Titan International Inc (TWI)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 13.97% | 16.79% | 16.63% | 13.34% | 9.08% |
| Operating profit margin | 1.80% | 8.16% | 9.49% | 4.78% | -1.31% |
| Pretax margin | 0.45% | 6.02% | 9.33% | 2.87% | -4.62% |
| Net profit margin | -0.30% | 4.32% | 8.13% | 2.79% | -5.17% |
Analyzing the profitability ratios of Titan International Inc over the past five years reveals a mixed performance.
The Gross Profit Margin has shown improvement over the years, increasing from 9.08% in December 2020 to 13.34% in December 2021, and further to 16.63% in December 2022. However, there was a slight dip to 16.79% in December 2023, followed by a decrease to 13.97% in December 2024.
The Operating Profit Margin has also displayed a similar trend, with negative performance in December 2020 at -1.31%, steadily increasing to 9.49% in December 2022. However, it decreased to 1.80% in December 2024.
The Pretax Margin experienced fluctuations, starting at -4.62% in December 2020, reaching a peak of 9.33% in December 2022, and then dropping to 0.45% in December 2024.
Lastly, the Net Profit Margin has been inconsistent, indicating a loss of -5.17% in December 2020, but rebounding to 8.13% in December 2022. However, it fell to 4.32% in December 2023, and experienced a slight loss of -0.30% in December 2024.
Overall, the trend in profitability ratios for Titan International Inc shows fluctuations and varying performance levels across the different margin metrics over the five-year period. Management should closely monitor these ratios to understand the factors driving these changes and take appropriate actions to improve overall profitability.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 2.09% | 11.54% | 16.02% | 7.20% | -1.60% |
| Return on assets (ROA) | -0.35% | 6.11% | 13.72% | 4.19% | -6.31% |
| Return on total capital | 9.01% | 27.52% | 60.89% | 36.31% | -15.38% |
| Return on equity (ROE) | -1.12% | 16.86% | 46.24% | 21.62% | -36.30% |
Titan International Inc's profitability ratios have shown varying trends over the past five years.
1. Operating Return on Assets (Operating ROA) has fluctuated significantly, starting at -1.60% in 2020, improving to 16.02% in 2022, and then declining to 2.09% in 2024. This ratio indicates the company's ability to generate operating income from its assets.
2. Return on Assets (ROA) also showed inconsistency, ranging from -6.31% in 2020 to 13.72% in 2022. It decreased to -0.35% in 2024. ROA measures how effectively the company is generating profits from its total assets.
3. Return on Total Capital reflects the overall return earned on all forms of capital employed by the company. The ratio started at a negative 15.38% in 2020, rose to 60.89% in 2022, and then dropped to 9.01% in 2024. This indicates the efficiency of the company in generating returns from its invested capital.
4. Return on Equity (ROE) also demonstrated mixed performance, with a low of -36.30% in 2020, a high of 46.24% in 2022, and a decline to -1.12% in 2024. ROE shows how well the company is utilizing shareholder equity to generate profits for shareholders.
Overall, while Titan International Inc's profitability ratios have shown fluctuations, it is important for the company to focus on sustaining and improving profitability to ensure long-term financial health and shareholder value.