Titan International Inc (TWI)

Fixed asset turnover

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	1,783,068	1,913,292	2,040,465	2,131,996	2,134,021	2,121,127	2,038,908	1,900,559	1,762,714	1,611,529	1,464,134	1,321,222	1,231,573	1,201,559	1,240,856	1,334,958	1,427,099	1,488,712	1,531,408	1,568,067
Property, plant and equipment	US$ in thousands	321,694	302,481	307,612	300,447	296,605	287,618	296,832	298,285	301,109	302,590	310,210	307,620	319,854	324,959	337,646	344,078	367,595	366,121	375,997	378,684
Fixed asset turnover		5.54	6.33	6.63	7.10	7.19	7.37	6.87	6.37	5.85	5.33	4.72	4.29	3.85	3.70	3.68	3.88	3.88	4.07	4.07	4.14

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $1,783,068K ÷ $321,694K
= 5.54

The fixed asset turnover ratio measures a company's ability to generate sales from its investment in fixed assets. A higher ratio indicates more efficient utilization of fixed assets to generate sales revenue.

Looking at the trend for Titan International, Inc., we see a consistent decrease in fixed asset turnover over the past four quarters. The ratio has declined from 7.31 in Q4 2022 to 5.66 in Q4 2023. This indicates that the company is generating less sales revenue for every dollar invested in fixed assets.

Although the ratio fluctuated over the quarters, it has been on a downward trend overall, suggesting potential inefficiencies in the utilization of fixed assets to generate sales. It would be advisable for the company to evaluate its fixed asset management strategies and consider ways to improve asset productivity in order to enhance profitability and operational efficiency.