Tennant Company (TNC)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 736,700 | 715,800 | 671,300 | 652,800 | 593,200 |
| Inventory | US$ in thousands | 183,800 | 175,900 | 206,600 | 160,600 | 127,700 |
| Inventory turnover | 4.01 | 4.07 | 3.25 | 4.06 | 4.65 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $736,700K ÷ $183,800K
= 4.01
The inventory turnover ratio for Tennant Company has shown some fluctuations over the past five years. In 2020, the ratio stood at 4.65, indicating that the company's inventory was turned over approximately 4.65 times during that year. However, in 2021, the ratio decreased to 4.06, suggesting a slight decrease in the efficiency of inventory management.
Subsequently, there was a more significant drop in 2022, with the inventory turnover ratio falling to 3.25. This sharp decline may indicate potential issues such as excess inventory levels or slowing sales. However, there was a rebound in 2023, as the ratio increased to 4.07, showing improved efficiency in managing inventory.
By the end of 2024, the inventory turnover ratio had stabilized at 4.01, which is closer to the levels seen in the earlier years. Overall, Tennant Company has demonstrated a reasonable ability to manage its inventory turnover, with some fluctuations observed over the years. It is essential for the company to monitor this ratio closely to ensure optimal inventory management practices and efficient use of resources.
Peer comparison
Dec 31, 2024