Tennant Company (TNC)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 116,900 | 77,200 | 123,100 | 140,400 | 74,100 |
| Short-term investments | US$ in thousands | — | 800 | — | — | — |
| Total current liabilities | US$ in thousands | 273,700 | 261,600 | 290,300 | 254,300 | 274,900 |
| Cash ratio | 0.43 | 0.30 | 0.42 | 0.55 | 0.27 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($116,900K
+ $—K)
÷ $273,700K
= 0.43
The cash ratio of Tennant Co. has fluctuated over the past five years, ranging from 0.39 in 2019 to 0.65 in 2020. The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents.
In 2023, the cash ratio stands at 0.53, indicating that Tennant Co. has $0.53 of cash and cash equivalents for every dollar of current liabilities. This suggests that the company has slightly improved its liquidity position compared to the previous year.
It is worth noting that while a higher cash ratio generally indicates better liquidity and financial health, it is also important to consider industry norms and the company's specific operating requirements when evaluating this metric. Overall, Tennant Co.'s cash ratio appears to be relatively stable, but further analysis of other liquidity ratios and financial metrics would provide a more complete picture of the company's financial position.
Peer comparison
Dec 31, 2023