Titan International Inc (TWI)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 148,727 | 205,802 | 85,175 | -35,351 | -28,432 |
| Total assets | US$ in thousands | 1,289,240 | 1,284,630 | 1,182,680 | 1,031,880 | 1,114,310 |
| Operating ROA | 11.54% | 16.02% | 7.20% | -3.43% | -2.55% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $148,727K ÷ $1,289,240K
= 11.54%
The operating return on assets (ROA) for Titan International, Inc. has shown fluctuations over the past five years. In 2023, the operating ROA was 11.54%, which decreased from 16.02% in 2022 but improved significantly compared to the prior two years. This suggests that in 2023, the company generated operating income of 11.54% for each dollar of assets it owned.
The positive trend in operating ROA from 2020 to 2023 indicates an improvement in the company's operational efficiency and profitability. The negative operating ROA figures in 2020 and 2019 (-1.99% and -2.55% respectively) suggest that during those years, the company's operating income was inadequate to cover the asset base, resulting in inefficiency or losses on operations.
Overall, the improvement in operating ROA from negative figures in 2019 and 2020 to positive figures in 2021, 2022, and 2023 reflects a positive trajectory for Titan International, Inc. It indicates that the company has been able to generate higher operating income relative to its asset base, which is a positive sign of financial health and operational effectiveness.
Peer comparison
Dec 31, 2023