Tennant Company (TNC)
Total asset 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 |
| Total assets | US$ in thousands | 1,113,400 | 1,085,100 | 1,061,700 | 1,082,600 | 1,062,900 |
| Total asset turnover | 1.12 | 1.01 | 1.02 | 0.90 | 1.07 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $1,243,900K ÷ $1,113,400K
= 1.12
The total asset turnover ratio for Tennant Co. has fluctuated over the past five years, ranging from 0.92 to 1.12. This ratio measures the company's efficiency in generating sales revenue from its assets. A higher total asset turnover indicates that the company is generating more sales from its assets, reflecting efficient asset utilization.
In 2023, Tennant Co. achieved a total asset turnover of 1.12, indicating an improvement in asset utilization compared to the previous year. This suggests that the company was able to generate more sales relative to its total assets during the year.
However, in 2020, the total asset turnover was at its lowest at 0.92, indicating that the company may have faced challenges in effectively utilizing its assets to generate sales revenue. It's important for Tennant Co. to continuously monitor and improve its asset turnover ratio to ensure optimal efficiency in utilizing its resources to drive revenue growth.
Peer comparison
Dec 31, 2023