Titan International Inc (TWI)

Titan International, Inc.'s solvency ratios paint a picture of the company's financial stability and ability to meet its long-term financial obligations. The debt-to-assets ratio has shown a decreasing trend over the past five years, indicating that the company has been relying less on debt to finance its assets, which is a positive sign of improved solvency.

The debt-to-capital ratio, which indicates the proportion of debt in the company's capital structure, has also decreased steadily over the years. This suggests that Titan International has been able to lower its reliance on debt financing when compared to its total capital, enhancing its financial health.

The debt-to-equity ratio, a key solvency metric, has shown a decreasing trend as well. This indicates that the company has been gradually reducing its reliance on debt in favor of equity financing, which is generally considered a more stable form of financing.

The financial leverage ratio, which measures the company's total assets against its equity, has declined over the years. This signifies that Titan International's equity has been growing faster than its total assets, which can be seen as a positive development in terms of financial stability and reduced financial risk.

In conclusion, the decreasing trend in Titan International's solvency ratios over the years reflects a more robust financial position with lower reliance on debt and improved stability in meeting long-term obligations.

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Coverage ratios

Titan International, Inc.'s interest coverage ratio has shown improvement over the past five years. The interest coverage ratio, which indicates the company's ability to cover its interest expenses with operating income, was 7.98 in 2023, reflecting a healthy level of interest coverage. This suggests that Titan International is generating sufficient operating income to comfortably cover its interest obligations.

In 2022, the interest coverage ratio was 6.94, indicating a slight decrease from the previous year but still at a reasonable level. The ratio has shown a significant improvement from 2.67 in 2021, where the company's ability to cover interest expenses was moderate. The negative ratios in 2020 and 2019 (-0.65 and -0.81, respectively) indicate that Titan International did not generate enough operating income to cover its interest expenses during those years.

Overall, the improving trend in the interest coverage ratio of Titan International, Inc. suggests that the company's financial health has strengthened in recent years, indicating a more stable position regarding its ability to meet interest obligations.