Tennant Company (TNC)
Gross profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 527,800 | 420,900 | 438,000 | 407,800 | 461,700 |
| Revenue | US$ in thousands | 1,243,900 | 1,094,700 | 1,081,300 | 975,000 | 1,137,600 |
| Gross profit margin | 42.43% | 38.45% | 40.51% | 41.83% | 40.59% |
December 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $527,800K ÷ $1,243,900K
= 42.43%
The gross profit margin of Tennant Co. has exhibited fluctuations over the past five years. In 2023, the gross profit margin improved to 42.44%, representing an increase from the previous year's margin of 38.54%. This uptick indicates that the company was able to generate a higher percentage of revenue as gross profit in 2023 compared to 2022.
Looking further back, the gross profit margin in 2023 was higher than both 2021 and 2020, suggesting improved efficiency in managing production costs and pricing strategies. However, it is worth noting that the margin in 2023 was slightly lower than in 2019, highlighting a potential need for further analysis to understand the factors driving this trend.
Overall, an increasing gross profit margin is generally viewed positively as it indicates the company's ability to effectively control costs and generate profits from its core operations. Ongoing monitoring of this ratio and additional analysis of underlying factors contributing to changes in the margin will be beneficial for assessing Tennant Co.'s operational performance and financial health.
Peer comparison
Dec 31, 2023