Timken Company (TKR)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 657,100 | 606,900 | 513,100 | 454,900 | 516,400 |
| Revenue | US$ in thousands | 4,645,100 | 4,435,900 | 4,063,400 | 3,454,700 | 3,732,400 |
| Operating profit margin | 14.15% | 13.68% | 12.63% | 13.17% | 13.84% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $657,100K ÷ $4,645,100K
= 14.15%
The operating profit margin of Timken Co. has shown a fluctuating trend over the past five years. In 2023, the operating profit margin increased to 14.73%, up from 14.48% in 2022. This improvement indicates that the company was able to effectively manage its operating expenses and generate higher operating profits relative to its revenue in 2023.
Comparing to previous years, the operating profit margin in 2021 was at 12.63%, showing a lower level of profitability compared to the more recent years. However, in 2020 and 2019, the operating profit margin was slightly higher at 13.55% and 13.81%, respectively.
Overall, the trend in Timken Co.'s operating profit margin suggests that the company has experienced some variations in its operational efficiency and profitability over the past five years. Monitoring this metric going forward will be important to assess the company's ability to maintain and improve its profitability levels.
Peer comparison
Dec 31, 2023