Titan International Inc (TWI)

Liquidity ratios

	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
Current ratio	2.35	2.38	2.40	2.33	2.35	2.35	2.32	2.07	2.04	1.91	1.87	1.85	1.80	1.82	1.87	1.87	2.00	2.03	2.15	1.87
Quick ratio	0.51	0.53	0.49	0.41	0.60	0.57	0.49	0.35	0.36	0.25	0.23	0.20	0.22	0.22	0.23	0.25	0.36	0.31	0.27	0.18
Cash ratio	0.51	0.53	0.49	0.41	0.60	0.57	0.49	0.35	0.36	0.25	0.23	0.20	0.22	0.22	0.23	0.25	0.36	0.31	0.27	0.18

Titan International Inc's current ratio has been relatively stable over the past few years, ranging between 1.80 and 2.40. This indicates that the company has a comfortable level of current assets to cover its current liabilities.

In terms of the quick ratio, Titan International Inc's liquidity position improved significantly from 0.18 in March 2020 to 0.51 in December 2024. This shows an increasingly strong ability to meet its short-term obligations using only its most liquid assets.

The cash ratio, which represents the most stringent liquidity measure, also displays an upward trend over the years, reaching 0.51 in December 2024. This indicates that the company has a sufficient amount of cash and cash equivalents to cover its current liabilities without relying on inventory or receivables.

Overall, Titan International Inc's liquidity ratios demonstrate a positive trend, reflecting an improving ability to meet its short-term obligations with ease.

Additional liquidity measure

		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
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

The cash conversion cycle of Titan International Inc has shown fluctuations over the analyzed period, reflecting the company's ability to efficiently convert its resources into cash. The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash inflows from sales.

From March 31, 2020, to June 30, 2022, the cash conversion cycle generally decreased, indicating an improvement in the company's efficiency in managing its working capital. However, there was an uptick in the cycle in the subsequent periods ending in March 31, 2023, which is worth noting.

The company showed a significant increase in the cash conversion cycle from March 31, 2023, to March 31, 2024, reaching 125.57 days, which may suggest challenges in converting assets into cash efficiently or potential issues with inventory management.

From June 30, 2024, there was a notable improvement in the cash conversion cycle, which decreased to 100.48 days by December 31, 2024. This improvement may indicate enhanced working capital management or a more streamlined process in converting resources into cash.

Overall, fluctuations in the cash conversion cycle should be closely monitored, as they can indicate shifts in the company’s operational efficiency and effectiveness in managing working capital. It is important for Titan International Inc to focus on optimizing its cash conversion cycle to ensure liquidity and operational stability in the long run.