Timken Company (TKR)
Current ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 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 | 1,874,600 | 1,807,400 | 1,866,700 | 1,919,600 |
| Total current liabilities | US$ in thousands | 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 | 736,600 | 704,600 | 696,300 | 683,600 |
| Current ratio | 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 | 2.54 | 2.57 | 2.68 | 2.81 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $2,634,900K ÷ $1,471,300K
= 1.79
The current ratio of Timken Co. has displayed some fluctuations over the recent quarters. In Q4 2023, the current ratio was 1.79, showing a slight improvement from the previous quarter's 1.73. Despite this improvement, the current ratio in Q4 2023 is lower compared to ratios observed in Q2 and Q1 2023, where it stood at 2.65 and 2.76, respectively.
Looking back further, the current ratio in Q4 2023 is also lower than that of the same quarter in 2022, where it was 2.47. However, it is worth noting that the current ratio has shown variability throughout 2022, reaching its highest point in Q1 at 2.94.
The current ratio reflects the company's ability to cover its short-term obligations with its current assets. A ratio above 1 indicates that the company has more current assets than current liabilities, which is generally seen as favorable. The fluctuations in Timken Co.'s current ratio suggest changes in the company's liquidity position over the analyzed period. Further investigation into the components of current assets and liabilities is needed to provide a more in-depth understanding of the company's short-term financial health.
Peer comparison
Dec 31, 2023