Goodyear India Experiences Quality Grade Change Amid Mixed Financial Performance Trends

Goodyear India has recently undergone an evaluation revision, reflecting a shift in its financial performance metrics. The company, operating in the Tyres & Rubber Products industry, has demonstrated a sales growth rate of 10.51% over the past five years. However, its EBIT growth has shown a decline of 7.89%, which raises concerns about profitability trends.
In terms of financial stability, Goodyear India maintains a strong EBIT to interest ratio of 29.80, indicating a solid ability to cover interest expenses. The company also exhibits a low debt to EBITDA ratio of 0.17 and a net debt to equity ratio of 0.00, suggesting minimal leverage and a strong balance sheet. The tax ratio stands at 26.57%, while the dividend payout ratio is notably high at 100.03%, indicating a commitment to returning profits to shareholders.

When compared to its peers, Goodyear India’s performance appears mixed. While it has a competitive return on capital employed (ROCE) of 34.72% and return on equity (ROE) of 14.85%, its stock returns over various periods have lagged behind the broader market, particularly over the longer term. This context highlights the challenges faced by Goodyear India in maintaining its market position amidst fluctuating performance metrics.