Titan International Inc (TWI)

Return on assets (ROA)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	-5,560	78,760	176,302	49,586	-65,077
Total assets	US$ in thousands	1,584,950	1,289,240	1,284,630	1,182,680	1,031,880
ROA		-0.35%	6.11%	13.72%	4.19%	-6.31%

December 31, 2024 calculation

ROA = Net income ÷ Total assets
= $-5,560K ÷ $1,584,950K
= -0.35%

Based on the provided data for Titan International Inc's Return on Assets (ROA) over the five-year period from December 31, 2020, to December 31, 2024, the company's performance can be analyzed as follows:

1. December 31, 2020: The ROA was negative at -6.31%, indicating that the company's assets were not efficiently generating profits during this period.

2. December 31, 2021: The ROA improved to 4.19%, signaling a positive turnaround from the previous year. This suggests that Titan International Inc's assets were more effectively utilized to generate profits in this year.

3. December 31, 2022: The ROA further increased significantly to 13.72%, reflecting a substantial improvement in the company's asset utilization and profitability. This could indicate effective management of assets and potentially increased operational efficiency.

4. December 31, 2023: The ROA decreased to 6.11% from the previous year. Although lower than the peak in 2022, the ROA remained at a reasonable level, indicating that Titan International Inc continued to generate profits from its assets, albeit at a slightly lower rate.

5. December 31, 2024: The ROA turned negative again, at -0.35%, suggesting a decline in the company's profitability generated from its assets. This decrease could be due to various factors such as economic downturns, strategic decisions, or operational challenges faced by the company during this period.

In summary, Titan International Inc's ROA showed fluctuations over the years, with notable improvements in 2021 and 2022, followed by some decline in later years. It is essential for the company to sustain its asset efficiency and profitability levels to ensure long-term financial health and growth.