Titan International Inc (TWI)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 3.19 | 2.82 | 2.85 | 2.88 | 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 |
Titan International Inc has consistently shown a strong solvency position over the years, as evidenced by its low debt-to-assets, debt-to-capital, and debt-to-equity ratios all being at 0.00 for the periods analyzed. This indicates that the company has minimal debt relative to its total assets, capital, and equity, respectively.
Additionally, the financial leverage ratio, which gives an indication of the company's financial risk and the extent to which it relies on debt, has been declining steadily from 5.92 in March 2020 to 3.19 in December 2024. This decreasing trend suggests that Titan International Inc has been reducing its reliance on debt to finance its operations, which is a positive sign for its overall financial health and stability.
Overall, based on the solvency ratios analyzed, Titan International Inc appears to have a solid financial foundation with minimal debt levels and improving financial leverage, indicating a strong ability to meet its financial obligations and withstand economic downturns.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 1.27 | 2.22 | 4.09 | 5.60 | 6.84 | 7.06 | 7.44 | 8.64 | 7.79 | 7.26 | 5.95 | 3.10 | 2.58 | 1.50 | 0.58 | 0.19 | -1.21 | -1.37 | -1.47 | -1.39 |
The interest coverage ratio for Titan International Inc shows a notable improvement over the period from March 31, 2020, to December 31, 2024.
At the beginning of the period, the interest coverage ratio was negative, indicating that the company's earnings before interest and taxes (EBIT) were insufficient to cover its interest expense. However, this trend started to reverse in the latter part of 2021, with the interest coverage ratio turning positive and gradually increasing.
From the end of 2021 to mid-2023, the interest coverage ratio showed a steady upward trajectory, reaching a peak of 8.64 on March 31, 2023. This indicates that Titan International Inc's EBIT was comfortably covering its interest expenses during this period.
However, from mid-2023 to the end of 2024, there was a slight decline in the interest coverage ratio, dropping to 1.27 by December 31, 2024. This suggests a potential decrease in the company's ability to cover its interest payments with its operating income.
Overall, the trend in Titan International Inc's interest coverage ratio demonstrates a significant improvement initially, followed by some fluctuations towards the end of the period under consideration. Analysts may want to delve deeper into the company's financial performance and its ability to generate sufficient earnings to cover its interest obligations.