Timken Company (TKR)
Total 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 |
| Total assets | US$ in thousands | 6,541,700 | 6,244,700 | 6,251,300 | 5,853,000 | 5,772,400 | 5,281,900 | 5,442,500 | 5,458,500 | 5,170,700 | 5,145,600 | 5,166,200 | 5,106,200 | 5,041,600 | 4,909,100 | 4,901,000 | 4,980,000 | 4,859,900 | 4,565,300 | 4,674,200 | 4,680,700 |
| Total asset turnover | 0.72 | 0.75 | 0.75 | 0.78 | 0.77 | 0.83 | 0.79 | 0.77 | 0.79 | 0.77 | 0.74 | 0.70 | 0.69 | 0.71 | 0.71 | 0.74 | 0.77 | 0.82 | 0.80 | 0.78 |
December 31, 2023 calculation
Total asset turnover = Revenue (ttm) ÷ Total assets
= $4,692,900K ÷ $6,541,700K
= 0.72
The total asset turnover for Timken Co. has shown a declining trend over the past eight quarters, with values ranging from 0.73 to 0.84. This ratio indicates how efficiently the company generates sales revenue from its total assets. A decreasing trend in total asset turnover may suggest that Timken Co. is becoming less efficient in utilizing its assets to generate sales.
A total asset turnover below 1 implies that the company is generating less in sales revenue compared to its total assets. This could be due to various reasons such as underutilization of assets, inefficient operations, or declining sales performance.
Further analysis and comparison with industry benchmarks or competitor ratios would provide additional insights into Timken Co.'s operational efficiency and asset utilization. It is crucial for the company to address the factors contributing to the declining total asset turnover to ensure optimal utilization of its assets and improve overall financial performance.
Peer comparison
Dec 31, 2023