Tennant Company (TNC)
Profitability ratios
Return on sales
| 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 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% |
| Operating profit margin | 11.14% | 11.62% | 10.90% | 9.51% | 7.97% | 6.69% | 6.86% | 6.73% | 8.67% | 8.41% | 7.96% | 8.63% | 6.53% | 7.36% | 7.53% | 6.69% | 6.31% | 5.80% | 5.29% | 5.25% |
| Pretax margin | 9.95% | 10.31% | 9.82% | 8.48% | 7.27% | 6.18% | 6.36% | 5.21% | 6.85% | 6.31% | 5.47% | 6.84% | 4.22% | 5.00% | 5.26% | 4.75% | 4.73% | 4.27% | 3.70% | 3.41% |
| Net profit margin | 8.80% | 8.34% | 8.02% | 7.03% | 6.06% | 4.69% | 5.19% | 4.62% | 6.00% | 5.65% | 4.76% | 5.46% | 3.46% | 4.12% | 4.32% | 4.04% | 4.02% | 3.77% | 3.36% | 3.19% |
Tennant Co. has shown improvements in its profitability ratios over the past quarters. The gross profit margin has been increasing steadily, indicating the company's ability to efficiently manage its production costs and generate higher profits from sales. The operating profit margin has also been on an upward trend, showing that Tennant Co. has been effectively controlling its operating expenses to increase profitability.
Moreover, the pretax margin has been gradually increasing, suggesting that the company has been successful in managing its overall expenses before accounting for taxes. The net profit margin, which reflects the company's bottom-line profitability after all expenses are deducted, has also shown growth over the quarters.
Overall, Tennant Co. has demonstrated consistent improvement in its profitability ratios, which is a positive indicator of the company's financial performance and efficiency in generating profits.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 9.83% | 9.66% | 8.57% | 7.30% | 6.11% | 5.01% | 5.49% | 4.71% | 6.11% | 5.58% | 4.60% | 5.01% | 3.11% | 3.96% | 4.38% | 3.96% | 4.30% | 4.07% | 3.51% | 3.41% |
| Return on total capital | 24.02% | 26.15% | 24.82% | 21.79% | 18.33% | 16.51% | 16.57% | 13.65% | 18.76% | 17.45% | 16.39% | 20.21% | 14.67% | 17.14% | 19.37% | 19.96% | 19.87% | 20.51% | 19.03% | 19.06% |
| Return on equity (ROE) | 18.98% | 18.77% | 18.25% | 16.32% | 14.08% | 11.85% | 13.01% | 11.35% | 14.96% | 13.47% | 11.39% | 12.90% | 8.33% | 10.69% | 12.11% | 12.73% | 12.70% | 12.56% | 11.27% | 11.16% |
Tennant Co.'s profitability ratios indicate generally positive trends over the past eight quarters.
1. Operating Return on Assets (Operating ROA): This ratio measures the company's operating profit generated per dollar of assets. Tennant Co.'s Operating ROA has shown a consistent improvement from 7.70% in Q4 2022 to 12.45% in Q4 2023. This indicates that the company is becoming more efficient in generating operating profits from its assets.
2. Return on Assets (ROA): ROA reflects the company's overall profitability by measuring the net income generated per dollar of assets. Tennant Co.'s ROA has also improved gradually from 6.11% in Q4 2022 to 9.83% in Q4 2023. This suggests that the company has been able to generate more profit from its asset base.
3. Return on Total Capital: This ratio assesses the company's ability to generate profits from both equity and debt investments. Tennant Co.'s Return on Total Capital has consistently increased from 10.83% in Q4 2022 to 17.82% in Q4 2023, indicating efficient utilization of both equity and debt capital.
4. Return on Equity (ROE): ROE measures the return the company generates on shareholder equity. Tennant Co.'s ROE has shown steady growth from 11.35% in Q1 2022 to 18.98% in Q4 2023, reflecting the company's ability to generate higher profits for its shareholders.
Overall, Tennant Co.'s profitability ratios demonstrate a positive trend, with improvements in operating efficiency, overall profitability, capital utilization, and shareholder returns over the past eight quarters. These trends suggest effective management of assets and capital, leading to enhanced profitability for the company.