Tennant Company (TNC)
Receivables turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,243,900 | 1,226,600 | 1,185,200 | 1,141,500 | 1,094,200 | 1,075,300 | 1,083,800 | 1,070,500 | 1,081,100 | 1,053,100 | 1,043,600 | 991,900 | 975,000 | 1,022,800 | 1,041,600 | 1,127,300 | 1,137,700 | 1,128,100 | 1,120,700 | 1,113,200 |
| Receivables | US$ in thousands | 247,600 | 241,900 | 263,500 | 254,300 | 251,500 | 219,300 | 215,700 | 199,500 | 211,400 | 198,400 | 207,600 | 190,100 | 195,400 | 198,000 | 180,300 | 203,800 | 216,500 | 204,900 | 222,100 | 204,200 |
| Receivables turnover | 5.02 | 5.07 | 4.50 | 4.49 | 4.35 | 4.90 | 5.02 | 5.37 | 5.11 | 5.31 | 5.03 | 5.22 | 4.99 | 5.17 | 5.78 | 5.53 | 5.25 | 5.51 | 5.05 | 5.45 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $1,243,900K ÷ $247,600K
= 5.02
The receivables turnover for Tennant Co. has been relatively stable over the past eight quarters, ranging from 4.34 to 5.44. The highest turnover ratio was recorded in Q1 2022 at 5.44, indicating that the company collected its accounts receivables approximately 5.44 times during that quarter.
The recent quarters (Q4 2022 to Q4 2023) have shown a slight decrease in receivables turnover, with the ratio declining from 4.91 to 5.02. This suggests that Tennant Co. took slightly longer to collect its outstanding receivables in Q4 2023 compared to previous quarters.
Overall, a consistent and relatively high receivables turnover ratio indicates that Tennant Co. is effectively managing its accounts receivables and collecting payments from customers in a timely manner. However, a gradual decline in the turnover ratio warrants further monitoring to ensure the company maintains efficient credit and collection practices.
Peer comparison
Dec 31, 2023