Tennant Company (TNC)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 114,300 | 138,600 | 87,200 | 93,700 | 63,700 |
| Total assets | US$ in thousands | 1,190,100 | 1,113,400 | 1,085,100 | 1,061,700 | 1,082,600 |
| Operating ROA | 9.60% | 12.45% | 8.04% | 8.83% | 5.88% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $114,300K ÷ $1,190,100K
= 9.60%
The operating return on assets (Operating ROA) of Tennant Company has been improving over the period from December 31, 2020, to December 31, 2024. The trend shows a consistent increase from 5.88% in 2020 to 9.60% in 2024, with variations in between. The highest Operating ROA was recorded at 12.45% on December 31, 2023, indicating that the company generated $12.45 in operating income for every $100 of assets invested during that period.
This positive trend in Operating ROA suggests that Tennant Company has been effectively utilizing its assets to generate operating profit. A higher Operating ROA reflects operational efficiency and profitability. It indicates that the company is efficiently managing its assets to generate revenue from its core operations. Investors and stakeholders may view this trend positively as it shows the company's ability to generate value from its asset base. However, it would be important to monitor future performance to ensure the sustainability of this improvement in Operating ROA.
Peer comparison
Dec 31, 2024