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.