Titan International Inc (TWI)
Working capital 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 |
| Total current assets | US$ in thousands | 876,781 | 909,628 | 813,304 | 658,599 | 651,465 |
| Total current liabilities | US$ in thousands | 372,375 | 446,161 | 450,813 | 329,711 | 327,153 |
| Working capital turnover | 3.53 | 4.60 | 4.86 | 3.75 | 4.38 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,780,190K ÷ ($876,781K – $372,375K)
= 3.53
The working capital turnover of Titan International, Inc. has fluctuated over the past five years. In 2021, the company had the highest working capital turnover of 4.91, indicating that it generated $4.91 in revenue for every $1 of working capital invested. This was followed by a decline in 2022 to 4.68 and further in 2023 to 3.61.
The decreasing trend in working capital turnover from 2021 to 2023 suggests that the company may be less efficient in utilizing its working capital to generate sales revenue. A lower working capital turnover ratio can indicate potential issues with inventory management, collection of receivables, or managing payables effectively.
Overall, monitoring the working capital turnover ratio can provide insights into how effectively Titan International, Inc. is managing its working capital to support its operations and generate revenue.
Peer comparison
Dec 31, 2023