Titan International Inc (TWI)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,780,190 | 2,134,020 | 1,762,710 | 1,231,990 | 1,420,630 |
| Receivables | US$ in thousands | 234,400 | 305,362 | 278,425 | 202,593 | 196,992 |
| Receivables turnover | 7.59 | 6.99 | 6.33 | 6.08 | 7.21 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $1,780,190K ÷ $234,400K
= 7.59
The receivables turnover ratio for Titan International, Inc. has shown a generally increasing trend over the past five years, indicating an improvement in the company's efficiency in collecting outstanding receivables. The ratio increased from 7.71 in 2019 to 8.27 in 2023.
A higher receivables turnover ratio signifies that the company is collecting its accounts receivable more quickly, which is a positive sign of effective credit management and liquidity. It demonstrates that the company is able to efficiently convert its accounts receivable into cash.
Overall, the improving trend in Titan International's receivables turnover ratio suggests that the company has been successful in managing its credit policies and ensuring timely collection of outstanding balances from its customers.
Peer comparison
Dec 31, 2023