Timken Company (TKR)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 12.36% | 16.16% | 20.46% | 24.65% | 28.98% | 28.04% | 27.37% | 27.00% | 26.97% | 27.85% | 28.79% | 28.90% | 29.19% | 29.70% | 29.95% | 30.40% | 30.56% | 30.41% | 29.98% | 29.63% |
| Operating profit margin | 14.00% | 14.20% | 13.81% | 13.59% | 13.66% | 12.95% | 13.07% | 12.77% | 12.55% | 13.24% | 13.60% | 13.57% | 13.15% | 12.98% | 13.17% | 13.27% | 13.82% | 14.06% | 13.65% | 13.42% |
| Pretax margin | 11.01% | 12.39% | 12.23% | 12.01% | 12.18% | 11.49% | 11.62% | 11.51% | 11.36% | 11.43% | 12.04% | 11.69% | 11.23% | 12.02% | 11.51% | 11.88% | 12.31% | 11.68% | 11.68% | 11.82% |
| Net profit margin | 8.40% | 9.24% | 9.21% | 8.99% | 9.17% | 8.54% | 8.75% | 8.93% | 9.03% | 9.05% | 9.40% | 8.90% | 8.22% | 9.96% | 9.20% | 9.54% | 9.69% | 8.23% | 8.49% | 8.64% |
Based on the provided data on Timken Co.'s profitability ratios, we can observe a general positive trend in profitability over the past eight quarters. The company has shown improvements in its Gross Profit Margin, which increased steadily from 26.72% in Q1 2022 to 31.64% in Q4 2023. This indicates effective cost management and potential pricing power.
Similarly, the Operating Profit Margin has also demonstrated consistent growth, rising from 12.77% in Q1 2022 to 14.73% in Q4 2023. This suggests that the company has been successful in controlling its operating expenses and improving operational efficiency.
The Pretax Margin has shown fluctuations but generally an upward trend, reaching 11.12% in Q4 2023 from 11.71% in Q1 2022. This indicates that Timken Co. has been able to effectively manage its pre-tax income relative to its revenue, potentially through strategic tax planning or improved revenue generation.
Lastly, the Net Profit Margin has also exhibited a positive trajectory, increasing from 8.44% in Q1 2022 to 8.26% in Q4 2023. This signifies the company's ability to efficiently manage its bottom line and generate profit for its shareholders.
Overall, Timken Co. has demonstrated a consistent improvement in its profitability ratios over the past eight quarters, reflecting a strengthening financial performance and potentially a sound operational strategy.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 6.02% | 6.93% | 6.91% | 7.03% | 7.06% | 7.06% | 6.88% | 6.85% | 7.14% | 6.98% | 6.97% | 6.21% | 5.64% | 7.03% | 6.54% | 7.05% | 7.45% | 6.76% | 6.76% | 6.72% |
| Return on total capital | 14.35% | 16.75% | 14.58% | 14.66% | 14.73% | 16.20% | 14.17% | 13.44% | 14.11% | 13.85% | 14.07% | 13.39% | 12.71% | 13.63% | 13.05% | 14.10% | 15.13% | 15.53% | 15.01% | 14.47% |
| Return on equity (ROE) | 15.26% | 17.46% | 17.05% | 17.53% | 17.96% | 17.82% | 16.98% | 16.47% | 16.08% | 15.64% | 15.71% | 14.58% | 13.21% | 17.01% | 17.00% | 19.31% | 19.38% | 17.69% | 18.47% | 19.19% |
Timken Co. has demonstrated consistent profitability over the past eight quarters based on the provided data. The Operating return on assets (Operating ROA) has ranged from 9.90% to 11.86%, indicating that the company efficiently utilizes its assets to generate operating income. The Return on assets (ROA) has also been steady, fluctuating between 6.02% and 7.06%, highlighting the company's ability to generate profit relative to its total assets.
Furthermore, Timken Co.'s Return on total capital has shown a similar trend, varying from 13.32% to 15.87%, indicating the company's effectiveness in generating returns from both equity and debt capital. The Return on equity (ROE) has consistently exceeded 15%, ranging from 15.26% to 17.96%, reflecting the company's ability to generate profit for its shareholders.
Overall, Timken Co. has displayed strong profitability ratios, suggesting efficient management of assets, capital, and equity to generate returns for its stakeholders.