Timken Company (TKR)
Debt-to-capital ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,790,300 | 1,601,600 | 2,046,500 | 1,978,800 | 1,914,200 | 1,411,300 | 1,734,300 | 1,747,200 | 1,411,100 | 1,417,000 | 1,424,300 | 1,423,700 | 1,433,900 | 1,533,000 | 1,730,100 | 1,785,800 | 1,648,100 | 1,553,500 | 1,642,600 | 1,746,500 |
| Total stockholders’ equity | US$ in thousands | 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 | 1,868,200 | 1,744,800 | 1,711,300 | 1,638,500 |
| Debt-to-capital ratio | 0.41 | 0.39 | 0.45 | 0.46 | 0.46 | 0.40 | 0.44 | 0.43 | 0.38 | 0.38 | 0.38 | 0.40 | 0.40 | 0.43 | 0.48 | 0.50 | 0.47 | 0.47 | 0.49 | 0.52 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,790,300K ÷ ($1,790,300K + $2,582,400K)
= 0.41
The debt-to-capital ratio measures the proportion of a company's total capital structure that is financed by debt. A higher ratio indicates a larger reliance on debt financing, which can increase financial risk.
Timken Co.'s debt-to-capital ratio has fluctuated slightly over the past eight quarters. In the most recent quarter, Q4 2023, the ratio was 0.48, indicating that debt accounted for 48% of the company's total capital. This represents a slight increase from the previous quarter's ratio of 0.47.
Looking back over the past year, the trend shows a relatively stable debt-to-capital ratio ranging from 0.44 to 0.48. This suggests that Timken Co. has maintained a moderate level of debt in its capital structure.
Overall, a debt-to-capital ratio of around 0.45 to 0.48 indicates that Timken Co. has a balanced mix of debt and equity financing. However, it is essential for investors and creditors to monitor these ratios to assess the company's financial health and risk management practices over time.
Peer comparison
Dec 31, 2023