Tennant Company (TNC)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 109,500 | 66,300 | 64,900 | 33,700 | 45,800 |
| Total assets | US$ in thousands | 1,113,400 | 1,085,100 | 1,061,700 | 1,082,600 | 1,062,900 |
| ROA | 9.83% | 6.11% | 6.11% | 3.11% | 4.31% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $109,500K ÷ $1,113,400K
= 9.83%
Tennant Co.'s return on assets (ROA) has shown an upward trend over the past five years. The ROA increased from 4.31% in 2019 to 9.83% in 2023, indicating the company's improved ability to generate profits relative to its total assets. This is a positive sign as higher ROA values reflect a more efficient utilization of assets to generate profits.
The consistent improvement in ROA suggests that Tennant Co. has been effectively managing its assets to generate returns for its shareholders. It indicates that the company has been able to generate more income for each dollar of assets employed, which is a favorable indicator of financial performance and operational efficiency.
Overall, the increasing trend in ROA for Tennant Co. over the past five years showcases the company's ability to grow profitability in relation to its asset base, reflecting positively on its financial health and management effectiveness.
Peer comparison
Dec 31, 2023