Tennant Company (TNC)
Inventory 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 736,700 | 724,400 | 715,100 | 709,000 | 715,800 | 711,000 | 700,500 | 692,400 | 671,300 | 671,300 | 671,900 | 662,000 | 652,800 | 638,200 | 632,500 | 591,700 | 589,700 | 604,700 | 614,300 | 669,800 |
| Inventory | US$ in thousands | 183,800 | 201,800 | 189,700 | 181,400 | 175,900 | 184,600 | 198,400 | 203,600 | 206,600 | 199,600 | 188,600 | 184,400 | 160,600 | 158,300 | 148,200 | 137,500 | 127,700 | 133,500 | 149,900 | 155,200 |
| Inventory turnover | 4.01 | 3.59 | 3.77 | 3.91 | 4.07 | 3.85 | 3.53 | 3.40 | 3.25 | 3.36 | 3.56 | 3.59 | 4.06 | 4.03 | 4.27 | 4.30 | 4.62 | 4.53 | 4.10 | 4.32 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $736,700K ÷ $183,800K
= 4.01
Inventory turnover is a key financial ratio that measures the efficiency of a company's inventory management by indicating how many times a company's inventory is sold and replaced over a specific period.
In the case of Tennant Company, the inventory turnover ratio fluctuated over the past few years. For the period from March 31, 2020, to December 31, 2024, the inventory turnover ranged from a low of 3.25 to a high of 4.62.
A declining trend in inventory turnover may suggest that the company is holding onto its inventory for a longer period before selling it, which could tie up cash and lead to potential obsolescence risks. On the other hand, a rising trend in inventory turnover could indicate efficient inventory management and quicker sales.
Looking at Tennant Company's data, the inventory turnover ratio peaked at 4.62 on December 31, 2020, but subsequently decreased to 3.59 on March 31, 2022. However, it increased again to 4.07 by December 31, 2023. The latest available data as of December 31, 2024, shows an inventory turnover of 4.01.
Overall, while Tennant Company experienced some fluctuations in its inventory turnover ratio over the years, the general trend shows variability but remains within a relatively stable range. It would be beneficial to compare Tennant's inventory turnover ratio with industry benchmarks to assess its competitiveness and efficiency in managing inventory.
Peer comparison
Dec 31, 2024
Dec 31, 2024