Titan International Inc (TWI)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 100.48 | 104.95 | 111.27 | 125.57 | 87.92 | 81.29 | 80.06 | 79.21 | 80.16 | 83.71 | 88.29 | 93.18 | 92.89 | 95.98 | 96.82 | 96.88 | 93.62 | 92.02 | 91.67 | 88.05 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 100.48 | 104.95 | 111.27 | 125.57 | 87.92 | 81.29 | 80.06 | 79.21 | 80.16 | 83.71 | 88.29 | 93.18 | 92.89 | 95.98 | 96.82 | 96.88 | 93.62 | 92.02 | 91.67 | 88.05 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 100.48 + — – —
= 100.48
The cash conversion cycle (CCC) of Titan International Inc has fluctuated over the past few years, reflecting the efficiency of its working capital management. The CCC represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
Between March 31, 2020, and September 30, 2021, Titan International Inc saw a gradual increase in its CCC from 88.05 days to 95.98 days, indicating a potential deterioration in its cash conversion efficiency. However, the CCC then decreased significantly to 80.16 days by December 31, 2022, suggesting an improvement in working capital management.
Subsequently, the CCC increased slightly to 87.92 days by December 31, 2023, before experiencing a sharp rise to 125.57 days by March 31, 2024. This significant increase may imply challenges in managing inventory levels, collecting receivables, or optimizing payment terms with creditors.
By June 30, 2024, the CCC decreased to 111.27 days, showing some recovery in cash conversion efficiency. However, a further decline was observed by December 31, 2024, when the CCC reduced to 100.48 days.
Overall, the trend in Titan International Inc's CCC suggests fluctuations in its working capital management effectiveness. It is crucial for the company to focus on optimizing inventory levels, streamlining receivables collection, and managing payables efficiently to enhance its cash conversion cycle and maintain healthy liquidity levels.
Peer comparison
Dec 31, 2024