Titan International Inc (TWI)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 3.63 | 4.15 | 4.55 | 3.93 | 3.90 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 3.52 | 3.61 | 4.68 | 4.91 | 3.83 |
Titan International Inc's inventory turnover has been gradually increasing over the years, indicating that the company is selling its inventory more efficiently. The inventory turnover ratio went from 3.90 in 2020 to 4.55 in 2022 before slightly decreasing to 3.63 in 2024. Generally, a higher inventory turnover ratio is favorable as it shows that the company is managing its inventory well and not oversupplying or holding excessive stock.
On the other hand, the receivables turnover ratio data is not provided, indicating that there is insufficient information to assess how well the company is collecting its accounts receivable from customers. A higher receivables turnover ratio would imply that the company is collecting payments from its customers quickly.
Similarly, data for payables turnover ratio is not available, so it's challenging to evaluate how quickly the company is paying its suppliers. A higher payables turnover ratio would suggest that the company is efficiently managing its payable obligations.
The working capital turnover ratio shows the efficiency of the company in utilizing its working capital to generate sales. Titan International Inc's working capital turnover ratio fluctuated over the years, starting at 3.83 in 2020, peaking at 4.91 in 2021, and then slightly declining to 3.52 in 2024. A higher working capital turnover ratio indicates that the company is effectively using its working capital to support its operations and sales activities.
Overall, while Titan International Inc has shown improvements in inventory turnover and working capital turnover, the lack of data for receivables and payables turnover ratios limits a comprehensive assessment of the company's activity ratios. Evaluating all activity ratios together would provide a more holistic view of the company's operational efficiency.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 100.48 | 87.92 | 80.16 | 92.89 | 93.62 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
Based on the provided data for Titan International Inc, let's analyze the activity ratios:
1. Days of Inventory on Hand (DOH):
- The trend in the DOH over the years shows fluctuations. The company had 93.62 days of inventory on hand as of December 31, 2020, which decreased to 92.89 days by December 31, 2021. Subsequently, there was a significant drop to 80.16 days by December 31, 2022, followed by an increase to 87.92 days by December 31, 2023, and a further rise to 100.48 days by December 31, 2024.
- A lower number of days of inventory on hand generally indicates efficient inventory management, whereas a higher number may suggest overstocking or potential inventory obsolescence. The company experienced fluctuations in managing its inventory over the years.
2. Days of Sales Outstanding (DSO):
- The DSO data is not provided, which makes it challenging to assess the efficiency of the company in collecting accounts receivable. Without this information, it is difficult to gauge how quickly Titan International Inc collects revenue from its credit sales.
3. Number of Days of Payables:
- Similar to DSO, the data for the number of days of payables is not available, making it impossible to evaluate how long the company takes to pay its suppliers. Timely payments to suppliers can impact credit relationships and bargaining power with vendors.
In conclusion, based on the available information, we can see fluctuations in the Days of Inventory on Hand for Titan International Inc, indicating varying levels of efficiency in managing inventory. However, further insight into Days of Sales Outstanding and Number of Days of Payables would provide a more comprehensive understanding of the company's overall liquidity and efficiency in managing working capital.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 7.10 | 5.53 | 3.94 |
| Total asset turnover | 1.16 | 1.41 | 1.69 | 1.51 | 1.22 |
The Fixed Asset Turnover ratio for Titan International Inc has shown a positive trend over the years, increasing from 3.94 in 2020 to 7.10 in 2022. This indicates that the company is generating more revenue relative to its fixed assets, which is a positive sign of efficient asset utilization. However, the ratio data is missing for 2023 and 2024, so it is unclear if this trend will continue.
In contrast, the Total Asset Turnover ratio for Titan International Inc has been more variable. It increased from 1.22 in 2020 to 1.69 in 2022, suggesting an improvement in the company's ability to generate sales from its total assets. However, the ratio decreased to 1.16 in 2024, indicating a potential decline in efficiency in utilizing total assets to generate revenue.
Overall, the increasing trend in Fixed Asset Turnover and the fluctuating trend in Total Asset Turnover suggest that Titan International Inc has been effectively managing its fixed assets but may need to focus on optimizing its total asset utilization in the coming years.