Titan International Inc (TWI)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,780,190 | 2,134,020 | 1,762,710 | 1,231,990 | 1,420,630 |
| Property, plant and equipment | US$ in thousands | 321,694 | 296,605 | 301,109 | 319,854 | 367,595 |
| Fixed asset turnover | 5.53 | 7.19 | 5.85 | 3.85 | 3.86 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,780,190K ÷ $321,694K
= 5.53
Titan International, Inc.'s fixed asset turnover has shown some fluctuations over the past five years. The ratio was at its highest in 2022 at 7.31 and its lowest in 2019 at 3.87. This ratio indicates how effectively the company is generating revenue from its investments in fixed assets. A higher fixed asset turnover generally implies better efficiency in utilizing fixed assets to generate sales. However, a declining trend from 2022 to 2023 may suggest a potential decrease in efficiency in utilizing fixed assets to generate revenue. It would be beneficial for the company to further analyze the reasons behind this fluctuation to improve operational efficiency and optimize the utilization of its fixed assets.
Peer comparison
Dec 31, 2023