Titan International Inc (TWI)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.02 | 0.05 | 0.03 | 0.03 | 0.03 | 0.01 | 0.00 | 0.00 | 0.03 | 0.03 | 0.03 | 0.05 | 0.03 | 0.02 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.07 | 0.20 | 0.12 | 0.14 | 0.14 | 0.05 | 0.00 | 0.00 | 0.14 | 0.14 | 0.13 | 0.19 | 0.13 | 0.08 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.08 | 0.25 | 0.13 | 0.17 | 0.16 | 0.05 | 0.00 | 0.00 | 0.16 | 0.17 | 0.15 | 0.24 | 0.14 | 0.09 |
| 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 |
The solvency ratios of Titan International, Inc. provide insights into the company's ability to meet its long-term financial obligations. Over the last eight quarters, the debt-to-assets ratio has remained relatively stable around 0.33 to 0.35, indicating that about one-third of the company's assets are financed by debt.
Similarly, the debt-to-capital ratio has also shown consistency, hovering between 0.48 and 0.54, suggesting that approximately half of the company's capital structure is comprised of debt. The debt-to-equity ratio has exhibited a gradual decreasing trend from 2.10 in Q1 2022 to 0.91 in Q4 2023, reflecting a reduction in the proportion of debt relative to equity in financing the company's operations.
Moreover, the financial leverage ratio, which indicates the extent of financial leverage used by the company, has declined from 5.11 in Q1 2022 to 2.76 in Q4 2023. This downward trend suggests that Titan International has been reducing its reliance on debt financing to support its business activities over time.
Overall, the consistent debt-to-assets and debt-to-capital ratios, coupled with the decreasing trends in the debt-to-equity and financial leverage ratios, indicate that Titan International has been effectively managing its solvency position by optimizing its capital structure and reducing its financial leverage.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
Based on the data provided for Titan International, Inc.'s interest coverage ratio over the past eight quarters, the company has demonstrated a consistent ability to cover its interest expenses. The interest coverage ratio has been steadily increasing from 3.58 in Q1 2022 to 7.98 in Q4 2023, indicating a positive trend in the company's ability to meet its interest obligations.
With ratios consistently above 1, ranging from a low of 3.58 to a high of 7.98, Titan International has maintained a comfortable buffer between its earnings before interest and taxes (EBIT) and its interest expenses. This suggests that the company's earnings are sufficient to cover its interest payments, providing investors and creditors with a favorable level of assurance regarding the company's financial health.
The upward trend in the interest coverage ratio reflects positively on the company's financial performance and indicates that Titan International has been effectively managing its debt obligations. This improved coverage ratio over the quarters is a good sign of financial stability and sustainability in meeting its interest payment obligations. However, it is important for stakeholders to continue monitoring this ratio to ensure that the trend persists and remains at a healthy level.