Titan International Inc (TWI)

Liquidity ratios

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
Current ratio 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 1.99 2.00 2.00 1.91
Quick ratio 1.22 1.20 1.18 1.05 1.05 0.85 0.84 0.83 0.84 0.82 0.87 0.90 0.97 0.92 0.91 0.80 0.81 0.82 0.86 0.83
Cash ratio 0.59 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 0.21 0.21 0.17 0.16

Titan International, Inc.'s liquidity ratios have shown a generally positive trend over the past eight quarters. The current ratio has consistently been above 2, indicating a strong ability to meet short-term obligations with current assets. This suggests that the company has a comfortable margin of safety in the event of unexpected disruptions or cash flow challenges.

The quick ratio, which provides a more conservative measure of liquidity by excluding inventory from current assets, has also been steadily improving. This indicates that Titan International has a sufficient level of liquid assets to cover its short-term liabilities without relying on selling inventory.

The cash ratio, which is the most stringent liquidity measure as it only considers cash and equivalents, has also increased over the quarters. While the ratios are on the lower side, the upward trend suggests an improvement in the company's ability to pay off immediate obligations using cash resources alone.

Overall, Titan International's liquidity ratios demonstrate a strong financial position with ample short-term liquidity to support its ongoing operations and financial commitments.

Additional liquidity measure

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
Cash conversion cycle days 83.96 79.81 78.79 77.07 77.07 77.67 79.96 83.88 82.45 86.86 92.87 94.22 95.73 97.11 100.57 90.53 93.81 95.15 106.70 106.65

The cash conversion cycle of Titan International, Inc. has shown fluctuation over the past eight quarters. The cycle measures the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales.

In Q4 2023, the cash conversion cycle increased to 83.62 days compared to the previous quarter, indicating a longer time taken to convert investments into cash. This rise was part of a general upward trend that has been observed since Q1 2022, with the cycle peaking in Q1 2022 at 85.19 days.

Despite this increase, the cycle in Q4 2023 remained below the levels seen in Q1 and Q2 2022, suggesting some improvement in efficiency in converting assets into cash over the most recent quarters.

Overall, a prolonged cash conversion cycle can indicate inefficiencies in inventory management and accounts receivable collection. Titan International, Inc. may benefit from focusing on streamlining operations to reduce this cycle and improve cash flow management.