Tennant Company (TNC)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 31,000 | 569,100 | 575,300 | 526,800 | 493,600 |
| Total current liabilities | US$ in thousands | 292,200 | 273,700 | 261,600 | 290,300 | 254,300 |
| Current ratio | 0.11 | 2.08 | 2.20 | 1.81 | 1.94 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $31,000K ÷ $292,200K
= 0.11
The current ratio for Tennant Company has shown fluctuations over the past five years. At the end of December 31, 2020, the current ratio was 1.94, indicating the company had $1.94 in current assets to cover each dollar of current liabilities. This ratio decreased to 1.81 by December 31, 2021, suggesting a slight weakening in the company's short-term liquidity position.
However, there was a notable improvement in the current ratio to 2.20 by December 31, 2022, signaling that Tennant Company had increased its ability to meet its short-term obligations more comfortably. The ratio slightly declined to 2.08 by the end of December 31, 2023, but still reflected a solid liquidity position.
Surprisingly, by December 31, 2024, the current ratio decreased significantly to 0.11, indicating a concerning situation where the company's current liabilities far exceeded its current assets. Such a low current ratio could raise questions about Tennant Company's ability to meet its short-term financial obligations effectively and may warrant further investigation into the company's liquidity management practices.
Peer comparison
Dec 31, 2024