Tennant Company (TNC)

Working capital turnover

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Revenue US$ in thousands 1,286,700 1,243,600 1,092,200 1,090,800 1,001,000
Total current assets US$ in thousands 31,000 569,100 575,300 526,800 493,600
Total current liabilities US$ in thousands 292,200 273,700 261,600 290,300 254,300
Working capital turnover 4.21 3.48 4.61 4.18

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,286,700K ÷ ($31,000K – $292,200K)
= —

The working capital turnover ratio for Tennant Company has shown variability over the years. In 2020, it stood at 4.18, indicating that the company generated $4.18 in revenue for every dollar of working capital invested. This ratio improved in 2021 to 4.61, suggesting more efficient utilization of working capital to generate sales. However, there was a decline in 2022 to 3.48, which may raise concerns about the company's ability to efficiently convert working capital into sales during that period.

The ratio recovered in 2023, reaching 4.21, which implies a better performance in utilizing working capital to generate revenue. Notably, the data for 2024 is not available, denoted by a dash in the dataset. It would be important for stakeholders to monitor this metric closely to assess Tennant Company's effectiveness in managing its working capital to support operational activities and generate sales in the future.


Peer comparison

Dec 31, 2024