Titan International Inc (TWI)

Working capital turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	1,783,068	1,913,292	2,040,465	2,131,996	2,134,021	2,121,127	2,038,908	1,900,559	1,762,714	1,611,529	1,464,134	1,321,222	1,231,573	1,201,559	1,240,856	1,334,958	1,427,099	1,488,712	1,531,408	1,568,067
Total current assets	US$ in thousands	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	651,465	732,394	786,213	837,473
Total current liabilities	US$ in thousands	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	327,153	365,948	392,622	439,244
Working capital turnover		3.53	3.78	3.84	4.24	4.60	4.94	4.72	4.53	4.86	4.48	4.08	3.96	3.74	3.72	3.62	4.50	4.40	4.06	3.89	3.94

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,783,068K ÷ ($876,781K – $372,375K)
= 3.53

The working capital turnover ratio for Titan International, Inc. has been showing a decreasing trend over the past eight quarters. The ratio decreased from 4.68 in Q4 2022 to 3.61 in Q4 2023. This indicates that the company's ability to efficiently utilize its working capital to generate revenue has declined over this period.

A working capital turnover ratio of less than 1 suggests that the company is not efficiently using its working capital to generate revenue. In this case, all the ratios provided are above 1, indicating that Titan International is effectively utilizing its working capital to generate revenue. However, the decreasing trend suggests that the company may be facing challenges in managing its working capital efficiently.

The company should evaluate its working capital management strategies to improve this ratio and ensure that it can sustain its operations effectively in the future. It is essential for the company to closely monitor its working capital turnover ratio to ensure optimal utilization of resources and maintain financial stability.