Tennant Company (TNC)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 1,113,400 | 1,085,100 | 1,061,700 | 1,082,600 | 1,062,900 |
| Operating ROA | 12.45% | 8.04% | 8.83% | 5.88% | 6.76% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $138,600K ÷ $1,113,400K
= 12.45%
Tennant Co.'s operating return on assets (operating ROA) has shown a positive trend over the past five years. From 2019 to 2023, operating ROA increased from 6.76% to 12.45%. This indicates that Tennant Co. has been able to generate more operating income from its assets over the years, reflecting improved operational efficiency.
The significant improvement in operating ROA suggests that Tennant Co. is utilizing its assets more effectively to generate operating profits. This could be attributed to factors such as better cost management, revenue growth, or operational improvements within the company.
The consistent increase in operating ROA demonstrates Tennant Co.'s ability to drive profitability through its core business operations. Investors and stakeholders may view this trend positively as it indicates that the company is making efficient use of its assets to generate earnings.
Overall, the analysis of Tennant Co.'s operating ROA indicates a favorable performance in terms of asset utilization and profitability over the five-year period.
Peer comparison
Dec 31, 2023