Titan International Inc (TWI)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 3.19 | 2.76 | 3.37 | 5.16 | 5.76 |
Titan International Inc's solvency ratios show a consistent and significant reduction over the years. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all been at 0.00 for the past five years, indicating that the company has no debt relative to its assets, capital, or equity. This signifies a strong financial position with minimal risk of insolvency due to debt obligations.
The Financial leverage ratio, on the other hand, has exhibited a declining trend from 5.76 in 2020 to 3.19 in 2024. This indicates that the company's reliance on debt to finance its operations has decreased significantly over the years, suggesting a more conservative capital structure and lower financial risk.
Overall, based on the solvency ratios, Titan International Inc appears to have a healthy financial position with minimal debt burden and a conservative approach to leverage, which bodes well for its long-term financial stability and ability to weather economic challenges.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 1.23 | 6.84 | 7.79 | 2.58 | -0.90 |
Based on the data provided for Titan International Inc, the interest coverage ratio has shown fluctuations over the past five years.
As of December 31, 2020, the interest coverage ratio was negative at -0.90, indicating that the company's operating income was insufficient to cover its interest expenses, which could be a cause for concern.
By December 31, 2021, the interest coverage ratio improved to 2.58, suggesting that the company's operating income was able to cover its interest expenses 2.58 times. This indicates a better financial position compared to the previous year.
The interest coverage ratio further increased to 7.79 by the end of December 31, 2022, reflecting a significant improvement in the company's ability to meet its interest obligations with operating income.
However, by December 31, 2024, the interest coverage ratio decreased to 1.23, potentially signaling a decline in the company's ability to cover its interest payments with operating income compared to the previous year.
Overall, while there have been fluctuations in Titan International Inc's interest coverage ratio over the years, the company has shown improvements in its ability to meet its interest obligations. It is important for the company to maintain a healthy interest coverage ratio to ensure financial stability and sustainability.