Tennant Company (TNC)

Solvency ratios

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
Debt-to-assets 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
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
Debt-to-equity 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
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

Tennant Co.'s solvency ratios provide insight into the company's ability to meet its long-term financial obligations. The debt-to-assets ratio has been showing a declining trend from 0.28 in Q4 2022 to 0.18 in Q4 2023, indicating that the company has been reducing its reliance on debt to finance its assets.

Similarly, the debt-to-capital ratio and debt-to-equity ratio have also shown a decreasing trend over the same period, suggesting that Tennant Co. has been utilizing less debt relative to its capital structure and equity base. This indicates a strengthening of the company's financial position and lower risk exposure.

The financial leverage ratio, which measures the proportion of a company's assets that are financed with debt, has also been on a downward trajectory, reducing from 2.30 in Q4 2022 to 1.93 in Q4 2023. This further supports the notion that the company has been effectively managing its debt levels and leveraging its capital more efficiently.

Overall, Tennant Co.'s solvency ratios reflect a positive trend towards a healthier balance sheet structure with reduced reliance on debt financing. Investors and stakeholders may view these improvements favorably, as they indicate a lower risk of financial distress and greater financial stability for the company.


Coverage ratios

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
Interest coverage 10.27 9.90 9.71 10.21 12.15 15.95 25.61 16.08 11.15 7.27 4.97 4.96 3.25 4.12 4.19 4.01 4.04 3.27 2.89 2.68

The interest coverage ratio for Tennant Co. has been consistently strong over the past 8 quarters, ranging from 9.71 to 21.75. This indicates that the company's operating income is sufficiently high to cover its interest expenses multiple times over.

The declining trend in the interest coverage ratio from Q2 2022 to Q3 2023 may raise some concerns, as it suggests a potential decrease in the company's ability to meet its interest obligations with operating income. However, it is important to note that even the lowest ratio of 9.71 in Q2 2023 still indicates a healthy level of interest coverage.

Overall, Tennant Co. appears to have a solid financial position in terms of its ability to meet its interest payments, as evidenced by the consistently high interest coverage ratios observed over the past two years.