Titan International Inc (TWI)

Financial leverage ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Total assets	US$ in thousands	1,584,950	1,686,720	1,734,070	1,813,600	1,289,240	1,257,740	1,305,150	1,344,810	1,284,630	1,247,480	1,289,180	1,269,300	1,182,680	1,144,260	1,127,440	1,071,450	1,031,880	1,016,350	1,031,290	1,060,250
Total stockholders’ equity	US$ in thousands	496,073	597,767	609,341	630,143	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
Financial leverage ratio		3.19	2.82	2.85	2.88	2.76	2.90	2.90	3.20	3.37	3.95	4.31	5.11	5.16	6.43	6.21	6.38	5.76	5.98	5.88	5.92

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 declining trend over the reporting periods from March 31, 2020, to December 31, 2024. The ratio decreased from 5.92 on March 31, 2020, to 2.82 on September 30, 2024.

This downward trend in the financial leverage ratio indicates that the company has been reducing its reliance on debt financing in relation to equity over the period. A decreasing financial leverage ratio suggests that the company may be becoming less leveraged and potentially more financially stable.

The most significant drop in the financial leverage ratio occurred between March 31, 2022, and June 30, 2022, where the ratio fell from 5.11 to 4.31, representing a substantial decrease in leverage during that quarter.

Overall, the declining trend in the financial leverage ratio of Titan International Inc reflects a potentially positive shift towards a more conservative capital structure and reduced financial risk for the company.