Tennant Company (TNC)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | 4.52 | 3.96 | 4.04 | 4.15 | 4.21 | 3.95 | 3.56 | 3.50 | 3.48 | 3.88 | 4.24 | 4.20 | 4.61 | 4.35 | 4.52 | 4.00 | 4.18 | 4.14 | 4.97 | 3.13 |
The inventory turnover ratio for Tennant Company has displayed a declining trend over the last few years, indicating that the company is taking longer to sell its inventory. This may be a cause for concern as it could potentially lead to excess inventory or outdated stock issues.
The absence of data for receivables and payables turnover ratios suggests that information on the efficiency of the company in collecting receivables and managing payables is unavailable. This lack of data limits our ability to assess Tennant Company's performance in these areas.
In terms of working capital turnover, the ratios have fluctuated over the years but have generally remained at a moderate level. This indicates that Tennant Company is effectively utilizing its working capital to generate sales, although there have been slight variations in efficiency.
Overall, the analysis of Tennant Company's activity ratios suggests that there are areas, such as inventory management and the tracking of receivables and payables, where further attention and monitoring may be needed to improve operational efficiency and financial performance.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 91.06 | 101.68 | 96.83 | 93.39 | 89.69 | 94.77 | 103.38 | 107.33 | 112.33 | 108.53 | 102.45 | 101.67 | 89.80 | 90.54 | 85.52 | 84.82 | 79.04 | 80.58 | 89.07 | 84.57 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Days of Inventory on Hand (DOH) Analysis:
The Days of Inventory on Hand (DOH) for Tennant Company shows fluctuations over the years. It averaged around 90 days in 2020, decreased in 2021, and then started to increase again. In the most recent period, the DOH was around 90 days, implying that the company holds inventory for approximately three months before it is sold.
The increasing trend in DOH since March 31, 2023, indicates a potential issue with inventory management. The company may be overstocking or facing challenges in selling its products efficiently. It is essential for Tennant Company to monitor and optimize its inventory levels to improve cash flow and reduce carrying costs.
Days of Sales Outstanding (DSO) and Number of Days of Payables Analysis:
Unfortunately, the data provided for Days of Sales Outstanding (DSO) and Number of Days of Payables is missing. Therefore, we are unable to analyze these activity ratios for Tennant Company based on the available information. These ratios are crucial for assessing the efficiency of receivables collection and payable management, respectively. Without this data, a comprehensive analysis of Tennant Company's overall working capital management is limited.
In conclusion, Tennant Company should focus on optimizing its inventory levels to ensure efficient cash flow management and avoid potential issues arising from excessive inventory holdings. Further insight into the company's receivables and payables management would provide a more complete picture of its overall activity ratio performance.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Total asset turnover | 1.08 | 1.04 | 1.08 | 1.08 | 1.12 | 1.15 | 1.07 | 1.04 | 1.01 | 1.07 | 1.06 | 1.03 | 1.03 | 1.02 | 1.00 | 0.94 | 0.92 | 0.96 | 1.01 | 0.98 |
The fixed asset turnover ratio for Tennant Company has fluctuated over the years, indicating the efficiency of generating sales from fixed assets. The ratio ranged from a high of 6.48 in March 2020 to a low of 4.95 in June 2021 before showing an upward trend, reaching 6.40 by June 30, 2023.
On the other hand, the total asset turnover ratio, which measures the efficiency of utilizing all assets to generate sales, has generally shown an increasing trend. The ratio was 0.98 in March 2020 and steadily increased to 1.08 by June 30, 2024.
Overall, while the company may have had some fluctuations in its fixed asset turnover ratio, the total asset turnover ratio has shown improvement over time, indicating the company's ability to generate sales efficiently using its total assets.