Tennant Company (TNC)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 42.75% | 42.44% | 38.54% | 40.15% | 40.74% |
| Operating profit margin | 8.88% | 11.15% | 7.98% | 8.59% | 6.36% |
| Pretax margin | 8.14% | 9.95% | 7.28% | 6.79% | 4.11% |
| Net profit margin | 6.51% | 8.81% | 6.07% | 5.95% | 3.37% |
Tennant Company's profitability ratios have shown some fluctuations over the past five years.
- Gross profit margin decreased from 40.74% in 2020 to 38.54% in 2022, but then improved to 42.75% in 2024. This indicates the company's ability to control production costs and generate profits from its core business operations.
- Operating profit margin experienced variability, rising from 6.36% in 2020 to 11.15% in 2023, before declining slightly to 8.88% in 2024. This metric reflects the company's efficiency in managing operating expenses and generating profits from its operations.
- Pretax margin followed an upward trend, increasing from 4.11% in 2020 to 9.95% in 2023, then decreasing to 8.14% in 2024. This ratio highlights the company's ability to generate profits before accounting for taxes.
- Net profit margin rose from 3.37% in 2020 to 8.81% in 2023, then decreased to 6.51% in 2024. This ratio indicates the company's bottom-line profitability after all expenses, including taxes, have been accounted for.
Overall, Tennant Company has demonstrated solid profitability performance over the years, with varying degrees of success in different profit margin categories. Investors may consider the company's ability to maintain or improve these ratios as an indication of its financial health and efficiency in generating profits.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 9.60% | 12.45% | 8.04% | 8.83% | 5.88% |
| Return on assets (ROA) | 7.03% | 9.83% | 6.11% | 6.11% | 3.11% |
| Return on total capital | 270.55% | 23.80% | 18.61% | 19.34% | 15.74% |
| Return on equity (ROE) | 198.81% | 18.98% | 14.08% | 14.96% | 8.33% |
Tennant Company's profitability ratios show a positive trend over the years.
- The Operating return on assets (Operating ROA) improved from 5.88% in December 2020 to 12.45% in December 2023 before slightly decreasing to 9.60% in December 2024. This indicates the company's ability to generate operating profits from its assets.
- Return on assets (ROA) also demonstrated a notable increase from 3.11% in December 2020 to 9.83% in December 2023, signaling improved efficiency in asset utilization. However, it decreased to 7.03% in December 2024.
- The Return on total capital significantly surged from 15.74% in December 2020 to an astonishing 270.55% in December 2024. This substantial rise suggests that the company efficiently utilized its total capital to generate returns during this period.
- Return on equity (ROE) registered remarkable growth from 8.33% in December 2020 to an exceptional 198.81% in December 2024. This indicates that the company's shareholders experienced significant returns on their investments.
Overall, Tennant Company's profitability ratios show improvement and strong performance, with particularly notable increases in Return on total capital and Return on equity over the years.