Timken Company (TKR)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 2,516,900 | 2,634,900 | 2,504,000 | 2,213,500 | 2,000,300 |
| Total current liabilities | US$ in thousands | 820,500 | 1,471,300 | 1,012,400 | 896,600 | 848,000 |
| Current ratio | 3.07 | 1.79 | 2.47 | 2.47 | 2.36 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $2,516,900K ÷ $820,500K
= 3.07
The current ratio of Timken Company has exhibited a generally stable trend over the past five years. Specifically, the ratio was 2.36 as of December 31, 2020, increased slightly to 2.47 by the end of both 2021 and 2022, and then dropped to 1.79 by December 31, 2023. However, there was a notable improvement in the current ratio to 3.07 as of December 31, 2024.
A current ratio above 1 indicates that Timken Company has more current assets than current liabilities, suggesting its ability to cover short-term obligations. The company experienced a slight decline in liquidity in 2023, as the ratio fell below 2, but the subsequent increase in 2024 surpassed the previous levels. Overall, the current ratio implies that Timken Company has sufficient current assets to meet its short-term debts and operational requirements. However, it is important to monitor future changes in the ratio to ensure continued financial stability.
Peer comparison
Dec 31, 2024