Titan International Inc (TWI)

Inventory 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
Cost of revenue (ttm)	US$ in thousands	1,663,468	1,762,912	1,869,070	1,937,942	1,966,833	1,958,791	1,906,106	1,817,630	1,685,279	1,573,505	1,457,733	1,331,393	1,293,652	1,262,371	1,309,243	1,413,631	1,468,453	1,512,714	1,533,826	1,553,268
Inventory	US$ in thousands	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	333,356	351,871	385,368	412,238
Inventory turnover		4.56	4.90	4.94	4.98	4.95	4.74	4.51	4.28	4.29	4.22	4.22	4.25	4.40	4.44	4.45	4.62	4.41	4.30	3.98	3.77

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,663,468K ÷ $365,156K
= 4.56

The inventory turnover for Titan International, Inc. has shown a consistent trend of improvement over the past eight quarters, indicating the company's efficiency in managing its inventory. The turnover ratio has increased gradually from 3.92 in Q1 2022 to 4.15 in Q4 2023.

A high inventory turnover ratio signifies that Titan International is selling its inventory quickly, which is a positive sign for the company's financial health. This suggests that the company is efficiently managing its inventory levels and turning over its inventory more frequently within a given time period.

The steady increase in the inventory turnover ratio from quarter to quarter indicates that Titan International has been successful in optimizing its inventory management practices, which can lead to reduced carrying costs and improved cash flows. This improvement may be attributed to effective inventory planning, demand forecasting, and inventory control measures implemented by the company.

Overall, the upward trend in Titan International's inventory turnover ratio reflects the company's ability to efficiently manage its inventory levels, meet customer demand, and generate sales, which are essential factors contributing to its operational performance and financial sustainability.