Titan International Inc (TWI)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,584,950 | 1,289,240 | 1,284,630 | 1,182,680 | 1,031,880 |
| Total stockholders’ equity | US$ in thousands | 496,073 | 467,060 | 381,236 | 229,300 | 179,264 |
| Financial leverage ratio | 3.19 | 2.76 | 3.37 | 5.16 | 5.76 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,584,950K ÷ $496,073K
= 3.19
The financial leverage ratio of Titan International Inc has shown a decreasing trend over the past five years, indicating an improvement in the company's capital structure. As of December 31, 2020, the ratio was at 5.76, which decreased to 5.16 by December 31, 2021, and further dropped to 3.37 by December 31, 2022. The trend continued with a ratio of 2.76 by December 31, 2023, before seeing a slight increase to 3.19 by December 31, 2024.
This declining trend in the financial leverage ratio suggests that the company has been reducing its reliance on debt financing in relation to equity, which may signal a more stable financial position and lower financial risk. The decreasing leverage ratio indicates that Titan International Inc may have improved its ability to meet its financial obligations and have better control over its debt levels, potentially enhancing its overall financial health.
Peer comparison
Dec 31, 2024