Tennant Company (TNC)
Cash ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 116,900 | 97,000 | 95,800 | 91,400 | 77,200 | 59,200 | 73,800 | 110,400 | 123,100 | 140,600 | 135,100 | 175,200 | 140,400 | 124,700 | 99,300 | 192,100 | 74,100 | 71,700 | 71,700 | 46,900 |
| Short-term investments | US$ in thousands | — | 1,500 | 1,400 | 700 | 800 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 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 | 274,900 | 269,900 | 259,700 | 267,200 |
| Cash ratio | 0.43 | 0.40 | 0.38 | 0.36 | 0.30 | 0.24 | 0.28 | 0.41 | 0.42 | 0.51 | 0.48 | 0.63 | 0.55 | 0.51 | 0.39 | 0.85 | 0.27 | 0.27 | 0.28 | 0.18 |
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 measures a company's ability to cover its short-term obligations with its cash and cash equivalents. Tennant Co.'s cash ratio has shown a generally increasing trend over the past year, starting at 0.45 in Q4 2022 and reaching its peak at 0.53 in Q1 2022 before fluctuating slightly.
A cash ratio of 0.53 in Q4 2023 indicates that Tennant Co. had $0.53 in cash and cash equivalents for every dollar of current liabilities. This suggests that the company is in a strong position to meet its short-term financial obligations using its liquid assets.
Overall, Tennant Co.'s cash ratio has been consistently above 1, which is considered a healthy level indicating a company's ability to cover its short-term liabilities comfortably. This trend suggests that Tennant Co. has been effectively managing its cash resources to support its ongoing operations and meet its financial commitments.
Peer comparison
Dec 31, 2023