Timken Company (TKR)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 6,411,000 | 6,541,700 | 5,772,400 | 5,170,700 | 5,041,600 |
| Total stockholders’ equity | US$ in thousands | 2,826,500 | 2,582,400 | 2,268,300 | 2,294,900 | 2,152,900 |
| Financial leverage ratio | 2.27 | 2.53 | 2.54 | 2.25 | 2.34 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $6,411,000K ÷ $2,826,500K
= 2.27
The financial leverage ratio of Timken Company has exhibited some fluctuations over the past five years. In December 2020, the ratio stood at 2.34, indicating that the company’s reliance on debt to finance its operations was moderate. By the end of December 2021, the ratio decreased to 2.25, suggesting a slight reduction in the company's financial leverage.
However, in the subsequent years, the financial leverage ratio saw some variability. By December 2022, the ratio increased to 2.54, indicating a higher reliance on debt compared to the previous year. This trend continued into December 2023, with the ratio holding steady at 2.53.
In the most recent period, December 2024, the financial leverage ratio decreased to 2.27, suggesting a slight decrease in the company's reliance on debt for its capital structure compared to the prior year.
Overall, the financial leverage ratio of Timken Company has shown some fluctuations over the analyzed period, indicating varying levels of debt utilization in its capital structure. It is important for stakeholders to closely monitor these changes to assess the company's risk exposure and financial stability.
Peer comparison
Dec 31, 2024