Tennant Company (TNC)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 6.17 | 5.78 | 5.24 | 5.02 | 4.83 | 5.05 | 5.39 | 5.50 | 6.21 | 6.27 | 6.12 | 4.83 | 5.48 | 4.56 | 4.11 | 4.32 | 4.50 | 4.18 | 4.22 | 4.23 | |
| DOH | days | 59.11 | 63.19 | 69.68 | 72.69 | 75.60 | 72.23 | 67.77 | 66.37 | 58.74 | 58.20 | 59.67 | 75.57 | 66.58 | 80.10 | 88.72 | 84.41 | 81.03 | 87.28 | 86.50 | 86.30 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.17
= 59.11
The days of inventory on hand (DOH) for Tennant Co. has exhibited some fluctuation over the past eight quarters. In Q4 2023, Tennant Co. had 89.69 days of inventory on hand, which decreased from 94.77 days in the previous quarter (Q3 2023). This decline may indicate more efficient inventory management during the period.
Comparing Q4 2023 to the same quarter in the previous year (Q4 2022), there has been a noticeable improvement in inventory management as the DOH decreased from 112.33 days to 89.69 days. This reduction signifies a more optimized inventory turnover and may suggest better control over inventory levels.
Overall, Tennant Co. has shown a trend of reducing the days of inventory on hand over the past two years, with some fluctuations observed on a quarterly basis. This indicates a potential improvement in inventory management efficiency, which can have positive implications for working capital management and overall profitability. It suggests that Tennant Co. may be effectively managing its inventory levels to meet customer demand while minimizing carrying costs and avoiding excess stock accumulation.
Peer comparison
Dec 31, 2023