Titan International Inc (TWI)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 17.18% | 16.90% | 13.48% | 9.28% | 9.08% |
| Operating profit margin | 8.35% | 9.64% | 4.83% | -2.87% | -2.00% |
| Pretax margin | 5.89% | 9.35% | 2.88% | -4.34% | -3.16% |
| Net profit margin | 4.42% | 8.26% | 2.81% | -4.90% | -3.41% |
The profitability ratios of Titan International, Inc. show a mixed performance over the five-year period from 2019 to 2023. Starting with the gross profit margin, there has been a steady improvement from 8.90% in 2019 to 16.79% in 2023. This indicates that the company has been able to effectively manage its production costs and has seen an overall increase in profitability at the gross level.
Moving on to the operating profit margin, it shows fluctuations over the years. There was a notable increase from -1.96% in 2019 to 9.49% in 2022 but then a slight decrease to 8.16% in 2023. This suggests that while the company has been able to generate more profit from its core operations, there may have been some challenges in maintaining or improving this margin consistently.
The pretax margin also reflects a mixed trend, with improvements in recent years. From a negative percentage in 2019 and 2020, the company managed to achieve a pretax margin of 6.02% in 2023. This indicates better overall profitability before considering taxes.
Lastly, the net profit margin, which is a key indicator of a company's overall profitability after all expenses have been taken into account, also shows variability. There was a significant improvement from a negative percentage in 2019 to 8.13% in 2022, before declining slightly to 4.32% in 2023.
In conclusion, while Titan International, Inc. has shown positive developments in its profitability ratios over the years, there are fluctuations that suggest some volatility in its financial performance. It would be important for the company to focus on sustainable cost management and revenue generation strategies to ensure consistent profitability in the future.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 11.54% | 16.02% | 7.20% | -3.43% | -2.55% |
| Return on assets (ROA) | 6.11% | 13.72% | 4.19% | -5.85% | -4.35% |
| Return on total capital | 26.46% | 60.14% | 31.99% | -12.77% | -4.78% |
| Return on equity (ROE) | 16.86% | 46.24% | 21.62% | -33.69% | -20.62% |
Titan International, Inc.'s profitability ratios show mixed performance over the past five years.
Operating return on assets (Operating ROA) indicates the company's ability to generate profit from its assets before interest and taxes. In 2023, the Operating ROA decreased to 11.54% from 16.02% in 2022, suggesting a slight decline in efficiency. However, compared to 2021 and prior years, the 2023 figure still reflects a relatively healthy profitability level.
Return on assets (ROA) decreased in 2023 to 6.11% from 13.72% in 2022. This ratio measures the overall profitability of the company by examining how efficiently it is using its assets to generate earnings. The decline in ROA suggests that Titan International may not be as efficient in generating profit from its total assets in 2023 compared to the previous year.
Return on total capital increased to 16.78% in 2023 from 24.99% in 2022. This ratio evaluates how well the company is utilizing both its equity and debt capital to generate profits. The decline in this ratio suggests that Titan International's profitability from its total capital declined in 2023 compared to the previous year.
Return on equity (ROE) dropped to 16.86% in 2023 from 46.24% in 2022. ROE measures the return generated on shareholders' equity. The decrease in ROE may indicate that Titan International's profitability in 2023 was lower compared to the previous year, possibly due to different factors affecting the company's financial structure.
Overall, the profitability ratios of Titan International, Inc. in 2023 show a mixed performance compared to the previous year, indicating areas where the company may need to focus to improve its profitability and efficiency in utilizing its assets and capital.