Tennant Company (TNC)
Number of days of payables
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Payables turnover | 9.75 | 10.83 | 9.20 | 8.69 | 7.91 | 9.17 | 8.44 | 8.45 | 8.21 | 8.46 | 7.65 | 7.40 | 6.59 | 7.07 | 7.97 | 7.01 | 7.18 | 7.17 | 6.82 | 7.05 | |
| Number of days of payables | days | 37.44 | 33.72 | 39.69 | 41.99 | 46.14 | 39.81 | 43.26 | 43.19 | 44.44 | 43.16 | 47.71 | 49.31 | 55.42 | 51.60 | 45.81 | 52.10 | 50.80 | 50.93 | 53.53 | 51.77 |
December 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 9.75
= 37.44
To analyze Tennant Co.'s number of days of payables over the past eight quarters, we observe fluctuations in the payment period the company takes to settle its accounts payable.
From Q1 2022 to Q1 2023, the number of days of payables has varied, reaching a peak of 68.56 days in Q4 2022 and a low of 50.57 days in Q3 2023. This indicates that Tennant Co. was taking a longer time to pay its payables in Q4 2022 compared to Q3 2023.
The trend shows some inconsistency in the payment cycle, with periods of relatively high and low numbers of days of payables. However, it is important to further investigate the reasons behind these fluctuations and whether they are in line with industry norms and company policies. A prolonged number of days of payables may indicate cash flow constraints or potential inefficiencies in managing working capital, while a significant decrease may signal aggressive cash management practices that could strain relationships with suppliers in the long term.
Peer comparison
Dec 31, 2023