Tennant Company (TNC)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 83,700 | 109,500 | 66,300 | 64,900 | 33,700 |
| Total assets | US$ in thousands | 1,190,100 | 1,113,400 | 1,085,100 | 1,061,700 | 1,082,600 |
| ROA | 7.03% | 9.83% | 6.11% | 6.11% | 3.11% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $83,700K ÷ $1,190,100K
= 7.03%
Tennant Company's return on assets (ROA) has shown an increasing trend from 3.11% as of December 31, 2020, to 7.03% as of December 31, 2024. The company's ROA improved consistently over the years, reaching a peak of 9.83% on December 31, 2023. This indicates that Tennant Company has been utilizing its assets more efficiently to generate profits. The significant increase in ROA demonstrates the company's ability to generate higher earnings relative to its asset base, reflecting positively on its operational performance and financial management. However, the slight decline in ROA from 2023 to 2024 suggests a potential slowdown in asset utilization efficiency or profitability growth that merits further investigation for sustainability and strategic planning.
Peer comparison
Dec 31, 2024