Tennant Company (TNC)
Working capital turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,286,700 | 1,269,200 | 1,258,100 | 1,248,800 | 1,243,600 | 1,223,200 | 1,181,400 | 1,139,900 | 1,092,200 | 1,077,600 | 1,086,700 | 1,085,600 | 1,090,800 | 1,087,400 | 1,077,300 | 1,012,200 | 1,001,000 | 1,022,800 | 1,041,600 | 1,127,300 |
| Total current assets | US$ in thousands | 576,600 | 593,900 | 577,800 | 561,100 | 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 |
| Total current liabilities | US$ in thousands | 292,200 | 273,500 | 266,200 | 260,400 | 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 |
| Working capital turnover | 4.52 | 3.96 | 4.04 | 4.15 | 4.21 | 3.95 | 3.56 | 3.50 | 3.48 | 3.88 | 4.24 | 4.20 | 4.61 | 4.35 | 4.52 | 4.00 | 4.18 | 4.14 | 4.97 | 3.13 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,286,700K ÷ ($576,600K – $292,200K)
= 4.52
The working capital turnover of Tennant Company has fluctuated over the reviewed period. It increased from 3.13 in March 2020 to a peak of 4.97 in June 2020, indicating an efficient use of working capital to generate sales. Subsequently, the ratio slightly decreased to 4.14 in September 2020, followed by relatively stable performance around 4.18 to 4.61 over the next few quarters up to December 2021.
In the following periods, the working capital turnover showed some variability, with values ranging between 3.48 and 4.24. Notably, there was a slight decline in efficiency in the latest reporting period, with the ratio dropping to 4.04 in June 2024 from the peak of 4.61 in December 2021. This suggests that the company may have experienced challenges in managing its working capital effectively to support revenue generation during that quarter.
Overall, Tennant Company's working capital turnover has generally been within a relatively healthy range, indicating a moderate level of efficiency in utilizing its working capital to support sales activities. It would be important for the company to closely monitor and manage its working capital turnover to ensure continued operational efficiency and financial performance in the future.
Peer comparison
Dec 31, 2024