Tennant Company (TNC)
Interest coverage
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 114,200 | 131,800 | 134,800 | 138,500 | 136,900 | 128,700 | 116,500 | 96,400 | 75,100 | 58,100 | 60,300 | 58,100 | 80,600 | 76,400 | 71,800 | 74,700 | 53,100 | 63,800 | 67,200 | 52,200 |
| Interest expense (ttm) | US$ in thousands | 9,100 | 10,000 | 10,600 | 12,100 | 13,500 | 14,400 | 13,300 | 10,500 | 7,100 | 4,400 | 2,800 | 3,700 | 8,000 | 12,100 | 16,700 | 20,200 | 20,700 | 21,300 | 21,300 | 21,100 |
| Interest coverage | 12.55 | 13.18 | 12.72 | 11.45 | 10.14 | 8.94 | 8.76 | 9.18 | 10.58 | 13.20 | 21.54 | 15.70 | 10.08 | 6.31 | 4.30 | 3.70 | 2.57 | 3.00 | 3.15 | 2.47 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $114,200K ÷ $9,100K
= 12.55
Tennant Company's interest coverage ratio has shown fluctuations over the past few years. The interest coverage ratio is a measure of a company's ability to cover its interest expenses with its operating income.
From March 2020 to June 2020, there was an improvement in the interest coverage ratio from 2.47 to 3.15. This trend continued through September 2020, with the ratio further increasing to 3.00. However, by December 2020, the ratio dropped to 2.57.
Starting from March 2021, there was a significant improvement in the interest coverage ratio, which rose steadily to reach 10.08 by December 2021. This strong performance continued through March 2022, with an interest coverage ratio of 15.70, and June 2022, reaching 21.54.
The interest coverage ratio then experienced a decline, starting from September 2022, dropping to 13.20, and further decreasing to 10.58 by December 2022. The ratio remained relatively stable around the 10-12 range in the subsequent quarters, with a slight increase recorded by June 2024 to 12.72.
Overall, Tennant Company's interest coverage ratio has shown variability, with periods of both improvement and decline. It is essential for investors to monitor this ratio as it indicates the company's ability to meet its interest obligations from operating income to assess its financial health and stability.
Peer comparison
Dec 31, 2024