Timken Company (TKR)
Debt-to-equity 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-equity ratio | 0.69 | 0.65 | 0.81 | 0.84 | 0.84 | 0.67 | 0.79 | 0.77 | 0.61 | 0.62 | 0.62 | 0.65 | 0.67 | 0.76 | 0.92 | 0.98 | 0.88 | 0.89 | 0.96 | 1.07 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,790,300K ÷ $2,582,400K
= 0.69
The debt-to-equity ratio of Timken Co. has shown a relatively stable trend over the past eight quarters. The ratio has ranged between 0.79 and 0.93 during this period, indicating that the company relies more on debt financing compared to equity.
In Q4 2023, the debt-to-equity ratio increased to 0.93 compared to the previous quarter, suggesting a higher level of debt relative to equity in the company's capital structure. Despite this uptick, the ratio remains within a close range seen in recent quarters.
Overall, the company's debt-to-equity ratio has hovered around the 0.80 to 0.90 range, indicating a moderate level of leverage in the company's capital structure. It is important for stakeholders to monitor this ratio to ensure the company maintains a healthy balance between debt and equity financing to support its operations and growth strategies effectively.
Peer comparison
Dec 31, 2023