Tennant Company (TNC)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 577,000 | 470,800 | 433,800 | 404,800 | 359,900 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $577,000K)
= 0.00
The debt-to-capital ratio of Tennant Co. has shown a declining trend over the past five years, decreasing from 0.48 in 2019 to 0.26 in 2023. This indicates that the company has reduced its reliance on debt financing in relation to its total capital structure.
A lower debt-to-capital ratio suggests that the company has a stronger financial position with a higher proportion of equity compared to debt. This can be seen as a positive sign of financial health as it signifies lower financial risk and potential for greater financial stability.
Overall, Tennant Co.'s decreasing debt-to-capital ratio over the years indicates a prudent approach towards managing its capital structure and debt levels, which may enhance its financial flexibility and resilience in the face of economic challenges.
Peer comparison
Dec 31, 2023