Tennant Company (TNC)
Total asset 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 |
| Total assets | US$ in thousands | 1,113,400 | 1,059,300 | 1,108,300 | 1,100,700 | 1,085,100 | 1,005,100 | 1,025,200 | 1,050,200 | 1,061,700 | 1,067,100 | 1,081,400 | 1,080,800 | 1,082,600 | 1,063,500 | 1,028,200 | 1,150,200 | 1,062,900 | 1,045,100 | 1,070,800 | 1,040,700 |
| Total asset turnover | 1.12 | 1.16 | 1.07 | 1.04 | 1.01 | 1.07 | 1.06 | 1.02 | 1.02 | 0.99 | 0.97 | 0.92 | 0.90 | 0.96 | 1.01 | 0.98 | 1.07 | 1.08 | 1.05 | 1.07 |
December 31, 2023 calculation
Total asset turnover = Revenue (ttm) ÷ Total assets
= $1,243,900K ÷ $1,113,400K
= 1.12
Tennant Co.'s total asset turnover has shown variability over the past eight quarters, ranging from 1.01 to 1.15. The total asset turnover ratio reflects how efficiently the company is utilizing its assets to generate revenue. A higher total asset turnover indicates that the company is generating more revenue per dollar of assets invested, which is generally a positive sign of asset management efficiency.
In Tennant Co.'s case, the general trend shows a relatively stable total asset turnover ratio, with some fluctuations. The higher ratios in Q3 2023 and Q4 2023, compared to the earlier quarters, suggest that the company has improved its efficiency in generating revenue from its assets during these periods.
Overall, maintaining a total asset turnover ratio above 1 indicates that Tennant Co. is effectively using its assets to drive revenue growth. It is important for the company to consistently monitor and optimize this ratio to ensure continued operational efficiency and financial performance.
Peer comparison
Dec 31, 2023