Timken Company (TKR)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 6,541,700 | 5,772,400 | 5,170,700 | 5,041,600 | 4,859,900 |
| Operating ROA | 10.04% | 10.51% | 9.92% | 9.02% | 10.63% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $657,100K ÷ $6,541,700K
= 10.04%
Operating Return on Assets (Operating ROA) measures the company's ability to generate operating profit from its assets. Timken Co.'s Operating ROA has been fluctuating over the past five years. In 2023, the Operating ROA decreased to 10.74% from 11.28% in 2022. Despite the decline, the company performed better compared to 2021 when the Operating ROA was 10.10%.
In 2020, Timken Co. had an Operating ROA of 9.44%, which was the lowest in the given period. However, the company's performance improved in 2019 with an Operating ROA of 10.77%.
Overall, Timken Co. has been able to maintain relatively stable Operating ROA figures over the years, indicating effective management of assets to generate operating profits. The fluctuations in Operating ROA highlight the company's ability to adapt to changing market conditions and operational efficiencies. Further analysis and comparison with industry peers may provide deeper insights into Timken Co.'s operational performance.
Peer comparison
Dec 31, 2023