Tennant Company (TNC)
Fixed asset turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,286,700 | 1,269,200 | 1,258,100 | 1,248,800 | 1,243,600 | 1,223,200 | 1,181,400 | 1,139,900 | 1,092,200 | 1,077,600 | 1,086,700 | 1,085,600 | 1,090,800 | 1,087,400 | 1,077,300 | 1,012,200 | 1,001,000 | 1,022,800 | 1,041,600 | 1,127,300 |
| Property, plant and equipment | US$ in thousands | — | — | — | — | — | 214,400 | 184,600 | 182,800 | 211,700 | 197,500 | 169,300 | 171,200 | 214,100 | 211,300 | 217,700 | 170,900 | 185,500 | 178,300 | 178,600 | 173,900 |
| Fixed asset turnover | — | — | — | — | — | 5.71 | 6.40 | 6.24 | 5.16 | 5.46 | 6.42 | 6.34 | 5.09 | 5.15 | 4.95 | 5.92 | 5.40 | 5.74 | 5.83 | 6.48 |
December 31, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $1,286,700K ÷ $—K
= —
The fixed asset turnover ratio measures how efficiently a company is generating revenue from its investment in fixed assets. A higher fixed asset turnover ratio signifies better utilization of fixed assets to generate sales.
Analyzing Tennant Company's fixed asset turnover over the period from March 31, 2020, to December 31, 2024, we observe fluctuations in the ratio. The ratio started at a relatively high level of 6.48 in March 2020, indicating efficient utilization of fixed assets to generate revenue. However, it experienced a slight decline to 5.83 by June 2020 but remained above 5, reflecting continued efficiency.
The ratio declined further to 4.95 by June 2021, signaling a potential decrease in revenue generation from fixed assets. Subsequently, there was a fluctuating pattern in the ratio, with values ranging between 5 and 6.42 from September 2021 to June 2023.
The most recent available data points show that the fixed asset turnover ratio stood at 5.16 in December 2022, which suggests some improvement from the lower values observed in the previous periods. The trend indicates that the company may be working on optimizing its use of fixed assets to enhance revenue generation.
However, the absence of data for the period from March 31, 2024, signifies a lack of information to assess the recent performance of Tennant Company in terms of fixed asset turnover. Further monitoring of the fixed asset turnover ratio will be necessary to understand the company's ongoing efficiency in utilizing fixed assets to drive sales.
Peer comparison
Dec 31, 2024