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 | ||
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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