Tennant Company (TNC)
Debt-to-capital ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 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 from Q4 2022 to Q4 2023, decreasing from 0.39 to 0.26. This indicates that the company's reliance on debt to finance its operations and growth has decreased over this period.
A lower debt-to-capital ratio generally suggests a lower risk level for the company as it implies a smaller proportion of debt in its capital structure compared to equity. It also reflects a better ability to meet financial obligations using internal resources.
Tennant Co.'s decreasing debt-to-capital ratio could be a positive signal of effective debt management, improved financial health, and potentially increased investor confidence. However, it is important to keep monitoring this ratio in the future to ensure the company maintains a sustainable capital structure.
Peer comparison
Dec 31, 2023