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
Company name
Symbol
Return on total capital
Timken Company
TKR
14.35%
RBC Bearings Incorporated
RBC
8.64%