Titan International Inc (TWI)

Payables 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
Payables	US$ in thousands	201,201	263,376	278,099	167,210	158,647
Payables turnover		8.27	7.43	6.06	7.75	9.26

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $1,663,490K ÷ $201,201K
= 8.27

The payables turnover ratio for Titan International, Inc. has been fluctuating over the past five years. The trend indicates that the company's ability to manage its payables effectively has varied. In 2023, the payables turnover ratio significantly increased to 7.53 compared to the previous year's 6.87. This suggests that Titan International, Inc. was able to pay off its suppliers more frequently during the year, which may indicate improved liquidity or working capital management.

However, it is important to note that while the payables turnover ratio increased in 2023, it remains lower than the ratio in 2019 when it was 8.32. This indicates a potential change in payment terms with suppliers or a shift in the company's purchasing strategy. Overall, a higher payables turnover ratio generally reflects a more efficient management of trade payables, but further analysis is needed to understand the specific reasons behind the fluctuations in the ratio over the years.