Tennant Company (TNC)
Days of sales outstanding (DSO)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 5.02 | 5.07 | 4.50 | 4.49 | 4.35 | 4.90 | 5.02 | 5.37 | 5.11 | 5.31 | 5.03 | 5.22 | 4.99 | 5.17 | 5.78 | 5.53 | 5.25 | 5.51 | 5.05 | 5.45 | |
| DSO | days | 72.65 | 71.98 | 81.15 | 81.31 | 83.89 | 74.44 | 72.64 | 68.02 | 71.37 | 68.76 | 72.61 | 69.95 | 73.15 | 70.66 | 63.18 | 65.99 | 69.46 | 66.30 | 72.34 | 66.95 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.02
= 72.65
The days of sales outstanding (DSO) for Tennant Co. have shown some fluctuation over the past several quarters. In Q4 2023, the DSO was recorded at 72.67 days, slightly higher than the previous quarter at 72.18 days. This indicates that the company took a bit longer to collect its accounts receivable compared to the previous quarter.
Looking further back, in Q2 2023 and Q1 2023, the DSO was higher at 81.41 days and 81.43 days, respectively, suggesting that Tennant Co. significantly extended the time it took to collect receivables during that period.
Comparing with the same quarters in the previous year, there has been some improvement. The DSO in Q4 2023 is lower than in Q4 2022, indicating that the company has been more efficient in collecting its receivables. However, there was a peak in Q2 2022 at 84.05 days, which may have been a cause for concern at that time.
Overall, Tennant Co. should continue to monitor its DSO closely to ensure efficient management of its accounts receivable and maintain a healthy cash flow position.
Peer comparison
Dec 31, 2023