Tennant Company (TNC)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 91.06 | 89.69 | 112.33 | 89.80 | 78.57 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 91.06 | 89.69 | 112.33 | 89.80 | 78.57 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 91.06 + — – —
= 91.06
The cash conversion cycle for Tennant Company has shown fluctuations over the past five years. On December 31, 2020, the cash conversion cycle was at 78.57 days, indicating that the company took approximately 78.57 days to convert its investments in inventory and other resources into cash inflows.
By December 31, 2021, the cash conversion cycle increased to 89.80 days, suggesting that it took longer for Tennant Company to convert its resources into cash during that period. The trend continued in 2022, with the cash conversion cycle reaching 112.33 days, reflecting a significant increase in the time taken to generate cash flows from investments.
In 2023, there was a slight improvement in the cash conversion cycle, dropping to 89.69 days, but it remained higher than the 2020 levels. By December 31, 2024, the cash conversion cycle stood at 91.06 days, indicating a relatively stable position compared to the previous year.
Overall, the cash conversion cycle for Tennant Company has experienced fluctuations, with some years showing increases and others slight improvements. It is important for the company to actively manage its working capital and operational efficiency to optimize the cash conversion cycle and ensure timely and efficient conversion of resources into cash inflows.
Peer comparison
Dec 31, 2024