Timken Company (TKR)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 621,900 | 595,400 | 610,500 | 643,200 | 647,100 | 701,600 | 709,000 | 682,100 | 665,000 | 618,800 | 580,600 | 554,500 | 539,200 | 528,900 | 536,300 | 493,100 | 464,100 | 498,800 | 479,700 | 518,200 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Return on total capital | 20.84% | 20.30% | 21.83% | 24.66% | 25.06% | 28.32% | 28.01% | 29.05% | 29.32% | 29.56% | 26.35% | 24.42% | 23.50% | 23.03% | 23.41% | 22.67% | 21.56% | 24.59% | 25.47% | 28.51% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $621,900K ÷ ($—K + $2,984,100K)
= 20.84%
Timken Company's return on total capital has shown fluctuations over the given periods. The ratio was at its peak at 29.56% as of September 30, 2022, indicating the company was efficiently generating returns on its total invested capital. However, there was a slight dip to 20.30% by September 30, 2024. This decrease suggests a potential decline in the company's ability to generate profits relative to the capital employed. Overall, Timken Company's return on total capital has displayed variability, and it is essential for stakeholders to closely monitor this ratio to assess the company's financial performance and capital efficiency.
Peer comparison
Dec 31, 2024