Tennant Company (TNC)

Current ratio

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Total current assets US$ in thousands 569,100 575,300 526,800 493,600 481,000
Total current liabilities US$ in thousands 273,700 261,600 290,300 254,300 274,900
Current ratio 2.08 2.20 1.81 1.94 1.75

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $569,100K ÷ $273,700K
= 2.08

The current ratio of Tennant Co. has shown a fluctuating trend over the past five years. In 2023, the current ratio stands at 2.08, a slight decrease from the previous year's ratio of 2.20. Despite this decrease, the company's current assets still exceed its current liabilities by a healthy margin.

Looking at the historical data, the current ratio has been generally improving from 2019 to 2022, indicating the company's ability to meet short-term obligations has been strengthening. However, the decrease in 2023 may be a cause for further investigation into the company's liquidity position.

A current ratio above 1 indicates that Tennant Co. has more current assets than current liabilities, suggesting good liquidity and ability to cover short-term obligations. The current ratios for the past five years have consistently been above 1, indicating that the company has maintained a sound liquidity position overall.

It is important to further assess the composition of current assets and liabilities to understand the factors influencing the current ratio and to determine the company's overall financial health in terms of liquidity management.


Peer comparison

Dec 31, 2023