Tennant Company (TNC)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,243,900 | 1,094,700 | 1,081,300 | 975,000 | 1,137,600 |
| Receivables | US$ in thousands | 247,600 | 251,500 | 211,400 | 195,400 | 216,500 |
| Receivables turnover | 5.02 | 4.35 | 5.11 | 4.99 | 5.25 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $1,243,900K ÷ $247,600K
= 5.02
The receivables turnover ratio for Tennant Co. has exhibited some fluctuations over the past five years. In 2023, the company's receivables turnover ratio improved to 5.02 from 4.34 in 2022, indicating that the company collected its accounts receivables more efficiently during the year. However, it is slightly lower than the ratio in 2021 (5.16) and 2019 (5.09), suggesting a minor decline in receivables turnover efficiency compared to those years. The company maintained a relatively stable turnover ratio in 2020 at 5.01.
Overall, Tennant Co. appears to have effectively managed its accounts receivables turnover in recent years, with variations likely influenced by factors such as sales policies, credit terms, and collection efforts. The increase in receivables turnover in 2023 compared to 2022 is a positive sign of improved efficiency in collecting receivables, although there may be room for further analysis to understand the underlying reasons for these fluctuations.
Peer comparison
Dec 31, 2023