On Assets 0.0219 |
The market value of Goodyear Tire Rubber is measured differently than its book value, which is the value of Goodyear that is recorded on the company's balance sheet. Investors also form their own opinion of Goodyear Tire's value that differs from its market value or its book value, called intrinsic value, which is Goodyear Tire's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Goodyear Tire's market value can be influenced by many factors that don't directly affect Goodyear Tire's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Goodyear Tire's value and its price as these two are different measures arrived at by different means. Investors typically determine if Goodyear Tire is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Goodyear Tire's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Goodyear Tire Rubber Profit Margin vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Goodyear Tire's current stock value. Our valuation model uses many indicators to compare Goodyear Tire value to that of its competitors to determine the firm's financial worth. Goodyear Tire Rubber is rated below average in return on equity category among its peers. It also is rated below average in profit margin category among its peers . At this time, Goodyear Tire's Return On Equity is comparatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Goodyear Tire by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.Goodyear Profit Margin vs. Return On Equity
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Goodyear Tire |
| = | -0.0612 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.
Goodyear Tire |
| = | (0.02) % |
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
Goodyear Profit Margin Comparison
Goodyear Tire is currently under evaluation in profit margin category among its peers.
Goodyear Tire Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Goodyear Tire, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Goodyear Tire will eventually generate negative long term returns. The profitability progress is the general direction of Goodyear Tire's change in net profit over the period of time. It can combine multiple indicators of Goodyear Tire, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -3.8 B | -4 B | |
| Operating Income | 73 M | 69.3 M | |
| Income Before Tax | -677 M | -643.1 M | |
| Total Other Income Expense Net | -750 M | -712.5 M | |
| Net Loss | -687 M | -652.6 M | |
| Income Tax Expense | 10 M | 9.5 M | |
| Net Income Applicable To Common Shares | 232.3 M | 380.3 M | |
| Net Loss | -496 M | -471.2 M | |
| Non Operating Income Net Other | -86.2 M | -90.6 M | |
| Interest Income | 67 M | 70 M | |
| Net Interest Income | -512 M | -537.6 M | |
| Change To Netincome | -69 M | -72.5 M | |
| Net Loss | (2.42) | (2.30) | |
| Income Quality | (1.50) | (1.43) | |
| Net Income Per E B T | 1.02 | 0.97 |
Goodyear Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Goodyear Tire. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Goodyear Tire position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Goodyear Tire's important profitability drivers and their relationship over time.
Use Goodyear Tire in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Goodyear Tire position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Goodyear Tire will appreciate offsetting losses from the drop in the long position's value.Goodyear Tire Pair Trading
Goodyear Tire Rubber Pair Trading Analysis
The ability to find closely correlated positions to Goodyear Tire could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Goodyear Tire when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Goodyear Tire - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Goodyear Tire Rubber to buy it.
The correlation of Goodyear Tire is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Goodyear Tire moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Goodyear Tire Rubber moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Goodyear Tire can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Goodyear Tire position
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Additional Tools for Goodyear Stock Analysis
When running Goodyear Tire's price analysis, check to measure Goodyear Tire's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Goodyear Tire is operating at the current time. Most of Goodyear Tire's value examination focuses on studying past and present price action to predict the probability of Goodyear Tire's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Goodyear Tire's price. Additionally, you may evaluate how the addition of Goodyear Tire to your portfolios can decrease your overall portfolio volatility.