Titan International Inc (TWI)

Financial leverage 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
Total assets	US$ in thousands	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	1,114,310	1,189,600	1,269,530	1,325,260
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
Financial leverage ratio		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	4.74	4.87	4.49	4.66

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,289,240K ÷ $467,060K
= 2.76

Titan International, Inc.'s financial leverage ratio has been fluctuating over the past eight quarters. The ratio decreased from 5.11 in Q1 2022 to 2.76 in Q4 2023, indicating a significant reduction in leverage during this period. However, it is important to note that the ratio increased again in Q2 2023 and maintained a relatively stable level around 2.90 for the next three quarters.

A financial leverage ratio above 1 suggests that the company relies more on debt financing than equity, with a higher ratio indicating higher financial risk. Titan International's leverage ratio has been on a downward trend since Q1 2022, which may indicate a decrease in the company's financial risk and improved financial stability.

Overall, the fluctuations in Titan International's financial leverage ratio over the past eight quarters suggest that the company has been actively managing its debt levels. It is important for stakeholders to monitor this ratio closely to assess the company's capital structure and financial health.