Titan International Inc (TWI)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	496,073	467,060	381,236	229,300	179,264
ROE		-1.12%	16.86%	46.24%	21.62%	-36.30%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $-5,560K ÷ $496,073K
= -1.12%

Analyzing Titan International Inc's return on equity (ROE) over the past five years reveals fluctuations in the company's profitability and efficiency in generating returns for shareholders.

1. In December 31, 2020, the ROE was at a concerning -36.30%, indicating that the company was not effectively utilizing shareholder equity to generate profits. This suggests potential issues with the company's operations or financial management.

2. By December 31, 2021, Titan International Inc showed improvement with an ROE of 21.62%, signifying a return to profitability and more efficient use of shareholder equity. This could be a result of strategic changes or improved performance in the business.

3. The following year, by December 31, 2022, the ROE further increased to 46.24%, indicating a significant boost in profitability and efficiency in generating returns for shareholders. This could be a result of successful business strategies or increased revenues.

4. However, in December 31, 2023, the ROE slightly decreased to 16.86%, which, although lower than the previous year, still demonstrates a decent level of profitability and efficiency in utilizing shareholder equity.

5. Lastly, by December 31, 2024, the ROE turned negative at -1.12%, indicating a decline in profitability and efficiency in generating returns for shareholders. This could be a red flag for investors and may require further investigation into the company's financial health and performance.

Overall, Titan International Inc's ROE has shown fluctuations over the five-year period, with both positive and negative trends. Investors should carefully monitor future ROE figures to assess the company's financial performance and potential for generating returns.