Tennant Company (TNC)

Gross profit margin

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Gross profit US$ in thousands 550,000 527,800 420,900 438,000 407,800
Revenue US$ in thousands 1,286,700 1,243,600 1,092,200 1,090,800 1,001,000
Gross profit margin 42.75% 42.44% 38.54% 40.15% 40.74%

December 31, 2024 calculation

Gross profit margin = Gross profit ÷ Revenue
= $550,000K ÷ $1,286,700K
= 42.75%

The gross profit margin of Tennant Company has displayed fluctuating trends over the past five years. Initially, as of December 31, 2020, the gross profit margin stood at 40.74%, indicating that the company generated 40.74 cents of gross profit for every dollar of revenue earned.

Subsequently, by December 31, 2021, there was a slight decline in the gross profit margin to 40.15%. This decline continued in the following year, as of December 31, 2022, when the margin decreased further to 38.54%.

However, the trend reversed in the subsequent years, with the gross profit margin showing improvement. As of December 31, 2023, the margin increased significantly to 42.44%, reflecting a positive development in the company's ability to generate gross profit relative to its revenue.

Finally, as of December 31, 2024, the gross profit margin continued its upward trajectory, reaching 42.75%. This upward trend indicates that Tennant Company has been effectively managing its cost of goods sold and improving its operational efficiency to increase the margin between its revenue and the direct costs associated with generating that revenue.

Overall, the analysis of Tennant Company's gross profit margin demonstrates both fluctuations and positive improvements over the five-year period, highlighting the company's ability to adapt to changing market conditions and enhance its profitability.


Peer comparison

Dec 31, 2024