Timken Company (TKR)
Profitability ratios
Return on sales
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 31.12% | 30.76% | 30.89% | 31.35% | 31.28% | 30.97% | 30.54% | 29.95% | 28.88% | 27.95% | 27.07% | 26.72% | 26.68% | 27.54% | 28.45% | 28.50% | 28.75% | 29.25% | 29.48% | 29.95% |
| Operating profit margin | 13.47% | 13.55% | 13.57% | 13.93% | 13.78% | 13.97% | 13.61% | 13.42% | 13.50% | 12.80% | 12.92% | 12.63% | 12.42% | 13.09% | 13.43% | 13.39% | 12.95% | 12.78% | 12.96% | 13.08% |
| Pretax margin | 10.81% | 10.13% | 10.35% | 10.98% | 11.12% | 12.46% | 12.33% | 12.06% | 12.25% | 11.61% | 11.76% | 11.71% | 11.53% | 11.57% | 12.15% | 11.73% | 11.28% | 12.12% | 11.61% | 12.04% |
| Net profit margin | 7.71% | 7.41% | 7.52% | 7.99% | 8.26% | 9.09% | 9.08% | 8.88% | 9.06% | 8.44% | 8.66% | 8.84% | 8.93% | 8.94% | 9.29% | 8.77% | 8.10% | 9.80% | 9.06% | 9.40% |
Timken Company's profitability ratios show a gradual decline in gross profit margin from March 31, 2022, to June 30, 2022, but a subsequent improvement in the following quarters, reaching 31.12% by December 31, 2024. This indicates the company's ability to maintain a healthy level of profitability from sales after deducting the cost of goods sold.
Operating profit margin, on the other hand, experienced fluctuations over the period, with a peak at 13.93% on March 31, 2024. This ratio reflects the company's efficiency in managing its operating expenses to generate profits from its core business activities.
The pretax margin also depicted variability, with a noticeable drop from December 31, 2023, to December 31, 2024. This ratio measures the company's earnings before taxes relative to its total revenue, showcasing its ability to generate profits before tax expenses.
Lastly, the net profit margin saw a downward trend from March 31, 2023, to December 31, 2024. This metric reflects Timken Company's overall profitability after accounting for all expenses, including interest and taxes, indicating its ability to generate net income from its operations.
Overall, the analysis of Timken Company's profitability ratios shows fluctuations in margins over the period, reflecting the company's performance in generating profits from its operations while managing costs and expenses.
Return on investment
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 9.61% | 9.19% | 9.51% | 10.00% | 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% |
| Return on assets (ROA) | 5.50% | 5.03% | 5.27% | 5.74% | 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% |
| Return on total capital | 20.84% | 20.30% | 21.83% | 24.66% | 25.06% | 28.32% | 28.01% | 29.05% | 29.32% | 29.56% | 26.35% | 24.42% | 23.50% | 23.03% | 23.41% | 22.67% | 21.56% | 24.59% | 25.47% | 28.51% |
| Return on equity (ROE) | 11.82% | 11.60% | 12.38% | 14.39% | 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% |
Profitability Ratios Analysis for Timken Company:
1. Operating Return on Assets (Operating ROA):
- Timken's Operating ROA has been relatively stable, ranging between 9.02% to 10.72% during the analyzed periods.
- The company's ability to generate operating income from its assets seems to be improving slightly over time.
2. Return on Assets (ROA):
- ROA shows a fluctuating trend for Timken, varying from 5.03% to 7.14% over the periods.
- The company's overall profitability in relation to its total assets shows some volatility.
3. Return on Total Capital:
- Return on Total Capital reflects Timken's ability to generate returns on its total invested capital.
- There is a fluctuating trend between 20.30% to 29.56% during the reviewed periods, indicating some variability in capital efficiency.
4. Return on Equity (ROE):
- ROE exhibits a trend similar to ROA, with fluctuations from 11.60% to 19.31% over the analyzed periods.
- Timken's performance in generating returns for its shareholders' equity has been somewhat inconsistent.
Overall, Timken Company's profitability ratios suggest a mix of stability and variability in generating returns from its assets, capital, and equity. The company should continue to monitor and optimize its profitability metrics to ensure sustained financial performance and shareholder value.