Tennant Company (TNC)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 99,600 | 117,100 | 77,400 | 123,600 | 141,000 |
| Short-term investments | US$ in thousands | -68,600 | 800 | 800 | — | — |
| Total current liabilities | US$ in thousands | 292,200 | 273,700 | 261,600 | 290,300 | 254,300 |
| Cash ratio | 0.11 | 0.43 | 0.30 | 0.43 | 0.55 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($99,600K
+ $-68,600K)
÷ $292,200K
= 0.11
The cash ratio of Tennant Company has exhibited a declining trend from 0.55 as of December 31, 2020, to 0.11 as of December 31, 2024. This indicates a decrease in the company's ability to cover its short-term liabilities with its available cash and cash equivalents over the specified period. A cash ratio below 1 suggests that the company may have difficulty meeting its immediate financial obligations solely through its cash holdings. It is important for Tennant Company to closely monitor and manage its liquidity position to ensure it remains capable of meeting its short-term obligations effectively.
Peer comparison
Dec 31, 2024