Timken Company (TKR)
Gross profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 507,000 | 1,288,100 | 1,102,500 | 1,009,900 | 1,141,800 |
| Revenue | US$ in thousands | 4,645,100 | 4,435,900 | 4,063,400 | 3,454,700 | 3,732,400 |
| Gross profit margin | 10.91% | 29.04% | 27.13% | 29.23% | 30.59% |
December 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $507,000K ÷ $4,645,100K
= 10.91%
The gross profit margin of Timken Co. has shown fluctuations over the past five years, ranging from 26.68% in 2021 to 31.64% in 2023. This metric indicates the percentage of revenue that exceeds the cost of goods sold, reflecting the company's pricing strategy and its ability to control production costs. The increasing trend in the gross profit margin from 2021 to 2023 suggests improved efficiency in managing production costs or possibly an emphasis on higher margin products or services. However, the decrease in 2022 raises concerns about potential cost pressures or pricing strategies that year. Overall, Timken Co. should continue monitoring its gross profit margin to ensure sustainable profitability and competitiveness in the market.
Peer comparison
Dec 31, 2023