Timken Company (TKR)
Operating return on assets (Operating ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 657,100 | 664,900 | 647,000 | 622,200 | 606,900 | 566,000 | 558,600 | 534,700 | 513,100 | 525,800 | 520,500 | 483,900 | 454,900 | 449,600 | 458,500 | 488,200 | 516,400 | 527,300 | 508,100 | 488,300 |
| Total assets | US$ in thousands | 6,541,700 | 6,244,700 | 6,251,300 | 5,853,000 | 5,772,400 | 5,281,900 | 5,442,500 | 5,458,500 | 5,170,700 | 5,145,600 | 5,166,200 | 5,106,200 | 5,041,600 | 4,909,100 | 4,901,000 | 4,980,000 | 4,859,900 | 4,565,300 | 4,674,200 | 4,680,700 |
| Operating ROA | 10.04% | 10.65% | 10.35% | 10.63% | 10.51% | 10.72% | 10.26% | 9.80% | 9.92% | 10.22% | 10.08% | 9.48% | 9.02% | 9.16% | 9.36% | 9.80% | 10.63% | 11.55% | 10.87% | 10.43% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $657,100K ÷ $6,541,700K
= 10.04%
Operating return on assets (operating ROA) is a key financial metric that indicates how efficiently a company is generating operating profits relative to its total assets. The trend analysis of Timken Co.'s operating ROA shows a relatively stable performance over the past eight quarters. The operating ROA ranged from 9.90% in Q1 2022 to 11.86% in Q1 2023, with fluctuations seen between quarters but generally hovering around the 11% mark.
The consistently positive operating ROA figures reflect Timken Co.'s ability to generate operating income in relation to its asset base. This indicates that the company is effectively utilizing its assets to generate profits from its core operations. However, the slight variability in the operating ROA figures could suggest fluctuations in the company's operational efficiency or changes in asset utilization over time.
Overall, Timken Co.'s operating ROA trend demonstrates a solid performance in efficiently generating operating income from its assets, reflecting positively on the company's operational effectiveness. Further analysis along with other financial metrics would provide a more comprehensive assessment of the company's financial health and performance.
Peer comparison
Dec 31, 2023