Tennant Company (TNC)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 42.43% | 38.45% | 40.51% | 41.83% | 40.59% |
| Operating profit margin | 11.14% | 7.97% | 8.67% | 6.53% | 6.31% |
| Pretax margin | 9.95% | 7.26% | 6.85% | 4.22% | 4.74% |
| Net profit margin | 8.80% | 6.06% | 6.00% | 3.46% | 4.03% |
Tennant Co.'s profitability ratios have shown improvement over the past five years. The gross profit margin has gradually increased from 40.59% in 2019 to 42.44% in 2023, indicating the company's ability to effectively manage its cost of goods sold.
The operating profit margin also demonstrates a positive trend, rising from 6.31% in 2019 to 11.15% in 2023. This suggests that Tennant Co. has been successful in controlling its operating expenses and generating operating income efficiently.
Furthermore, the pretax margin has shown consistent growth, increasing from 4.75% in 2019 to 9.95% in 2023. This indicates that the company has been able to enhance its profitability before accounting for taxes through improved revenue generation and cost management.
The net profit margin has experienced significant improvement, escalating from 4.03% in 2019 to 8.81% in 2023. This reveals that Tennant Co. has been successful in translating its revenue into net profit, resulting in higher earnings for the shareholders.
Overall, Tennant Co.'s profitability ratios demonstrate a positive trajectory, reflecting the company's improved efficiency in managing costs, generating revenue, and enhancing profitability over the past five years.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 12.45% | 8.04% | 8.83% | 5.88% | 6.76% |
| Return on assets (ROA) | 9.83% | 6.11% | 6.11% | 3.11% | 4.31% |
| Return on total capital | 24.02% | 18.52% | 18.76% | 14.45% | 19.92% |
| Return on equity (ROE) | 18.98% | 14.08% | 14.96% | 8.33% | 12.73% |
Tennant Co. has shown a consistent improvement in its profitability ratios over the past five years. The operating return on assets (Operating ROA) has steadily increased from 6.76% in 2019 to 12.45% in 2023. This indicates that the company has been able to generate more operating income relative to its total assets in recent years.
Similarly, the return on assets (ROA) has also shown a positive trend, increasing from 4.31% in 2019 to 9.83% in 2023. This suggests that Tennant Co. has become more efficient in generating profits from its assets over time.
The return on total capital has also demonstrated an upward trajectory, climbing from 10.28% in 2019 to 17.82% in 2023. This indicates that the company has been able to generate higher returns on its total invested capital in the business.
Moreover, the return on equity (ROE) has shown a consistent improvement, increasing from 12.73% in 2019 to 18.98% in 2023. This suggests that the company has been able to create more value for its shareholders over the years.
Overall, Tennant Co. has exhibited strong profitability performance, with a steady improvement in its profitability ratios, indicating effective management of both assets and capital to generate increasing returns for the company and its shareholders.