Tennant Company (TNC)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 91.06 | 101.68 | 96.83 | 93.39 | 89.69 | 94.77 | 103.38 | 107.33 | 112.33 | 108.53 | 102.45 | 101.67 | 89.80 | 90.54 | 85.52 | 84.82 | 79.04 | 80.58 | 89.07 | 84.57 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 91.06 | 101.68 | 96.83 | 93.39 | 89.69 | 94.77 | 103.38 | 107.33 | 112.33 | 108.53 | 102.45 | 101.67 | 89.80 | 90.54 | 85.52 | 84.82 | 79.04 | 80.58 | 89.07 | 84.57 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 91.06 + — – —
= 91.06
The cash conversion cycle of Tennant Company has shown some fluctuations over the reported periods. The company's cash conversion cycle, which represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales, was 84.57 days as of March 31, 2020. This metric increased to 112.33 days as of December 31, 2022, before declining to 91.06 days by the end of December 31, 2024.
Overall, Tennant Company's cash conversion cycle ranged from a low of 79.04 days to a high of 112.33 days over the reported periods. A lower cash conversion cycle generally indicates that the company is converting its investments into cash more efficiently.
It is important for the company to manage its cash conversion cycle effectively to ensure optimal cash flow management and liquidity. By monitoring and potentially improving this cycle, Tennant Company can enhance its working capital management and overall financial performance.
Peer comparison
Dec 31, 2024