Tennant Company (TNC)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 138,600 | 87,200 | 93,700 | 63,700 | 71,800 |
| Revenue | US$ in thousands | 1,243,900 | 1,094,700 | 1,081,300 | 975,000 | 1,137,600 |
| Operating profit margin | 11.14% | 7.97% | 8.67% | 6.53% | 6.31% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $138,600K ÷ $1,243,900K
= 11.14%
Tennant Co.'s operating profit margin has shown a favorable trend over the past five years. The company's operating profit margin has been steadily improving, reaching 11.15% at the end of December 2023, compared to 7.65% in 2022, 7.69% in 2021, 6.36% in 2020, and 6.31% in 2019.
This indicates that Tennant Co. has been able to effectively control its operating expenses relative to its revenue, resulting in a higher proportion of revenue being converted into operating profit. The increasing trend in the operating profit margin suggests that the company has been successful in enhancing operational efficiency and effectiveness in managing costs.
Overall, Tennant Co.'s improving operating profit margin reflects positively on the company's ability to generate profits from its core business operations, which is essential for sustainable growth and profitability.
Peer comparison
Dec 31, 2023