Timken Company (TKR)
Return on assets (ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 352,700 | 340,200 | 346,300 | 375,300 | 394,100 | 432,600 | 431,700 | 411,500 | 407,400 | 373,100 | 374,200 | 374,000 | 369,100 | 359,300 | 360,000 | 317,100 | 284,500 | 344,900 | 320,300 | 350,900 |
| Total assets | US$ in thousands | 6,411,000 | 6,767,400 | 6,575,900 | 6,544,000 | 6,541,700 | 6,244,700 | 6,251,300 | 5,853,000 | 5,772,400 | 5,281,900 | 5,442,500 | 5,458,500 | 5,170,700 | 5,145,600 | 5,166,200 | 5,106,200 | 5,041,600 | 4,909,100 | 4,901,000 | 4,980,000 |
| 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% |
December 31, 2024 calculation
ROA = Net income (ttm) ÷ Total assets
= $352,700K ÷ $6,411,000K
= 5.50%
Timken Company's return on assets (ROA) has been fluctuating over the past few years, ranging from a low of 5.03% on December 31, 2024, to a high of 7.14% on December 31, 2021. Generally, ROA is a key indicator of how effectively a company is using its assets to generate profit.
The downward trend in ROA from 2023 to 2024 may indicate a decrease in the company's efficiency in generating profits relative to its total assets during this period. It is important for investors and stakeholders to closely monitor this trend to understand the underlying factors affecting the company's profitability and asset management strategies.
Overall, Timken Company's ROA performance suggests that the company has been able to generate a reasonable level of return on its assets, but there may be room for improvement in optimizing asset utilization to enhance profitability in the future.
Peer comparison
Dec 31, 2024