Timken Company (TKR)
Total asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,573,000 | 4,769,000 | 4,496,700 | 4,132,900 | 3,513,200 |
| Total assets | US$ in thousands | 6,411,000 | 6,541,700 | 5,772,400 | 5,170,700 | 5,041,600 |
| Total asset turnover | 0.71 | 0.73 | 0.78 | 0.80 | 0.70 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $4,573,000K ÷ $6,411,000K
= 0.71
The total asset turnover ratio of Timken Company has shown some fluctuation over the past five years. At the end of December 31, 2020, the total asset turnover ratio was 0.70, indicating that the company generated $0.70 in revenue for every dollar of assets it held. Over the next year, the ratio improved to 0.80 by December 31, 2021, suggesting a more efficient utilization of assets to generate revenue.
However, the ratio slightly decreased to 0.78 by December 31, 2022, and further to 0.73 by December 31, 2023, reflecting a potential decrease in overall asset productivity during those periods. By the end of December 31, 2024, the total asset turnover ratio stood at 0.71, indicating that the company experienced challenges in maximizing revenue from its assets.
Overall, Timken Company's total asset turnover has exhibited some variability, with fluctuations suggesting changes in operational efficiency and asset utilization over the five-year period. Further analysis of the company's operations and financial performance may be necessary to understand the underlying factors driving these fluctuations.
Peer comparison
Dec 31, 2024