The Timken Co (MEX:TKR) ROCE % : 10.27% (As of Sep. 2024)

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What is The Timken Co ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. The Timken Co's annualized ROCE % for the quarter that ended in Sep. 2024 was 10.27%.

The Timken Co ROCE % Historical Data

The historical data trend for The Timken Co's ROCE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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The Timken Co ROCE % Chart

The Timken Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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13.55

11.45

12.84

13.51

12.17

The Timken Co Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
ROCE %	Get a 7-Day Free Trial															12.27	7.43	14.43	13.45	10.27

The Timken Co ROCE % Calculation

The Timken Co's annualized ROCE % for the fiscal year that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	10883.888	/	( ( (112538.71 - 19737.75)	+	(111040.438 - 24974.211) )	/ 2 )
	=	10883.888	/	( (92800.96	+	86066.227)	/ 2 )
	=	10883.888	/	89433.5935
	=	12.17 %

The Timken Co's ROCE % of for the quarter that ended in Sep. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Sep. 2024 )		(Q: Jun. 2024 )		(Q: Sep. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Sep. 2024 )		(Q: Jun. 2024 )		(Q: Sep. 2024 )
	=	11223.472	/	( ( (120471.165 - 17233.721)	+	(133252.136 - 17924.08) )	/ 2 )
	=	11223.472	/	( ( 103237.444	+	115328.056 )	/ 2 )
	=	11223.472	/	109282.75
	=	10.27 %

(1) Note: The EBIT data used here is four times the quarterly (Sep. 2024) EBIT data.

The Timken Co (MEX:TKR) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

The Timken Co ROCE % Related Terms

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The Timken Co Business Description

Industry

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Comparable Companies

Traded in Other Exchanges

TKR:USA TKH:Germany TKH:Germany

Address

4500 Mount Pleasant Street North West, North Canton, OH, USA, 44720-5450

Website

https://www.timken.com

The Timken Company is a manufacturer of bearings, gear belts, industrial motion products and chain-related products. The company sells its portfolio of bearings, including tapered, spherical and cylindrical roller bearings, and thrust and ball bearings, through a network of authorized dealers to end users or directly to original equipment manufacturers. End-market sectors include general industrial, automotive, rail, energy, heavy truck, defense, agriculture, metals, mining, civil aerospace, construction, pulp and paper, and cement industries. Its segments are Engineered Bearings and Industrial Motion. Timken generates majority of its revenue in the United States of America.