Tennant Company (TNC)
Operating return on assets (Operating ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 138,600 | 142,500 | 129,200 | 108,500 | 87,200 | 71,900 | 74,400 | 72,000 | 93,700 | 88,600 | 83,100 | 85,600 | 63,700 | 75,300 | 78,400 | 75,400 | 71,800 | 65,400 | 59,300 | 58,400 |
| Total assets | US$ in thousands | 1,113,400 | 1,059,300 | 1,108,300 | 1,100,700 | 1,085,100 | 1,005,100 | 1,025,200 | 1,050,200 | 1,061,700 | 1,067,100 | 1,081,400 | 1,080,800 | 1,082,600 | 1,063,500 | 1,028,200 | 1,150,200 | 1,062,900 | 1,045,100 | 1,070,800 | 1,040,700 |
| Operating ROA | 12.45% | 13.45% | 11.66% | 9.86% | 8.04% | 7.15% | 7.26% | 6.86% | 8.83% | 8.30% | 7.68% | 7.92% | 5.88% | 7.08% | 7.62% | 6.56% | 6.76% | 6.26% | 5.54% | 5.61% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $138,600K ÷ $1,113,400K
= 12.45%
Operating return on assets (ROA) is a key financial ratio that measures a company's operating profitability relative to its total assets. A higher operating ROA indicates that the company is generating more operating income for each dollar of assets it has.
Tennant Co.'s operating ROA has shown a positive trend over the past eight quarters, increasing from 5.92% in Q1 2022 to 12.45% in Q4 2023. This improvement suggests that the company has become more efficient in utilizing its assets to generate operating income.
The consistent growth in operating ROA indicates that Tennant Co. has been able to increase its profitability while effectively managing its asset base. This could be attributed to factors such as cost control measures, revenue growth, and operational efficiency.
Analyzing the quarterly fluctuations in operating ROA can provide further insights into Tennant Co.'s performance and help identify any seasonal or one-time factors affecting profitability. Overall, a rising trend in operating ROA reflects positively on Tennant Co.'s ability to generate returns from its operating activities relative to its asset base.
Peer comparison
Dec 31, 2023