Timken Company (TKR)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 2,984,100 | 2,933,300 | 2,796,800 | 2,608,300 | 2,582,400 | 2,477,800 | 2,531,300 | 2,348,000 | 2,268,300 | 2,093,600 | 2,203,600 | 2,271,100 | 2,294,900 | 2,296,900 | 2,290,900 | 2,175,500 | 2,152,900 | 2,028,100 | 1,883,600 | 1,817,400 |
| 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% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $352,700K ÷ $2,984,100K
= 11.82%
The return on equity (ROE) for Timken Company has shown fluctuations over the observed periods. ROE for the company was relatively high at around 19.31% as of March 31, 2020, indicating efficient utilization of shareholder equity to generate profits. However, there was a slight decline in ROE to 17.00% by June 30, 2020, and further to 13.21% by December 31, 2020, which may suggest a decrease in profitability relative to the equity invested.
Subsequently, there was a gradual improvement in ROE, reaching 17.82% by September 30, 2022, reflecting a positive trend in the company's ability to generate profits from shareholders' equity. However, ROE exhibited a slight decrease to 15.26% by December 31, 2023, and a more significant decline to 11.82% by December 31, 2024. These decreases may indicate challenges in maintaining profitability levels relative to the equity base during these periods.
Overall, while the ROE for Timken Company has fluctuated over the observed periods, it is essential to monitor future trends closely to assess the company's ability to generate returns for its shareholders efficiently.
Peer comparison
Dec 31, 2024