Tennant Company (TNC)
Fixed asset turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,243,900 | 1,226,600 | 1,185,200 | 1,141,500 | 1,094,200 | 1,075,300 | 1,083,800 | 1,070,500 | 1,081,100 | 1,053,100 | 1,043,600 | 991,900 | 975,000 | 1,022,800 | 1,041,600 | 1,127,300 | 1,137,700 | 1,128,100 | 1,120,700 | 1,113,200 |
| Property, plant and equipment | US$ in thousands | 491,100 | 182,000 | 184,600 | 182,800 | 179,900 | 166,100 | 169,300 | 171,200 | 172,800 | 169,700 | 172,100 | 170,900 | 185,500 | 178,300 | 178,600 | 173,900 | 173,300 | 167,500 | 173,300 | 174,900 |
| Fixed asset turnover | 2.53 | 6.74 | 6.42 | 6.24 | 6.08 | 6.47 | 6.40 | 6.25 | 6.26 | 6.21 | 6.06 | 5.80 | 5.26 | 5.74 | 5.83 | 6.48 | 6.56 | 6.73 | 6.47 | 6.36 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $1,243,900K ÷ $491,100K
= 2.53
The fixed asset turnover ratio for Tennant Co. has been relatively stable and consistently high over the past eight quarters, ranging from 6.07 to 6.72. This indicates that the company efficiently utilizes its fixed assets to generate sales revenue. A higher fixed asset turnover ratio generally signifies better asset utilization efficiency, as it shows the company is generating more revenue relative to its investment in fixed assets. However, it is essential to consider industry standards and historical trends to fully interpret the significance of these ratios. In the case of Tennant Co., the consistently high fixed asset turnover ratios suggest the company effectively manages and utilizes its fixed assets to drive sales.
Peer comparison
Dec 31, 2023