Tennant Company (TNC)

Days of Sales Outstanding (DSO) is a key financial ratio used to evaluate how efficiently a company manages its accounts receivable. It reflects the average number of days it takes for a company to collect payment after making a sale. A lower DSO is generally preferred as it indicates faster collection of receivables and better liquidity.

Analyzing Tennant Co.'s DSO over the past five years reveals fluctuations in the company's receivables collection efficiency. In 2023, the DSO decreased to 72.67 days from 84.05 days in 2022, indicating an improvement in collecting payments from customers. This suggests that Tennant Co. has been more efficient in managing its accounts receivable in the most recent period.

Comparing the DSO to previous years, we see that Tennant Co. had relatively consistent performance in 2021, 2020, and 2019 with DSO figures ranging between 70.74 and 72.89 days. These numbers suggest that the company maintained a relatively stable level of efficiency in collecting payments during those years.

Overall, while there has been some variability in Tennant Co.'s DSO over the past five years, the recent decrease in DSO in 2023 compared to 2022 is a positive indicator of improved accounts receivable management. Investors and analysts may view this trend favorably as it signals enhanced liquidity and potentially better cash flow generation for the company in the most recent period.

Peer comparison

Dec 31, 2023