Transverse flux machine(TFM) has been developed to drive a machine of large input power at low-speed. However, it has complicated structure and large torque ripple due to its inherent structure. In this paper the characteristics of torque of a rotatory two-phase TFM are analyzed by using the 3-dimensional finite element method and optimal design. This research shows that one of the effective design variables is the skew angle of permanent magnet. The skew angles of permanent magnet are optimized by using a genetic algorithm. It also shows that the proposed optimal skew magnet not only increases average torque but also decreases torque ripple of a rotatory two-phase TFM.