Titan International Inc (TWI)

Operating return on assets (Operating ROA)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Operating income	US$ in thousands	33,184	148,727	205,802	85,175	-16,552
Total assets	US$ in thousands	1,584,950	1,289,240	1,284,630	1,182,680	1,031,880
Operating ROA		2.09%	11.54%	16.02%	7.20%	-1.60%

December 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $33,184K ÷ $1,584,950K
= 2.09%

Titan International Inc's operating return on assets (operating ROA) has shown significant fluctuations over the past five years.

In December 31, 2020, the operating ROA was -1.60%, indicating that the company's operating income generated from its assets was negative, which could be a concerning sign.

However, there was a notable improvement in the operating ROA in the subsequent years. By December 31, 2021, it increased to 7.20%, suggesting a positive growth in the operating income generated from its assets.

The trend continued to improve in December 31, 2022, where the operating ROA surged to 16.02%, indicating that the company was effectively utilizing its assets to generate operating income.

There was a slight decline in the operating ROA by December 31, 2023, which stood at 11.54%, but it still remained at a relatively high level compared to the earlier years.

By December 31, 2024, the operating ROA dropped to 2.09%, reflecting a decrease in the operating income generated from its assets.

Overall, the fluctuating trend in Titan International Inc's operating ROA indicates varying levels of efficiency in utilizing its assets to generate operating income over the five-year period. It would be essential for the company to closely monitor and manage its asset utilization to maintain or improve its operating ROA in the future.