The Timken Co (The Timken Co) Inventory Turnover : 0.63 (As of Dec. 2023)

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What is The Timken Co Inventory Turnover?

Inventory Turnover measures how fast the company turns over its inventory within a year. It is calculated as Cost of Goods Sold divided by Total Inventories. The Timken Co's Cost of Goods Sold for the three months ended in Dec. 2023 was $760 Mil. The Timken Co's Average Total Inventories for the quarter that ended in Dec. 2023 was $1,216 Mil. The Timken Co's Inventory Turnover for the quarter that ended in Dec. 2023 was 0.63.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. The Timken Co's Days Inventory for the three months ended in Dec. 2023 was 145.99.

Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue. The Timken Co's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 1.11.

The Timken Co Inventory Turnover Historical Data

The historical data trend for The Timken Co's Inventory Turnover 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 Inventory Turnover Chart

The Timken Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

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3.16

2.97

3.17

2.83

2.69

The Timken Co Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Inventory Turnover	Get a 7-Day Free Trial															0.67	0.70	0.70	0.64	0.63

The Timken Co Inventory Turnover Calculation

The Timken Co's Inventory Turnover for the fiscal year that ended in Dec. 2023 is calculated as

	Inventory Turnover (A: Dec. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2023 )	/ (	(Total Inventories (A: Dec. 2022 )	+	Total Inventories (A: Dec. 2023 ))	/	count )
=	3259.9	/ (	(1191.3	+	1229.1)	/	2 )
=	3259.9	/	1210.2
=	2.69

The Timken Co's Inventory Turnover for the quarter that ended in Dec. 2023 is calculated as

	Inventory Turnover (Q: Dec. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Dec. 2023 )	/ (	(Total Inventories (Q: Sep. 2023 )	+	Total Inventories (Q: Dec. 2023 ))	/	count )
=	759.9	/ (	(1202.4	+	1229.1)	/	2 )
=	759.9	/	1215.75
=	0.63

The Timken Co (NYSE:TKR) Inventory Turnover Explanation

Inventory Turnover measures how fast the company turns over its inventory within a year. A higher Inventory Turnover means the company has light inventory. Therefore the company spends less money on storage, write downs, and obsolete inventory. If the inventory is too light, it may affect sales because the company may not have enough to meet demand.

1. Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

The Timken Co's Days Inventory for the three months ended in Dec. 2023 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Dec. 2023 )	/	Cost of Goods Sold (Q: Dec. 2023 )	*	Days in Period
	=	1215.75	/	759.9	*	365 / 4
	=	145.99

2. Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.

The Timken Co's Inventory to Revenue for the quarter that ended in Dec. 2023 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	1215.75	/	1091.2
	=	1.11

Be Aware

Usually retailers pile up their inventories at holiday seasons to meet the stronger demand. Therefore, the inventory of a particular quarter of a year should not be used to calculate Inventory Turnover. An average inventory is a better indication.

The Timken Co Inventory Turnover Related Terms

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The Timken Co (The Timken Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » The Timken Co (NYSE:TKR) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

TKR:Mexico 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, 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 authorised 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 Mobile Industries and Process industries. Timken generates its revenue in the United States of America.

Executives

Philip D. Fracassa	officer: CFO	1835 DUEBER AVENUE SW, CANTON OH 44706-0928
Christopher A Coughlin	officer: President-proc ind & supp chn	1835 DUEBER AVE SW, CANTON OH 44706
Timken John M Jr	director	200 MARKET AVE N STE 210, CANTON OH 44702
Hansal N. Patel	officer: VP, GC, and Secretary	4500 MOUNT PLEASANT ST. NW, NORTH CANTON OH 44720
Richard G Kyle	officer: President-mob ind & aerospace	1835 DUEBER AVE SW, CANTON OH 44706
Jacqueline F Woods	director
Natasha Pollock	officer: VP - Human Resources	4500 MT. PLEASANT ST. NW, NORTH CANTON OH 44720
Landin Bo Hans Olof	officer: Group Vice President	4500 MT. PLEASANT ST. NW, NORTH CANTON OH 44720
Timken Ward J Jr	director, officer: Chairman of the Board	200 MARKET AVE N STE 210, CANTON OH 44702
Ronald J Myers	officer: VP - Human Resources	4500 MT. PLEASANT ST. NW, NORTH CANTON OH 44720
Sarah C Lauber	director	833 EAST MICHIGAN STREET, SUITE 900, MILWAUKEE WI 53202
Shelly Marie Chadwick	officer: Chief Accounting Officer	6070 PARKLAND BLVD, MAYFIELD HTS. OH 44124
Karl Andreas Roellgen	officer: VP - Europe, Asia and Africa	4500 MT. PLEASANT ST. NW, NORTH CANTON OH 44720
Frank C Sullivan	director
Elizabeth Ann Harrell	director	4500 MT. PLEASANT ST. NW, NORTH CANTON OH 44720