Item 5. Market for Registrant’s Common Equity
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities (continued)
*Total return assumes reinvestment of dividends. Fiscal years ending December 31.
2018 2019 2020 2021 2022
Timken $ 78 $ 120 $ 169 $ 154 $ 160
S&P 500 96 126 149 192 157
S&P 400 Industrials 85 114 132 170 151
The line graph compares the cumulative total shareholder returns over five years for The Timken Company, the S&P 500 Stock Index and the S&P 400 Industrials Index. The graph assumes, in each case, an initial investment of $100 on January 1, 2018, in Timken common shares, S&P 500 Index and S&P 400 Industrials Index, based on market prices at the end of each fiscal year through and including December 31, 2022 , and reinvestment of dividends.
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Item 6. Selected Financial Data
Summary of Operations and Other Comparative Data:
(Dollars in millions, except per share, shareholder and per employee data) 2022 2021 2020 2019 2018
Statements of Income
Net sales $ 4,496.7 $ 4,132.9 $ 3,513.2 $ 3,789.9 $ 3,580.8
Gross profit 1,288.1 1,102.5 1,009.9 1,141.8 1,040.1
Operating income 606.9 513.1 454.9 516.4 454.5
Net income 417.0 381.5 292.4 374.7 305.5
Net income attributable to The Timken Company $ 407.4 $ 369.1 $ 284.5 $ 362.1 $ 302.8
Basic earnings per share (1)
5.54 4.86 3.78 4.78 3.93
Diluted earnings per share (2)
5.48 4.79 3.72 4.71 3.86
Weighted average number of shares outstanding - basic 73,602,247 75,885,316 75,354,280 75,758,123 77,119,602
Weighted average number of shares outstanding - diluted 74,323,839 77,006,589 76,401,366 76,896,565 78,337,481
Other Comparative Data
Total assets $ 5,772.4 $ 5,170.7 $ 5,041.6 $ 4,859.9 $ 4,445.2
Total liabilities 3,419.5 2,793.0 2,816.4 2,905.1 2,802.5
Total equity 2,352.9 2,377.7 2,225.2 1,954.8 1,642.7
Net income attributable to The Timken Company / net sales 9.1 % 8.9 % 8.1 % 9.6 % 8.5 %
Net cash provided from operating activities 463.8 387.3 577.6 550.1 332.5
Capital expenditures 178.4 148.3 121.6 140.6 112.6
Capital expenditures / net sales 4.0 % 3.6 % 3.5 % 3.7 % 3.1 %
Depreciation and amortization 164.0 167.8 167.1 160.6 146.0
Dividends per share $ 1.23 $ 1.19 $ 1.13 $ 1.12 $ 1.11
Number of employees at year-end 19,404 18,029 17,430 18,829 17,477
Non-GAAP Financial Information (3)
Adjusted earnings per share $ 6.02 $ 4.72 $ 4.10 $ 4.60 $ 4.18
Adjusted earnings before interest, taxes, depreciation
and amortization (EBITDA) $ 855.9 $ 718.0 $ 658.9 $ 726.3 $ 646.5
Adjusted EBITDA Margin (% of net sales) 19.0 % 17.4 % 18.8 % 19.2 % 18.1 %
Free cash flow 285.4 239.0 456.0 409.5 219.9
Adjusted return on invested capital (ROIC) 12.6 % 11.0 % 9.9 % 11.9 % 12.8 %
(1) Based on weighted average number of shares outstanding during the year.
(2) Based on weighted average number of shares outstanding during the year, assuming dilution of stock options and awards.
(3) Refer to page 38 for reconciliations to the most directly comparable generally accepted accounting principal ("GAAP") financial measures.
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