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.