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.
Peer comparison
Dec 31, 2023