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.