Tennant Company (TNC)
Debt-to-equity 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-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $577,000K
= 0.00
The debt-to-equity ratio of Tennant Co. has shown a decreasing trend over the past five years, indicating a positive sign for the company's financial health.
In 2019, the ratio was at its highest at 0.94, which implies that the company had a higher level of debt in relation to its equity. However, over the subsequent years, Tennant Co. has successfully reduced its reliance on debt financing in favor of equity, as evidenced by the decreasing ratios in 2020 (0.76), 2021 (0.62), and 2022 (0.64).
As of December 31, 2023, the debt-to-equity ratio further decreased to 0.35, marking a significant improvement in the company's capital structure. A lower debt-to-equity ratio suggests that Tennant Co. has a lesser proportion of debt in relation to its equity, which can indicate lower financial risk and enhanced financial stability.
Overall, the trend of decreasing debt-to-equity ratios for Tennant Co. underscores a positive trajectory towards a stronger financial position and a more sustainable capital structure.
Peer comparison
Dec 31, 2023