Titan International Inc (TWI)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	1,663,490	1,956,160	1,685,540	1,295,660	1,469,460
Inventory	US$ in thousands	365,156	397,223	392,615	293,679	333,356
Inventory turnover		4.56	4.92	4.29	4.41	4.41

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $1,663,490K ÷ $365,156K
= 4.56

The inventory turnover ratio for Titan International, Inc. has fluctuated over the past five years, ranging from 3.85 to 4.55. A higher inventory turnover ratio indicates that the company is selling its inventory more efficiently.

In 2023, the inventory turnover ratio decreased slightly to 4.15 compared to 4.55 in 2022. This could imply that the company took longer to sell its inventory in 2023, possibly due to factors such as slower sales, excess inventory levels, or changes in customer demand.

Despite the slight decline in 2023, Titan International, Inc. has generally maintained a healthy inventory turnover ratio above 3.0, which suggests effective inventory management practices. However, it is important for the company to monitor and analyze the reasons behind the fluctuations in the ratio to optimize inventory levels and cash flow.