Titan International Inc (TWI)

Operating return on assets (Operating ROA)

		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
Operating income (ttm)	US$ in thousands	39,380	77,115	101,283	124,859	148,727	168,911	192,427	239,852	229,424	212,847	185,256	115,652	85,175	45,011	15,303	-11,517	-35,351	-37,034	-42,842	-42,171
Total assets	US$ in thousands	1,584,950	1,686,720	1,734,070	1,813,600	1,289,240	1,257,740	1,305,150	1,344,810	1,284,630	1,247,480	1,289,180	1,269,300	1,182,680	1,144,260	1,127,440	1,071,450	1,031,880	1,016,350	1,031,290	1,060,250
Operating ROA		2.48%	4.57%	5.84%	6.88%	11.54%	13.43%	14.74%	17.84%	17.86%	17.06%	14.37%	9.11%	7.20%	3.93%	1.36%	-1.07%	-3.43%	-3.64%	-4.15%	-3.98%

December 31, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $39,380K ÷ $1,584,950K
= 2.48%

Operating Return on Assets (Operating ROA) is a key financial ratio that measures the efficiency of a company in generating profit from its assets used in its core operations. The data provided for Titan International Inc's Operating ROA from March 31, 2020, to December 31, 2024, shows a fluctuating trend over the period.

- The ratio started in negative territory, indicating that the company's operating earnings were insufficient to cover the assets employed in its operations.
- From March 2021 to June 2022, there was a gradual improvement in the Operating ROA, moving from negative to positive territory, suggesting that the company was able to enhance its operational efficiency and generate more profit relative to its assets.
- There was a significant increase in Operating ROA from June 2022 to December 2022, reaching its peak at 17.86% by the end of the year. This substantial improvement indicates that Titan International Inc effectively utilized its assets to generate higher operating income.
- However, from March 2023 onwards, the Operating ROA started declining, indicating a decrease in the company's ability to generate profit from its assets efficiently.
- By the end of December 2024, the Operating ROA decreased to 2.48%, reflecting a lower return on the assets employed in the company's operations compared to the peak level achieved in 2022.

In conclusion, while Titan International Inc showed improvements in its operational efficiency and profitability by achieving positive Operating ROA during the period, the downward trend in recent quarters suggests a potential need for the company to reassess its asset utilization strategies to maintain sustainable profitability in the future.