Financial Statement Project - Goodyear
Goodyear Tire & Rubber Company follows in accordance with Securities and Exchange Commission 's rules and its Regulations, and contains all the related adjustments important to present its result of operations and cash flows and its financial position in the market. In the year of 2015, the Net Sales went to $16443 million but the Net Income for Goodyear and Shareholders went up to $ 307 million. Majorly into Tire manufacturing, its sales and distribution, now Goodyear is expanding its market towards Rubber-related chemicals, useful for various applications globally. Goodyear is into Vehicles service and tire retreading centers with 49 manufacturing facilities available globally in 22 countries, USA - …show more content…
North America being the largest segment in Revenues, development, manufactures, distributes and sales of tires and related products. For achieving all the success, Goodyear needs to have a strong strategy to be followed, and gaining insights from shareholders and the customer reviews. Majorly, the important factors which determine a company’s outstanding is based upon the Policies, Accounting policies, Financial Activities, its mapping. Goodyear has been liberal in showing every profit and revenues to everyone.
Accounting policies are those specific procedures and policies used by a respective company for the preparation of financial statements. Financial Statements preparation and development in conformity and accordance with GAAP-US requires management to make the assumptions and the estimates which will affect the amounts that will be reported later in the consolidated financial statements and its related documents. Further, Management reviews the calculation estimates with the given information. Few of the accounting policies followed by Goodyear are …show more content…
Both the firms are having the net revenues by average receivables value almost same. Both are able to quickly and efficiently collect the outstanding bills.
By Asset turnover value mentioned above, 0.95 and 0.98, they are using their complete assets to generate the revenue. For every 100$ spent, Goodyear gets 95$ revenue whereas Bridgestone receives 98$ which is greater and efficient.
Liquidity Ratios - mainly used by creditors to measure a firm’s ability to meet its short time obligations.
Current Ratio means measure of company’s current assets against its current liabilities. Here, Goodyear has 1.24 whereas Bridgestone has 2.17. This ratio indicates whether the company will be able to pay off its short-term liabilities in an emergency by converting its current assets. Bridgestone is at a better position in this factor than Goodyear.
Quick Ratio gives comparison between cash, accounts receivable and short-term marketable securities to the current liabilities. 0.71 And 1.31 are the values which say that Goodyear can cover 71% of current liabilities by using its all cash-on-hand , converting its short-term marketable securities and monetizing their accounts receivable as compared to
Goodyear Tire & Rubber Company follows in accordance with Securities and Exchange Commission 's rules and its Regulations, and contains all the related adjustments important to present its result of operations and cash flows and its financial position in the market. In the year of 2015, the Net Sales went to $16443 million but the Net Income for Goodyear and Shareholders went up to $ 307 million. Majorly into Tire manufacturing, its sales and distribution, now Goodyear is expanding its market towards Rubber-related chemicals, useful for various applications globally. Goodyear is into Vehicles service and tire retreading centers with 49 manufacturing facilities available globally in 22 countries, USA - …show more content…
North America being the largest segment in Revenues, development, manufactures, distributes and sales of tires and related products. For achieving all the success, Goodyear needs to have a strong strategy to be followed, and gaining insights from shareholders and the customer reviews. Majorly, the important factors which determine a company’s outstanding is based upon the Policies, Accounting policies, Financial Activities, its mapping. Goodyear has been liberal in showing every profit and revenues to everyone.
Accounting policies are those specific procedures and policies used by a respective company for the preparation of financial statements. Financial Statements preparation and development in conformity and accordance with GAAP-US requires management to make the assumptions and the estimates which will affect the amounts that will be reported later in the consolidated financial statements and its related documents. Further, Management reviews the calculation estimates with the given information. Few of the accounting policies followed by Goodyear are …show more content…
Both the firms are having the net revenues by average receivables value almost same. Both are able to quickly and efficiently collect the outstanding bills.
By Asset turnover value mentioned above, 0.95 and 0.98, they are using their complete assets to generate the revenue. For every 100$ spent, Goodyear gets 95$ revenue whereas Bridgestone receives 98$ which is greater and efficient.
Liquidity Ratios - mainly used by creditors to measure a firm’s ability to meet its short time obligations.
Current Ratio means measure of company’s current assets against its current liabilities. Here, Goodyear has 1.24 whereas Bridgestone has 2.17. This ratio indicates whether the company will be able to pay off its short-term liabilities in an emergency by converting its current assets. Bridgestone is at a better position in this factor than Goodyear.
Quick Ratio gives comparison between cash, accounts receivable and short-term marketable securities to the current liabilities. 0.71 And 1.31 are the values which say that Goodyear can cover 71% of current liabilities by using its all cash-on-hand , converting its short-term marketable securities and monetizing their accounts receivable as compared to