Titan International Inc (TWI)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 2.35 | 2.04 | 1.80 | 2.00 | 1.99 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $876,781K ÷ $372,375K
= 2.35
The current ratio of Titan International, Inc. has shown a positive trend over the past five years, reflecting the company's ability to meet its short-term obligations with its current assets. The ratio has improved from 1.97 in 2019 to 2.35 in 2023.
A current ratio above 1 indicates that the company has more current assets than current liabilities, suggesting strong liquidity and financial health. Titan International's current ratio has consistently been above 1 over the five-year period, indicating that the company has had a sufficient level of current assets to cover its short-term liabilities.
The current ratio of 2.35 in 2023 signifies that Titan International had $2.35 in current assets for every dollar of current liabilities, indicating a healthy liquidity position. This implies that the company is well-positioned to cover its short-term financial obligations and fund its day-to-day operations.
Overall, the increasing trend in Titan International's current ratio over the past five years suggests a strengthening liquidity position and financial stability, which could potentially enhance the company's ability to navigate any short-term financial challenges.
Peer comparison
Dec 31, 2023