Titan International Inc (TWI)

Interest coverage

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
Earnings before interest and tax (EBIT) (ttm) US$ in thousands 123,553 158,879 192,758 241,239 229,238 223,327 185,884 99,821 82,983 50,687 21,248 18,293 -22,909 -31,610 -35,434 -41,624 -12,288 -2,086 19,562 38,682
Interest expense (ttm) US$ in thousands 18,785 23,146 26,436 28,381 29,796 31,117 31,714 32,605 32,221 31,417 30,850 30,158 30,555 31,330 32,243 32,632 32,645 29,955 29,387 28,764
Interest coverage 6.58 6.86 7.29 8.50 7.69 7.18 5.86 3.06 2.58 1.61 0.69 0.61 -0.75 -1.01 -1.10 -1.28 -0.38 -0.07 0.67 1.34

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $123,553K ÷ $18,785K
= 6.58

Titan International, Inc.'s interest coverage ratio has shown a generally positive trend over the past eight quarters, indicating the company's ability to meet its interest obligations comfortably. The interest coverage ratio has increased from 6.94 in Q4 2022 to 7.98 in Q4 2023, reaching its highest point during this period. This suggests that Titan International's operating income is more than sufficient to cover its interest expenses, reflecting a strong financial position. The consistent uptrend in the interest coverage ratio over the quarters demonstrates improved profitability and financial stability for the company. Additionally, the ratio has consistently been well above 1, indicating that Titan International has surplus operating income to meet its interest payments, which is a positive sign for creditors and investors. Overall, the trend in Titan International's interest coverage ratio reflects a healthy financial performance and a reduced risk of default on its debt obligations.


Peer comparison

Dec 31, 2023