Titan International Inc (TWI)

Pretax margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Earnings before tax but after interest (EBT)	US$ in thousands	8,271	109,748	202,353	51,040	-58,131
Revenue	US$ in thousands	1,845,940	1,821,800	2,169,380	1,780,220	1,259,310
Pretax margin		0.45%	6.02%	9.33%	2.87%	-4.62%

December 31, 2024 calculation

Pretax margin = EBT ÷ Revenue
= $8,271K ÷ $1,845,940K
= 0.45%

The pretax margin of Titan International Inc, which represents the percentage of each dollar of revenue that translates into pre-tax profit, has shown some fluctuations over the years based on the provided data.

Initially, as of December 31, 2020, the company had a negative pretax margin of -4.62%, indicating that its expenses were exceeding its revenue at that time. However, over the following years, there was a notable improvement in the pretax margin performance. By December 31, 2021, the pretax margin had turned positive at 2.87%, suggesting that the company was able to better control its costs and increase profitability.

The trend continued to be positive as of December 31, 2022, with a significant increase in the pretax margin to 9.33%, indicating improved operational efficiency and potentially higher revenue generation. However, by December 31, 2023, there was a slight dip in the pretax margin to 6.02%, which could be a result of various factors such as economic conditions or changes in the industry landscape.

Lastly, as of December 31, 2024, the pretax margin decreased further to 0.45%, signaling a potential challenge in maintaining profitability levels. It is essential for Titan International Inc to closely monitor its cost structures, revenue streams, and operational efficiencies to sustain and improve its pretax margin in the future.