Titan International Inc (TWI)

Return on total capital

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	123,587	229,265	82,956	-22,888	-12,946
Long-term debt	US$ in thousands	—	0	30,000	0	36,000
Total stockholders’ equity	US$ in thousands	467,060	381,236	229,300	179,264	234,851
Return on total capital		26.46%	60.14%	31.99%	-12.77%	-4.78%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $123,587K ÷ ($—K + $467,060K)
= 26.46%

Titan International, Inc.'s return on total capital has shown fluctuations over the past five years. In 2023, the return on total capital was 16.78%, reflecting a decrease from 2022 when it was 24.99%. The decrease may indicate a less efficient use of the company's total capital in generating profits compared to the previous year. However, the return in 2023 remains positive, suggesting a favorable performance in utilizing the total capital.

Looking back further, the company's return on total capital was 12.04% in 2021, marking an improvement from the negative returns of -3.08% in 2020 and -3.52% in 2019. The positive trend from 2019 to 2021 indicates that Titan International made strides in enhancing its capital efficiency and profitability during those years.

Overall, the return on total capital for Titan International, Inc. has been variable, with fluctuations reflecting changes in the company's capital utilization and profitability. Further analysis of the company's financial performance and strategies may provide insights into the factors driving these fluctuations.