61 billion / $1.3 million. In this aspect, CTB is a stronger company in comparison with Goodyear, as they are more effectively using their assets to increase sales. ("Cooper Tire and Rubber Annual Report," 2010)
The Debt Ratio
The debt ratio is used by investors to determine the overall risks to the business from: various loans and other financial obligations they have. During times of financial challenges, the total amounts of debt could have an impact on future company's revenues (which may affect the financial strength of the business itself). This ratio is calculated by dividing the total debt into the total amount of assets. Any kind of reading higher than 1.0 indicates that the company has more than enough assets to meets its financial obligations. ("Debt Ratio," 2011) In the case of GT, the company has a debt ratio of .28....
This was determined by dividing $4.475 billion into $15.63 billion. While CTB, has a debt ratio of .90. This was calculated by dividing $21 billion into $23 billion. In this aspect, CTB has lower amounts of debt in comparison with Goodyear. ("Goodyear Tire and Rubber Annual Report," 2010) ("Cooper Tire and Rubber Annual Report," 2010)
The Debt to Equity Ratio
The debt to equity ratio is designed to tell investors how much debt and equity a company is using to finance its expansion. The higher the number is, the greater the chances that an organization has been using its debt to finance their growth. This number is calculated by dividing the total liabilities into the shareholder equity. ("Debt to Equity Ratio," 2011) As far as GT is concerned, the company has a debt to equity ratio of 50.99. This was calculated by dividing
The United Steelworkers struck over the proposed closing, and the strike dragged on for several weeks before being settled, causing problems throughout the company and their customers, as well. The strike began Oct. 5, and over 12,000 workers were involved in the strike. The strike was anticipated, so many retailers were able to stockpile Goodyear tires in an attempt to alleviate the affects of the strike, but smaller retailers,
Gender Discrimination in an Equal Society The case involving Mary as an employee of a construction company who feels that she is discriminated on account of her gender is very similar to the Supreme Court case of Ledbetter v. Goodyear Tire & Rubber Co. case of 2007. Even with this, Mary's situation is more controversial as a consequence of the vagueness associated with her situation. Lilly Ledbetter realized that she was
Tire Industry Tire manufacturing This is an industry analysis of the tire manufacturing industry. It has sources. The Industry's dominant economic features Porters Five Forces -- the rivalry amoung competiting sellers in the industry the potential entry of new competitors -Wining customers over their own substitute products Supplier-seller collaboration and bargaining -Seller-buyer collaboration and bargaining Drivers of change in the industry Companies in the Strongest/Weakest Positions Key Success Factors for Competitive Success The tire manufacturing industry is one of the most diversified and
By choosing to sell through Sears, Goodyear will be relinquishing its brand exclusivity. It will also have to become more sensitive to retail marketing practices and may lose control over its own retail policies. By going with Sears proposal, the company will be accepting a dual distribution option. But this option also means catering to a different clientele. Different channels cater to different kind of customers. Selling through Sears may at
Capital Structure A company's capital structure is the balance of different methods of financing that provides funding for the company's operations. The basic breakdown is between debt and equity, but preferred shares may also factor into the capital structure. Debt includes all forms of liabilities, including both long-term debt and current liabilities. Equity includes both the book value of shares issued and the company's retained earnings. The market value of the
Michelin Tires -- Marketing Analysis Michelin has a unique opportunity to emerge from the financial recession that crippled the tire industry in 2009. Not only did the company survive this downturn, but they are better positioned to increase their market share as the industry rebounds. It was found that the company should further leverage its dedication to environmental sustainability to increase its product diversification. The company has already emerged as a