Titan International Inc (TWI)
Inventory turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 1,588,135 | 1,577,622 | 1,524,150 | 1,467,703 | 1,515,951 | 1,617,147 | 1,724,528 | 1,792,489 | 1,808,670 | 1,800,760 | 1,747,761 | 1,661,688 | 1,542,673 | 1,418,529 | 1,301,894 | 1,180,991 | 1,144,994 | 1,127,435 | 1,172,785 | 1,268,808 |
| Inventory | US$ in thousands | 437,192 | 453,632 | 464,650 | 504,945 | 365,156 | 360,142 | 378,258 | 388,980 | 397,223 | 412,967 | 422,764 | 424,200 | 392,615 | 373,012 | 345,339 | 313,472 | 293,679 | 284,231 | 294,537 | 306,071 |
| Inventory turnover | 3.63 | 3.48 | 3.28 | 2.91 | 4.15 | 4.49 | 4.56 | 4.61 | 4.55 | 4.36 | 4.13 | 3.92 | 3.93 | 3.80 | 3.77 | 3.77 | 3.90 | 3.97 | 3.98 | 4.15 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,588,135K ÷ $437,192K
= 3.63
The inventory turnover of Titan International Inc has shown fluctuations over the past few years based on the provided data. The inventory turnover ratio indicates how effectively the company manages its inventory levels by measuring how many times inventory is sold and replaced over a specific period. A higher inventory turnover ratio generally signifies efficient inventory management.
From March 31, 2020, to March 31, 2022, the inventory turnover remained relatively stable around 4 times, indicating a consistent pace of inventory turnover. However, there was a slight decrease to 3.77 times in June 30, 2022, before starting to increase again.
The inventory turnover ratio peaked at 4.61 times on March 31, 2023, but then started to decline gradually, reaching 3.63 times by December 31, 2024. This downward trend could suggest potential issues with managing inventory levels efficiently or changes in sales patterns impacting inventory turnover.
It is essential for Titan International Inc to analyze the reasons behind fluctuations in inventory turnover to optimize inventory levels, avoid overstocking, and ensure a balance between supply and demand. Additionally, improving inventory turnover ratios can enhance working capital management and overall operational efficiency.
Peer comparison
Dec 31, 2024
Dec 31, 2024