Titan International Inc (TWI)

Working capital turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Revenue (ttm)	US$ in thousands	1,845,937	1,852,563	1,806,359	1,755,365	1,821,800	1,941,367	2,070,308	2,162,027	2,169,380	2,147,290	2,066,950	1,932,694	1,780,215	1,619,447	1,473,837	1,321,331	1,259,313	1,234,195	1,275,328	1,379,792
Total current assets	US$ in thousands	912,037	1,025,740	1,092,480	1,155,140	876,781	881,321	934,254	970,468	909,628	900,647	929,381	911,470	813,304	796,243	772,240	715,565	658,599	638,415	641,201	638,892
Total current liabilities	US$ in thousands	387,358	431,301	454,282	495,063	372,375	374,818	403,246	467,862	446,161	470,952	497,259	491,895	450,813	436,912	413,613	382,246	329,711	315,254	298,571	341,952
Working capital turnover		3.52	3.12	2.83	2.66	3.61	3.83	3.90	4.30	4.68	5.00	4.78	4.61	4.91	4.51	4.11	3.96	3.83	3.82	3.72	4.65

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,845,937K ÷ ($912,037K – $387,358K)
= 3.52

Titan International Inc's working capital turnover has exhibited fluctuations over the period from March 31, 2020, to December 31, 2024. The working capital turnover ratio measures how efficiently the company utilizes its working capital to generate sales revenue.

Initially, the ratio was at 4.65 on March 31, 2020, indicating that the company generated sales 4.65 times the value of its working capital during that period. The ratio fluctuated throughout the years, reaching a peak of 5.00 on September 30, 2022, and a low of 2.66 on March 31, 2024.

Overall, the trend shows that Titan International Inc improved its working capital turnover efficiency from 2020 to 2022, with a steady increase in the ratio. However, there was a noticeable decline in the ratio from March 31, 2023, to December 31, 2024, which could indicate potential inefficiencies in managing working capital or a decrease in sales relative to the working capital investment during that period.

Further analysis would be needed to understand the factors contributing to the fluctuations in the working capital turnover ratio and to assess the company's overall working capital management efficiency.