Tennant Company (TNC)
Quick 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 | 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 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 247,600 | 241,900 | 263,500 | 254,300 | 251,500 | 219,300 | 215,700 | 199,500 | 211,400 | 198,400 | 207,600 | 190,100 | 195,400 | 198,000 | 180,300 | 203,800 | 216,500 | 204,900 | 222,100 | 204,200 |
| 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 |
| Quick ratio | 1.33 | 1.39 | 1.40 | 1.35 | 1.26 | 1.14 | 1.09 | 1.16 | 1.15 | 1.23 | 1.21 | 1.32 | 1.32 | 1.32 | 1.11 | 1.76 | 1.06 | 1.02 | 1.13 | 0.94 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($116,900K
+ $—K
+ $247,600K)
÷ $273,700K
= 1.33
The quick ratio measures the ability of Tennant Co. to meet its short-term obligations with its most liquid assets. A quick ratio above 1 indicates that the company has sufficient liquid assets to cover its current liabilities.
Analyzing Tennant Co.'s quick ratio over the past eight quarters, we observe a generally stable and healthy trend. The quick ratio has consistently remained above 1, ranging from 1.26 to 1.52. This indicates that Tennant Co. has consistently maintained a sufficient level of liquidity to cover its short-term liabilities.
Notably, the quick ratio has shown gradual improvement over time, with a slight increase observed from Q1 2022 to Q3 2023. This indicates that Tennant Co. has been effectively managing its liquidity position and improving its ability to meet short-term obligations.
Overall, the trend of Tennant Co.'s quick ratio suggests that the company is in a favorable liquidity position, ensuring it can meet its short-term financial obligations without relying heavily on the sale of inventory.
Peer comparison
Dec 31, 2023