Timken Company (TKR)
Fixed asset turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 4,692,900 | 4,683,700 | 4,685,600 | 4,577,000 | 4,444,200 | 4,369,500 | 4,274,900 | 4,187,100 | 4,087,600 | 3,972,000 | 3,827,800 | 3,564,800 | 3,459,700 | 3,464,200 | 3,481,700 | 3,677,800 | 3,736,200 | 3,750,100 | 3,723,100 | 3,638,000 |
| Property, plant and equipment | US$ in thousands | 1,303,000 | 1,245,900 | 1,255,500 | 1,228,500 | 1,207,400 | 1,069,000 | 1,096,100 | 1,039,900 | 1,055,300 | 1,035,300 | 1,025,100 | 1,020,600 | 1,035,600 | 980,200 | 962,100 | 961,600 | 989,200 | 906,800 | 912,000 | 896,200 |
| Fixed asset turnover | 3.60 | 3.76 | 3.73 | 3.73 | 3.68 | 4.09 | 3.90 | 4.03 | 3.87 | 3.84 | 3.73 | 3.49 | 3.34 | 3.53 | 3.62 | 3.82 | 3.78 | 4.14 | 4.08 | 4.06 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $4,692,900K ÷ $1,303,000K
= 3.60
The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate revenue. A higher ratio indicates better utilization of assets.
In the case of Timken Co., the fixed asset turnover ratio has been fluctuating over the past eight quarters. It peaked at 4.14 in Q3 2022, indicating that the company was effectively generating revenue from its fixed assets. However, it decreased to 3.64 in Q4 2023, which might suggest a decline in asset efficiency during that quarter.
Overall, the trend seems to show some variability in how effectively Timken Co. is utilizing its fixed assets. Further analysis and comparison with industry benchmarks could provide more insights into the company's asset management efficiency.
Peer comparison
Dec 31, 2023