Tennant Company (TNC)
Return on equity (ROE)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 109,500 | 102,300 | 95,000 | 80,300 | 66,300 | 50,400 | 56,300 | 49,500 | 64,900 | 59,500 | 49,700 | 54,200 | 33,700 | 42,100 | 45,000 | 45,500 | 45,700 | 42,500 | 37,600 | 35,500 |
| Total stockholders’ equity | US$ in thousands | 577,000 | 545,000 | 520,600 | 491,900 | 470,800 | 425,200 | 432,700 | 436,000 | 433,800 | 441,800 | 436,200 | 420,100 | 404,800 | 393,900 | 371,700 | 357,300 | 359,900 | 338,300 | 333,700 | 318,000 |
| 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% |
December 31, 2023 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $109,500K ÷ $577,000K
= 18.98%
The return on equity (ROE) of Tennant Co. has been showing a positive trend over the past 8 quarters, increasing from 11.35% in Q1 2022 to 18.98% in Q4 2023. This indicates that the company has been effectively utilizing its shareholders' equity to generate profit.
The consistent improvement in ROE reflects positively on Tennant Co.'s financial performance and efficiency in generating returns for its shareholders. The upward trajectory suggests that the company is making effective use of its assets and managing its operations efficiently.
Overall, Tennant Co.'s increasing ROE demonstrates strong management and financial acumen, and indicates a positive outlook for the company's profitability and value creation for shareholders. It is important for the company to sustain this positive trend to continue enhancing shareholder value and maintaining investor confidence.
Peer comparison
Dec 31, 2023