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