Question

Evaluate Return on Equity for "The Good Year Tire Company" NASDAQ: GT for the last three years using the DuPont analysis.

1. Find ROE, Net profit margin (listed as net margin), asset turnover, financial leverage for the last three years for your company. You also may use debt/equity ratio in your analysis. Present the ratios as the table(s).
   GOODYEAR TIRE & RUBBER CO (GT) CashFlowFlag INCOME STATEMENT Fiscal year ends in December. USD in thousands except per share data 2013-12 2014-12 2015-12 2016-12 2017-12 TTM 19540000 15422000 4118000 18138000 13906000 4232000 16443000 Cost of revenue Gross profit Operating expenses 15158000 10972000 4186000 15377000 11719000 15670000 12073000 3597000 4279000 Sales, General and administrative Other operating expenses Total operating expenses Operating income 2758000 2720000 2614000 114000 2728000 1551000 2407000 210000 2617000 1569000 2302000 135000 2437000 1221000 2334000 73000 2407000 1190000 2816000 1302000 2815000 1417000 Interest Expense Other income (expense) Income before taxes 392000 97000 428000 302000 687000 412000 531000 608000 372000 10000 1207000 335000 8000 878000 311000 217000 1096000 Provision for income taxes 138000 1834000 2521000 69000 232000 77000 1284000 513000 588000 Net income from continuing operations 365000 508000 -46000 629000 29000 20000 1264000 21000 487000 Net income Preferred dividend Net income available to commorn shareholders 2452000 307000 600000 2445000 1264000 487000 Earnings per share Basic Weighted average shares outstanding Basic 268000 279000 269000 273000 239250 242500 263000 277000 253000 EBITDA 1927000 1847000 1718000 2306000 2191000
   

Answer 1