Titan International Inc (TWI)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | 0 | 30,000 | 0 | 36,000 |
| Total stockholders’ equity | US$ in thousands | 467,060 | 381,236 | 229,300 | 179,264 | 234,851 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.12 | 0.00 | 0.13 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $467,060K)
= 0.00
The debt-to-capital ratio of Titan International, Inc. has shown a declining trend over the past five years, decreasing from 0.68 in 2019 to 0.48 in 2023. This indicates that the company has been reducing its reliance on debt financing relative to its total capital structure. A lower debt-to-capital ratio suggests a healthier financial position as it signifies a lower level of financial risk and leverage. It is important for investors and creditors to monitor this ratio as it reflects the company's ability to meet its debt obligations and manage its capital structure effectively. The decreasing trend in Titan International's debt-to-capital ratio may imply improved financial stability and risk management practices within the company.
Peer comparison
Dec 31, 2023