Titan International Inc (TWI)
Debt-to-equity 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-equity ratio | 0.00 | 0.00 | 0.13 | 0.00 | 0.15 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $467,060K
= 0.00
The debt-to-equity ratio of Titan International, Inc. has shown a declining trend from 2.59 in 2020 to 0.91 in 2023. This indicates that the company has been reducing its reliance on debt financing relative to equity over the years. A lower debt-to-equity ratio suggests a stronger financial position and less financial risk for the company.
The significant decrease in the ratio from 2020 to 2021 implies that Titan International, Inc. may have actively worked towards reducing its debt levels or increasing its equity base during that period. This could have been due to various factors such as improved financial performance, strategic debt repayments, or equity injections.
Overall, the decreasing trend in the debt-to-equity ratio of Titan International, Inc. reflects a potentially healthier balance sheet and financial stability for the company in recent years. It indicates a more conservative approach to capital structure management, which can enhance the company's ability to weather economic uncertainties and pursue growth opportunities in the future.
Peer comparison
Dec 31, 2023