Titan International Inc (TWI)

Return on equity (ROE)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	78,760	176,302	49,586	-60,388	-48,425
Total stockholders’ equity	US$ in thousands	467,060	381,236	229,300	179,264	234,851
ROE		16.86%	46.24%	21.62%	-33.69%	-20.62%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $78,760K ÷ $467,060K
= 16.86%

Titan International Inc.'s return on equity (ROE) has displayed significant fluctuations over the past five years. In 2023, the ROE stood at 16.86%, reflecting a decline from the previous year's robust 46.24%. This reduction suggests a decrease in the company's ability to generate profit from shareholders' equity during the year.

The sharp increase in ROE from 2020 to 2022 (from -33.69% to 46.24%) indicates a notable improvement in the company's profitability and efficiency in utilizing shareholders' equity during these years. However, the substantial negative ROE figures in 2020 and 2019 (-33.69% and -21.44% respectively) are concerning as they indicate that the company was not generating sufficient profits to cover shareholder investments in those particular years.

Overall, the fluctuating ROE trend of Titan International Inc. highlights the company's varying performance in generating profits relative to shareholders' equity over the past five years. Further analysis of the company's financial statements and operations may be necessary to understand the factors driving these fluctuations and assess the company's long-term profitability prospects.