Timken Company (TKR)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 394,100 | 407,400 | 369,100 | 284,500 | 362,100 |
| Total assets | US$ in thousands | 6,541,700 | 5,772,400 | 5,170,700 | 5,041,600 | 4,859,900 |
| ROA | 6.02% | 7.06% | 7.14% | 5.64% | 7.45% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $394,100K ÷ $6,541,700K
= 6.02%
Timken Co.'s Return on Assets (ROA) measures the company's efficiency in utilizing its total assets to generate profits. The trend of Timken Co.'s ROA over the past five years shows some fluctuation.
In 2019, Timken Co. had an ROA of 7.45%, which decreased to 5.64% in 2020 before slightly increasing to 7.14% in 2021. The trend continued with a further increase to 7.06% in 2022, followed by a slight decrease to 6.02% in 2023.
Overall, Timken Co.'s ROA has shown some volatility, with fluctuations in profitability relative to its total assets. It is important for the company to closely monitor and manage its asset utilization to ensure sustained profitability in the future.
Peer comparison
Dec 31, 2023