Timken Company (TKR)
Pretax margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 494,200 | 530,500 | 550,900 | 476,600 | 396,300 |
| Revenue | US$ in thousands | 4,573,000 | 4,769,000 | 4,496,700 | 4,132,900 | 3,513,200 |
| Pretax margin | 10.81% | 11.12% | 12.25% | 11.53% | 11.28% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $494,200K ÷ $4,573,000K
= 10.81%
The pretax margin of Timken Company has shown fluctuations over the past five years. It increased from 11.28% in 2020 to 12.25% in 2022, indicating an improvement in the company's profitability before accounting for taxes. However, the pretax margin decreased in 2023 to 11.12% and further declined to 10.81% in 2024. This downward trend suggests a potential decrease in the company's ability to generate profits before tax expenses. Timken Company may need to analyze the factors contributing to this decline and consider implementing strategies to improve its pretax margin moving forward.
Peer comparison
Dec 31, 2024