Tennant Company (TNC)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 99,600 | 117,100 | 77,400 | 123,600 | 141,000 |
| Short-term investments | US$ in thousands | -68,600 | 800 | 800 | — | — |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 292,200 | 273,700 | 261,600 | 290,300 | 254,300 |
| Quick ratio | 0.11 | 0.43 | 0.30 | 0.43 | 0.55 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($99,600K
+ $-68,600K
+ $—K)
÷ $292,200K
= 0.11
The quick ratio of Tennant Company has shown a decreasing trend over the five-year period from 2020 to 2024. The ratio decreased from 0.55 in 2020 to 0.11 in 2024. This indicates a decline in the company's ability to meet its short-term obligations using its most liquid assets. A quick ratio below 1 suggests that the company may have difficulty in meeting its current liabilities without relying on the sale of inventory. The significant drop in the quick ratio from 2020 to 2024 raises concerns about the company's short-term liquidity position and may warrant further investigation into its financial management and working capital efficiency.
Peer comparison
Dec 31, 2024