Titan International Inc (TWI)
Return on total capital
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 123,553 | 158,879 | 192,758 | 241,239 | 229,238 | 223,327 | 185,884 | 99,821 | 82,983 | 50,687 | 21,248 | 18,293 | -22,909 | -31,610 | -35,434 | -41,624 | -12,288 | -2,086 | 19,562 | 38,682 |
| Long-term debt | US$ in thousands | — | — | — | — | 0 | — | 23,000 | 63,000 | 30,000 | 30,000 | 29,000 | 9,000 | 0 | 0 | 28,000 | 30,000 | 36,000 | 59,000 | 41,000 | 25,000 |
| Total stockholders’ equity | US$ in thousands | 467,060 | 433,218 | 450,098 | 420,808 | 381,236 | 315,763 | 299,345 | 248,374 | 229,300 | 177,916 | 181,550 | 167,995 | 179,264 | 169,838 | 175,373 | 179,139 | 234,851 | 244,231 | 282,934 | 284,393 |
| Return on total capital | 26.45% | 36.67% | 42.83% | 57.33% | 60.13% | 70.73% | 57.67% | 32.06% | 32.00% | 24.38% | 10.09% | 10.34% | -12.78% | -18.61% | -17.42% | -19.90% | -4.54% | -0.69% | 6.04% | 12.50% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $123,553K ÷ ($—K + $467,060K)
= 26.45%
Titan International, Inc.'s return on total capital has shown a fluctuating trend over the past eight quarters. The return on total capital was strong in Q1 2023 at 25.29%, indicating that the company efficiently utilized its resources to generate profits. This was followed by slightly lower returns in Q2 and Q3 2023 at 21.94% and 19.72%, respectively.
The return on total capital then decreased further to 16.78% in Q4 2023, which could be a point of concern as it indicates a decline in the company's ability to generate profits from its total capital. Comparing these figures to the previous year, the return on total capital was relatively stable in Q2, Q3, and Q4 of 2022, ranging from 20.72% to 24.99%, before increasing to 15.13% in Q1 2022.
Overall, Titan International, Inc.'s return on total capital has displayed variability, with fluctuations in performance levels over the past quarters. It would be important for stakeholders to closely monitor the company's capital efficiency and profitability to assess its financial health and sustainability.
Peer comparison
Dec 31, 2023