Timken Company (TKR)
Gross profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 1,440,700 | 4,769,000 | 1,288,100 | 1,102,500 | 1,009,900 |
| Revenue | US$ in thousands | 4,573,000 | 4,769,000 | 4,496,700 | 4,132,900 | 3,513,200 |
| Gross profit margin | 31.50% | 100.00% | 28.65% | 26.68% | 28.75% |
December 31, 2024 calculation
Gross profit margin = Gross profit ÷ Revenue
= $1,440,700K ÷ $4,573,000K
= 31.50%
The gross profit margin of Timken Company has exhibited some fluctuations over the past five years based on the provided data. As of December 31, 2020, the gross profit margin stood at 28.75%, indicating that for every dollar of revenue generated, the company retained $0.2875 as gross profit after deducting the cost of goods sold.
In the following year, by December 31, 2021, the gross profit margin decreased to 26.68%, suggesting a slight decline in the company's ability to control production costs relative to its revenue. This trend reversed in the subsequent year, as of December 31, 2022, with the gross profit margin improving to 28.65%, approaching the level seen in 2020.
Notably, there is a significant anomaly in the data for December 31, 2023, showing a gross profit margin of 100.00%. While such a high gross profit margin may seem unusual and potentially indicate data or calculation errors, further investigation would be required to understand the underlying reasons for this exceptional figure.
Lastly, as of December 31, 2024, the gross profit margin increased to 31.50%, indicating an improvement in the company's ability to generate profit from its core operations compared to the previous year.
Overall, the fluctuation in Timken Company's gross profit margin over the years suggests varying levels of efficiency in managing production costs and pricing strategies. It would be advisable for stakeholders and analysts to delve deeper into the company's financial performance and operational dynamics to gain a more comprehensive understanding of the factors influencing these changes.
Peer comparison
Dec 31, 2024