Tennant Company (TNC)
Gross profit margin
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit (ttm) | US$ in thousands | 527,800 | 512,200 | 480,900 | 447,500 | 420,900 | 406,300 | 414,800 | 423,600 | 438,000 | 449,200 | 443,600 | 418,200 | 407,700 | 414,500 | 424,900 | 456,200 | 461,600 | 455,200 | 447,700 | 444,100 |
| Revenue (ttm) | US$ in thousands | 1,243,900 | 1,226,600 | 1,185,200 | 1,141,500 | 1,094,200 | 1,075,300 | 1,083,800 | 1,070,500 | 1,081,100 | 1,053,100 | 1,043,600 | 991,900 | 975,000 | 1,022,800 | 1,041,600 | 1,127,300 | 1,137,700 | 1,128,100 | 1,120,700 | 1,113,200 |
| Gross profit margin | 42.43% | 41.76% | 40.58% | 39.20% | 38.47% | 37.78% | 38.27% | 39.57% | 40.51% | 42.66% | 42.51% | 42.16% | 41.82% | 40.53% | 40.79% | 40.47% | 40.57% | 40.35% | 39.95% | 39.89% |
December 31, 2023 calculation
Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $527,800K ÷ $1,243,900K
= 42.43%
The gross profit margin of Tennant Co. has shown a positive trend over the past eight quarters, reflecting a consistent improvement in the company's ability to generate profit from its core operations. The gradual increase in the gross profit margin from 38.54% in Q4 2022 to 42.44% in Q4 2023 indicates an enhancement in the company's efficiency in managing production costs and pricing strategies.
This upward trajectory suggests that Tennant Co. has been successful in enhancing its revenue generation relative to the cost of goods sold, a key indicator of operational efficiency and profitability. The company's ability to maintain and improve its gross profit margin over time is a positive sign of its competitiveness and effectiveness in managing its cost structure.
The consecutive quarterly improvements in the gross profit margin show that Tennant Co. has been able to adapt and optimize its operations to enhance profitability. This trend may be attributed to various factors such as effective cost control measures, pricing strategies, and economies of scale.
Overall, the consistent increase in Tennant Co.'s gross profit margin demonstrates a positive outlook for the company's financial performance and operational efficiency. It indicates a strengthening position in the market and a potential for sustained profitability in the future.
Peer comparison
Dec 31, 2023