Timken Company (TKR)
Working capital 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 current assets | US$ in thousands | 2,634,900 | 2,504,000 | 2,213,500 | 2,000,300 | 1,874,600 |
| Total current liabilities | US$ in thousands | 1,471,300 | 1,012,400 | 896,600 | 848,000 | 736,600 |
| Working capital turnover | 3.99 | 2.97 | 3.09 | 3.00 | 3.28 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $4,645,100K ÷ ($2,634,900K – $1,471,300K)
= 3.99
The working capital turnover ratio for Timken Co. has been fluctuating over the past five years. In 2023, the company achieved a working capital turnover ratio of 4.10, which indicates that the company generated $4.10 in revenue for every dollar of working capital invested. This represents an improvement from the previous year, where the ratio was 3.01.
Overall, the trend in working capital turnover suggests that Timken Co. has been effectively managing its working capital to generate sales revenue. A higher ratio signifies that the company is efficiently using its working capital to support sales activity. It is important for the company to maintain a balance in managing its working capital to ensure smooth operations and sustainable growth.
Peer comparison
Dec 31, 2023