The historical rank and industry rank for The Timken Co's Gross Margin % or its related term are showing as below:
TKR'
s Gross Margin % Range Over the Past 10 Years
Min: 26.46 Med: 28.9 Max: 31.64
Current: 31.64
During the past 13 years, the highestGross Margin % of The Timken Co was 31.64%. The lowest was 26.46%. And the median was 28.90%.
TKR's Gross Margin % is ranked better than 64.25% of 2937
companies
in the Industrial Products industry
Industry Median: 26.42
vs TKR: 31.64
The Timken Co had a gross margin of 30.36% for the quarter that ended in Dec. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for The Timken Co was 1.00% per year.
The Timken Co Gross Margin % Historical Data
The historical data trend for The Timken Co's Gross Margin % 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.
Competitive Comparison of The Timken Co's Gross Margin %
For the Tools & Accessories subindustry, The Timken Co's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
The Timken Co's Gross Margin % Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, The Timken Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where The Timken Co's Gross Margin % falls into.
* 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
The Timken Co (NYSE:TKR) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
The Timken Co had a gross margin of 30.36% for the quarter that ended in Dec. 2023 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
The Timken Co Gross Margin % Related Terms
Thank you for viewing the detailed overview of The Timken Co's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
The Timken Co (The Timken Co) Business Description
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.
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