Titan International Inc (TWI)

Gross profit margin

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Gross profit (ttm) US$ in thousands 257,802 274,941 282,209 287,662 305,849 324,220 345,780 369,538 360,710 346,530 319,189 271,006 237,542 200,918 171,943 140,340 114,319 106,760 102,543 110,984
Revenue (ttm) US$ in thousands 1,845,937 1,852,563 1,806,359 1,755,365 1,821,800 1,941,367 2,070,308 2,162,027 2,169,380 2,147,290 2,066,950 1,932,694 1,780,215 1,619,447 1,473,837 1,321,331 1,259,313 1,234,195 1,275,328 1,379,792
Gross profit margin 13.97% 14.84% 15.62% 16.39% 16.79% 16.70% 16.70% 17.09% 16.63% 16.14% 15.44% 14.02% 13.34% 12.41% 11.67% 10.62% 9.08% 8.65% 8.04% 8.04%

December 31, 2024 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $257,802K ÷ $1,845,937K
= 13.97%

Titan International Inc's gross profit margin has shown a positive trend over the past few years, indicating improved efficiency in generating profits from sales. The margin increased steadily from 8.04% in March 2020 to 16.79% in December 2023. However, there was a slight decline in the following periods, with the margin decreasing to 13.97% by December 2024.

The peak of 17.09% in March 2023 represented the highest level of gross profit margin during the period under review, highlighting a strong performance in managing production costs and pricing strategies. Despite the subsequent fluctuations, the company maintained a double-digit gross profit margin for most of the observed quarters, demonstrating its ability to efficiently control production and operational expenses relative to its revenue.

The decrease in the margin towards the end of the period could indicate potential challenges or changes in the business environment impacting cost structures or sales revenues. It is important for Titan International Inc to closely monitor and address these factors to sustain healthy profitability levels in the future.