Timken Company (TKR)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 611,100 | 657,100 | 658,600 | 535,400 | 463,900 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,826,500 | 2,582,400 | 2,268,300 | 2,294,900 | 2,152,900 |
| Return on total capital | 21.62% | 25.45% | 29.03% | 23.33% | 21.55% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $611,100K ÷ ($—K + $2,826,500K)
= 21.62%
The return on total capital for Timken Company has shown positive growth over the years, starting at 21.55% on December 31, 2020, and increasing steadily to 23.33% by December 31, 2021, further improving to 29.03% by December 31, 2022. However, there was a slight dip to 25.45% by December 31, 2023 and a marginal decrease to 21.62% by December 31, 2024. Overall, the trend indicates that Timken Company has been effectively utilizing its total capital to generate returns, with some fluctuations in recent years.
Peer comparison
Dec 31, 2024
Company name
Symbol
Return on total capital
Timken Company
TKR
21.62%
RBC Bearings Incorporated
RBC
8.64%