Timken Company (TKR)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,790,300 | 1,914,200 | 1,411,100 | 1,433,900 | 1,648,100 |
| Total assets | US$ in thousands | 6,541,700 | 5,772,400 | 5,170,700 | 5,041,600 | 4,859,900 |
| Debt-to-assets ratio | 0.27 | 0.33 | 0.27 | 0.28 | 0.34 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,790,300K ÷ $6,541,700K
= 0.27
The debt-to-assets ratio of Timken Co. has shown some fluctuations over the past five years. In 2023, the ratio stands at 0.37, indicating that 37% of the company's assets are financed through debt. This represents an increase from the previous year when the ratio was 0.34.
Comparing the current ratio to 2021, we see a significant increase from 0.28 to 0.37. This suggests that Timken Co. has taken on more debt relative to its assets in 2023. However, it is worth noting that the ratio is still lower than the levels seen in 2019 and 2020 when it was 0.36 and 0.31, respectively.
Overall, while the recent increase in the debt-to-assets ratio may indicate a higher level of leverage, further analysis is needed to understand the reasons behind this change and whether it aligns with the company's overall financial strategy and objectives.
Peer comparison
Dec 31, 2023