Timken Company (TKR)
Debt-to-equity ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,826,500 | 2,582,400 | 2,268,300 | 2,294,900 | 2,152,900 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $2,826,500K
= 0.00
Based on the provided data, Timken Company's debt-to-equity ratio has been consistently at 0.00 from December 31, 2020, to December 31, 2024. A debt-to-equity ratio of 0.00 indicates that the company has no debt in its capital structure and is entirely financed by equity. This suggests that Timken Company relies solely on investor contributions and profits to fund its operations and growth rather than taking on debt.
Having a debt-to-equity ratio of 0.00 may indicate financial stability and a lower financial risk as the company does not have debt obligations to service. It also suggests that the company may have a strong equity base to support its operations and investments. However, it's essential to consider that a lack of debt in the capital structure could potentially limit the company's financial flexibility or tax advantages associated with debt financing.
Overall, a consistent debt-to-equity ratio of 0.00 for Timken Company over the specified period reflects a capital structure heavily weighted towards equity, highlighting a conservative approach to financing operations and investments.
Peer comparison
Dec 31, 2024