Titan International Inc (TWI)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 39,281 | 53,981 | 78,572 | 99,597 | 128,533 | 163,510 | 196,578 | 245,121 | 232,149 | 225,969 | 188,553 | 101,087 | 83,261 | 46,978 | 17,972 | 5,774 | -37,260 | -43,639 | -48,558 | -46,359 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 496,073 | 597,767 | 609,341 | 630,143 | 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 |
| Return on total capital | 7.92% | 9.03% | 12.89% | 15.81% | 27.52% | 37.74% | 43.67% | 58.25% | 60.89% | 71.56% | 62.99% | 40.70% | 36.31% | 26.40% | 9.90% | 3.44% | -20.78% | -25.69% | -27.69% | -25.88% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $39,281K ÷ ($—K + $496,073K)
= 7.92%
Return on total capital measures the efficiency of Titan International Inc in generating profits from the total capital employed in the business. Looking at the trend over the reported periods, the company experienced negative returns on total capital from March 2020 to June 2021, indicating that the company was not effectively utilizing its capital to generate profits during this period.
However, starting from September 2021, there was a significant improvement in the return on total capital, reaching a peak of 71.56% by September 2022. This positive trend indicates that Titan International Inc has been more efficient in utilizing its total capital to generate returns for its shareholders.
Nevertheless, the return on total capital started to decline from the peak in September 2022, dropping to 7.92% by December 2024. This decrease could signal potential issues in the company's profitability and efficiency in utilizing its capital effectively.
Overall, the fluctuating trend in return on total capital suggests that Titan International Inc has had periods of both strong and weak capital utilization efficiency. Further analysis of the company's financial performance and operational strategies would be essential to understand the factors driving these fluctuations and to make informed investment decisions.
Peer comparison
Dec 31, 2024