Titan International Inc (TWI)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | 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 |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 387,358 | 372,375 | 446,161 | 450,813 | 329,711 |
| Quick ratio | 0.51 | 0.60 | 0.36 | 0.22 | 0.36 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($195,974K
+ $—K
+ $—K)
÷ $387,358K
= 0.51
The quick ratio, also known as the acid-test ratio, provides insight into a company's ability to meet its short-term obligations with its most liquid assets.
Looking at the quick ratio trend of Titan International Inc from December 31, 2020, to December 31, 2024, we observe fluctuations in the ratio. In 2020, the quick ratio stood at 0.36, indicating that for every dollar of current liabilities, the company had $0.36 in quick assets.
However, the quick ratio decreased to 0.22 by the end of 2021, suggesting a potential liquidity challenge as the company may struggle to cover its short-term liabilities using its quick assets alone.
Subsequently, there was an improvement in the quick ratio to 0.36 by the end of 2022, indicating a better ability to meet short-term obligations. This was further enhanced in 2023 with a quick ratio of 0.60, showing a significant increase in liquidity and a stronger financial position.
However, by the end of 2024, the quick ratio decreased slightly to 0.51, suggesting a reduction in the company's ability to cover immediate liabilities with its liquid assets compared to the previous year.
Overall, it is essential for Titan International Inc to monitor and manage its liquidity position effectively to ensure it can comfortably meet its short-term obligations as they become due.
Peer comparison
Dec 31, 2024