Tennant Company (TNC)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,113,400 | 1,059,300 | 1,108,300 | 1,100,700 | 1,085,100 | 1,005,100 | 1,025,200 | 1,050,200 | 1,061,700 | 1,067,100 | 1,081,400 | 1,080,800 | 1,082,600 | 1,063,500 | 1,028,200 | 1,150,200 | 1,062,900 | 1,045,100 | 1,070,800 | 1,040,700 |
| 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 |
| Financial leverage ratio | 1.93 | 1.94 | 2.13 | 2.24 | 2.30 | 2.36 | 2.37 | 2.41 | 2.45 | 2.42 | 2.48 | 2.57 | 2.67 | 2.70 | 2.77 | 3.22 | 2.95 | 3.09 | 3.21 | 3.27 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,113,400K ÷ $577,000K
= 1.93
The financial leverage ratio for Tennant Co. has been fluctuating over the past eight quarters. The trend indicates that the company's financial leverage has been gradually increasing, reaching its highest point of 2.41 in Q1 2022. This suggests that Tennant Co. relies more on debt financing compared to equity to fund its operations and growth.
A ratio above 1 indicates that the company has more debt than equity in its capital structure. The increasing trend in the financial leverage ratio could signify that Tennant Co. has been taking on more debt over time, potentially to fund investments or expansion projects. However, a high financial leverage ratio also suggests higher financial risk for the company, as it will have to meet interest payments and debt obligations even in challenging economic conditions.
It is essential for investors and stakeholders to closely monitor Tennant Co.'s financial leverage ratio to ensure that the company maintains a healthy balance between debt and equity to support its long-term financial stability and growth prospects.
Peer comparison
Dec 31, 2023