Tennant Company (TNC)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,190,100 | 1,113,400 | 1,085,100 | 1,061,700 | 1,082,600 |
| Total stockholders’ equity | US$ in thousands | 42,100 | 577,000 | 470,800 | 433,800 | 404,800 |
| Financial leverage ratio | 28.27 | 1.93 | 2.30 | 2.45 | 2.67 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,190,100K ÷ $42,100K
= 28.27
The financial leverage ratio for Tennant Company has shown a gradual decline from 2.67 in December 31, 2020, to 1.93 in December 31, 2023. This downward trend indicates that the company has been reducing its dependence on debt to finance its operations and investments. However, there is a significant spike in the ratio to 28.27 as of December 31, 2024. This sudden increase could be a result of a substantial debt issuance or a decline in equity during that period. Overall, Tennant Company's financial leverage has fluctuated over the years, and it is essential for stakeholders to closely monitor these changes to assess the company's risk exposure and capital structure.
Peer comparison
Dec 31, 2024