Timken Company (TKR)
Current ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 2,516,900 | 2,731,900 | 2,773,100 | 2,700,600 | 2,634,900 | 2,606,900 | 2,710,800 | 2,592,300 | 2,504,000 | 2,453,500 | 2,480,400 | 2,548,300 | 2,213,500 | 2,195,400 | 2,195,000 | 2,143,600 | 2,000,300 | 1,964,500 | 2,006,900 | 2,092,200 |
| Total current liabilities | US$ in thousands | 820,500 | 910,300 | 940,700 | 1,442,700 | 1,471,300 | 1,503,900 | 1,022,400 | 940,000 | 1,012,400 | 1,209,000 | 920,500 | 866,200 | 896,600 | 846,000 | 857,300 | 916,800 | 848,000 | 740,400 | 664,800 | 769,800 |
| Current ratio | 3.07 | 3.00 | 2.95 | 1.87 | 1.79 | 1.73 | 2.65 | 2.76 | 2.47 | 2.03 | 2.69 | 2.94 | 2.47 | 2.60 | 2.56 | 2.34 | 2.36 | 2.65 | 3.02 | 2.72 |
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 fluctuated over the period from March 31, 2020, to December 31, 2024. The current ratio provides insight into the company's ability to cover its short-term obligations with its current assets.
The current ratio ranged from a low of 1.73 on September 30, 2023, to a high of 3.07 on December 31, 2024. Generally, a current ratio above 1 indicates that a company has more current assets than current liabilities, which is a positive sign of short-term liquidity.
Timken's current ratio showed some volatility, indicating potential fluctuations in the company's ability to meet its short-term obligations. It is important to note that a higher current ratio does not necessarily always indicate better financial health, as an extremely high ratio may suggest that the company is not effectively utilizing its current assets.
Analyzing the trend of the current ratio over time can provide valuable insights into the company's liquidity position and its ability to manage short-term financial obligations effectively. Investors and stakeholders should further investigate the reasons behind the fluctuations in the current ratio to assess the overall financial health and operating efficiency of Timken Company.
Peer comparison
Dec 31, 2024