Tennant Company (TNC)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 | 1.92 | 1.88 | 1.87 | 1.87 | 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 |
Tennant Company's solvency ratios indicate a strong financial position with consistently low levels of debt relative to assets, capital, and equity. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all remained at 0.00 over the analyzed periods, suggesting that the company is not heavily reliant on borrowed funds to finance its operations.
Furthermore, the Financial leverage ratio has shown a declining trend, starting at 3.22 on March 31, 2020, and decreasing to 1.92 by December 31, 2024. This indicates that Tennant Company has been effectively reducing its reliance on debt to fund its operations and has been strengthening its equity position over time.
Overall, the solvency ratios of Tennant Company point towards a stable and financially sound company with a conservative approach to debt management, which bodes well for its long-term financial health and stability.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
Based on the provided data, Tennant Company's interest coverage ratio has shown a fluctuating trend over the observed periods. The interest coverage ratio measures the company's ability to meet its interest obligations, with a higher ratio indicating better coverage.
Tennant Company's interest coverage ratio improved from 2.47 in March 2020 to a peak of 21.54 in June 2022, indicating a significant strengthening of the company's ability to cover its interest expenses. However, the ratio declined from that peak to 8.76 in June 2023, before stabilizing around the 10-13 range in the subsequent periods.
Overall, Tennant Company's interest coverage ratio has generally remained above 1, which suggests that the company has been able to cover its interest expenses with operating income. The increasing trend in the earlier periods followed by a stabilization indicates a reasonable level of financial stability in terms of meeting interest obligations. Further monitoring of the interest coverage ratio can provide insights into the company's financial health and ability to service its debt obligations.