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 | ||
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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.
Peer comparison
Dec 31, 2023