Titan International Inc (TWI)

Cash ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cash and cash equivalents US$ in thousands 195,974 220,251 159,577 98,108 117,431
Short-term investments US$ in thousands — 1,338 1,388 1,296 651
Total current liabilities US$ in thousands 387,358 372,375 446,161 450,813 329,711
Cash ratio 0.51 0.60 0.36 0.22 0.36

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($195,974K + $—K) ÷ $387,358K
= 0.51

The cash ratio measures a company's ability to cover its short-term liabilities using its cash and cash equivalents. In the case of Titan International Inc, the cash ratio fluctuated over the past five years. It stood at 0.36 on December 31, 2020, decreased to 0.22 by December 31, 2021, then increased to 0.36 again by December 31, 2022. The ratio experienced a significant improvement to 0.60 on December 31, 2023, indicating a stronger ability to meet short-term obligations. However, it slightly decreased to 0.51 by the end of December 31, 2024. Overall, the company's cash ratio demonstrates varying levels of liquidity over the years, with recent improvements suggesting a better position to cover short-term liabilities.