Timken Company (TKR)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 352,700 | 408,000 | 407,400 | 369,100 | 284,500 |
| Total assets | US$ in thousands | 6,411,000 | 6,541,700 | 5,772,400 | 5,170,700 | 5,041,600 |
| ROA | 5.50% | 6.24% | 7.06% | 7.14% | 5.64% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $352,700K ÷ $6,411,000K
= 5.50%
Based on the provided data, Timken Company's return on assets (ROA) has shown some fluctuations over the years. The ROA increased from 5.64% as of December 31, 2020, to 7.14% as of December 31, 2021, indicating an improvement in the company's ability to generate profit relative to its total assets.
However, there was a slight decrease in ROA to 7.06% by December 31, 2022, and a further decline to 6.24% by December 31, 2023. This suggests a potential decrease in efficiency in generating profit from its assets during those periods.
By the end of December 31, 2024, the ROA fell to 5.50%, indicating a continued decline in the company's ability to generate profit compared to its assets.
Overall, while the ROA initially improved, it seems to have somewhat declined in the later years, which could be a cause for concern as it indicates potential inefficiencies in asset utilization and profitability. Monitoring and analyzing the factors contributing to these changes would be crucial for assessing the company's financial performance and making informed decisions.
Peer comparison
Dec 31, 2024