Timken Company (TKR)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 627,300 | 615,900 | 523,000 | 456,000 | 531,900 |
| Long-term debt | US$ in thousands | 1,790,300 | 1,914,200 | 1,411,100 | 1,433,900 | 1,648,100 |
| Total stockholders’ equity | US$ in thousands | 2,582,400 | 2,268,300 | 2,294,900 | 2,152,900 | 1,868,200 |
| Return on total capital | 14.35% | 14.73% | 14.11% | 12.71% | 15.13% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $627,300K ÷ ($1,790,300K + $2,582,400K)
= 14.35%
Timken Co.'s return on total capital has shown a fluctuating trend over the past five years. The return on total capital was 14.11% at the end of 2023, slightly lower than the previous year's figure of 15.38%. In comparison to 2021 and 2020 where returns were 13.88% and 12.81% respectively, the company experienced an improvement in 2022. However, the return was still below the 2019 level of 14.54%. Overall, the company has demonstrated the ability to generate returns on its total capital, with some variability in performance over the years.
Peer comparison
Dec 31, 2023