Timken Company (TKR)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,645,100 | 4,435,900 | 4,063,400 | 3,454,700 | 3,732,400 |
| Total assets | US$ in thousands | 6,541,700 | 5,772,400 | 5,170,700 | 5,041,600 | 4,859,900 |
| Total asset turnover | 0.71 | 0.77 | 0.79 | 0.69 | 0.77 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $4,645,100K ÷ $6,541,700K
= 0.71
The total asset turnover ratio of Timken Co. has been fluctuating over the past five years. In 2023, the total asset turnover ratio decreased to 0.73 from 0.78 in 2022, indicating that the company generated $0.73 in revenue for every dollar of assets it held. This decline may suggest a decrease in the efficiency of utilizing its assets to generate sales.
Comparing to the trend from 2021 to 2022 where the ratio improved from 0.80 to 0.78, it appears that Timken Co. may have experienced some challenges in effectively utilizing its assets in 2023.
It is important for the company to closely monitor and analyze the factors influencing this ratio to ensure that it can optimize the use of its assets and improve operational efficiency in the future.
Peer comparison
Dec 31, 2023