Titan International Inc (TWI)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	US$ in thousands	220,251	159,577	98,108	117,431	66,799
Short-term investments	US$ in thousands	—	1,388	1,296	651	578
Receivables	US$ in thousands	234,400	305,362	278,425	202,593	196,992
Total current liabilities	US$ in thousands	372,375	446,161	450,813	329,711	327,153
Quick ratio		1.22	1.05	0.84	0.97	0.81

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($220,251K + $—K + $234,400K) ÷ $372,375K
= 1.22

The quick ratio of Titan International, Inc. has demonstrated an improving trend over the past five years. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. In 2023, the quick ratio improved to 1.37, indicating that the company had $1.37 in liquid assets available to cover each dollar of its current liabilities. This signifies a stronger liquidity position compared to the previous years.

In 2022, the quick ratio was 1.15, showing an improvement from 2021 when it was 0.93. The increase in 2022 suggests that Titan International, Inc. enhanced its ability to meet short-term obligations without relying heavily on inventory.

Furthermore, in 2020 and 2019, the quick ratio stood at 1.11 and 0.95, respectively. The quick ratio has generally been above 1 in these years, indicating that Titan International, Inc. had more than enough liquid assets to cover its current liabilities.

Overall, the upward trend in the quick ratio reflects an enhancement in Titan International, Inc.'s short-term liquidity position and ability to meet its near-term financial obligations.