Timken Company (TKR)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 6,541,700 | 6,244,700 | 6,251,300 | 5,853,000 | 5,772,400 | 5,281,900 | 5,442,500 | 5,458,500 | 5,170,700 | 5,145,600 | 5,166,200 | 5,106,200 | 5,041,600 | 4,909,100 | 4,901,000 | 4,980,000 | 4,859,900 | 4,565,300 | 4,674,200 | 4,680,700 |
| 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 |
| Financial leverage ratio | 2.53 | 2.52 | 2.47 | 2.49 | 2.54 | 2.52 | 2.47 | 2.40 | 2.25 | 2.24 | 2.26 | 2.35 | 2.34 | 2.42 | 2.60 | 2.74 | 2.60 | 2.62 | 2.73 | 2.86 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $6,541,700K ÷ $2,582,400K
= 2.53
The financial leverage ratio of Timken Co. has shown consistent levels around the range of 2.40 to 2.54 over the past eight quarters. This ratio indicates that Timken Co. relies on debt as a source of financing, with an average of approximately 2.50. The stability of the financial leverage ratio suggests that the company has been maintaining a relatively consistent level of debt in relation to its equity over the period analyzed. Further analysis would be required to determine if this level of debt is optimal for the company's operations and growth strategy.
Peer comparison
Dec 31, 2023