Titan International Inc (TWI)

Debt-to-capital ratio

		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
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
Debt-to-capital ratio		0.00	0.00	0.00	0.00	0.00	0.00	0.07	0.20	0.12	0.14	0.14	0.05	0.00	0.00	0.14	0.14	0.13	0.19	0.13	0.08

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 decreasing trend over the past eight quarters, indicating a relatively lower level of debt financing compared to total capital employed in the business. The ratio decreased from 0.68 in Q1 2022 to 0.48 in Q4 2023. This suggests that the company has been managing its debt levels more effectively and may be relying less on debt to fund its operations and investments.

A lower debt-to-capital ratio is generally viewed positively by investors and creditors as it signifies lower financial risk and greater financial stability. It is important to note that the ideal debt-to-capital ratio varies by industry and company, so it is essential to compare Titan International's ratio with its industry peers for a more meaningful assessment of its financial leverage.

Overall, the improving trend in Titan International's debt-to-capital ratio reflects prudent financial management and potentially stronger financial performance, but further analysis and comparison with industry benchmarks are recommended for a more comprehensive evaluation.