Tennant Company (TNC)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 42,100 | 577,000 | 470,800 | 433,800 | 404,800 |
| ROE | 198.81% | 18.98% | 14.08% | 14.96% | 8.33% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $83,700K ÷ $42,100K
= 198.81%
Tennant Company's return on equity (ROE) has experienced fluctuations over the past five years, ranging from 8.33% in December 2020 to a significant spike of 198.81% by December 2024. This sharp increase in ROE in 2024 warrants further investigation to understand the reasons behind such a substantial improvement. Generally, an increasing ROE indicates that the company is generating more profit from its shareholders' equity, which is a positive sign of efficient capital utilization. It is essential to assess the factors driving this improvement while also monitoring the sustainability of such a high ROE figure in the future.
Peer comparison
Dec 31, 2024