Tennant Company (TNC)
Working capital 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 current assets | US$ in thousands | 569,100 | 554,600 | 589,800 | 582,400 | 575,300 | 522,000 | 521,100 | 524,800 | 526,800 | 526,300 | 522,400 | 530,500 | 493,600 | 491,300 | 460,900 | 585,200 | 481,000 | 479,500 | 479,400 | 452,400 |
| Total current liabilities | US$ in thousands | 273,700 | 244,800 | 257,800 | 256,800 | 261,600 | 244,200 | 264,900 | 266,400 | 290,300 | 276,200 | 284,300 | 277,200 | 254,300 | 244,300 | 251,500 | 225,100 | 274,900 | 269,900 | 259,700 | 267,200 |
| Working capital turnover | 4.21 | 3.96 | 3.57 | 3.51 | 3.49 | 3.87 | 4.23 | 4.14 | 4.57 | 4.21 | 4.38 | 3.92 | 4.07 | 4.14 | 4.97 | 3.13 | 5.52 | 5.38 | 5.10 | 6.01 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,243,900K ÷ ($569,100K – $273,700K)
= 4.21
The working capital turnover ratio for Tennant Co. has shown some fluctuations over the past eight quarters. The ratio has ranged from a low of 3.50 in Q1 2023 to a high of 4.24 in Q3 2022. Generally, a higher working capital turnover ratio indicates that the company is efficiently managing its working capital to generate sales.
Tennant Co. has maintained a relatively healthy working capital turnover ratio, with values typically above 3.5. This suggests that the company is effectively utilizing its working capital to support its operations and generate revenue. However, the fluctuations in the ratio over the quarters may warrant further investigation into the company's working capital management practices and the efficiency of its operations.
It is important for Tennant Co. to continue monitoring its working capital turnover ratio to ensure that it remains at optimal levels and supports the company's overall financial health and performance. Further analysis of the company's working capital management strategies and operational efficiency could provide additional insights into areas for improvement and potential opportunities for increasing profitability.
Peer comparison
Dec 31, 2023