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TNC (Tennant Co) Sloan Ratio % : 6.08% (As of Dec. 2024)


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What is Tennant Co Sloan Ratio %?

Richard Sloan from the University of Michigan was first to document what is referred to as the "accrual anomaly". His 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones.

Tennant Co's Sloan Ratio for the quarter that ended in Dec. 2024 was 6.08%.

As of Dec. 2024, Tennant Co has a Sloan Ratio of 6.08%, indicating the company is in the safe zone and there is no funny business with accruals.


Tennant Co Sloan Ratio % Historical Data

The historical data trend for Tennant Co's Sloan Ratio % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Tennant Co Sloan Ratio % Chart

Tennant Co Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Sloan Ratio %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -6.48 -0.58 10.68 -5.00 6.08

Tennant Co Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
Sloan Ratio % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -5.00 2.64 3.99 5.69 6.08

Competitive Comparison of Tennant Co's Sloan Ratio %

For the Specialty Industrial Machinery subindustry, Tennant Co's Sloan Ratio %, along with its competitors' market caps and Sloan Ratio % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Tennant Co's Sloan Ratio % Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Tennant Co's Sloan Ratio % distribution charts can be found below:

* The bar in red indicates where Tennant Co's Sloan Ratio % falls into.


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Tennant Co Sloan Ratio % Calculation

Earnings contain a lot of non cash earnings which is called accruals. The Sloan ratio is a way to identify firms with low non-cash or accrual-derived earnings relative to their cash flow.

Tennant Co's Sloan Ratio for the fiscal year that ended in Dec. 2024 is calculated as

Sloan Ratio=(Net Income (A: Dec. 2024 )-Cash Flow from Operations (A: Dec. 2024 )
-Cash Flow from Investing (A: Dec. 2024 ))/Total Assets (A: Dec. 2024 )
=(83.7-89.7
--78.4)/1190.1
=6.08%

Tennant Co's Sloan Ratio for the quarter that ended in Dec. 2024 is calculated as

Sloan Ratio=(Net Income (TTM)-Cash Flow from Operations (TTM))
-Cash Flow from Investing (TTM))/Total Assets (Q: Dec. 2024 )
=(83.7-89.7
--78.4)/1190.1
=6.08%

Tennant Co's Net Income for the trailing twelve months (TTM) ended in Dec. 2024 was 28.4 (Mar. 2024 ) + 27.9 (Jun. 2024 ) + 20.8 (Sep. 2024 ) + 6.6 (Dec. 2024 ) = $84 Mil.
Tennant Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2024 was 2.9 (Mar. 2024 ) + 18.6 (Jun. 2024 ) + 30.7 (Sep. 2024 ) + 37.5 (Dec. 2024 ) = $90 Mil.
Tennant Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2024 was -60.6 (Mar. 2024 ) + -4.3 (Jun. 2024 ) + -4.2 (Sep. 2024 ) + -9.3 (Dec. 2024 ) = $-78 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Tennant Co  (NYSE:TNC) Sloan Ratio % Explanation

A former University of Michigan researcher, Richard Sloan's 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones. In fact, for the 40-year period between 1962 and 2001, buying the lowest accrual companies and shorting the highest accrual companies resulted in an average annual compounded return of 18%, more than double the S&P 500's 7.4% annual return over the same period.

According to How to Beat the Market with the Sloan Ratio:

If the Sloan Ratio is between -10% and 10%, the company is in the safe zone and there is no funny business with accruals.

If the Sloan Ratio is less than between -25% and -10% on the negative side, and between 10% and 25% on the positive side, this is a warning stage of accrual build up.

If the Sloan Ratio is less than -25% or greater than 25%, and this ratio is consistent over several quarters or even years, be careful. Earnings are highly likely to be made up of accruals.

As of Dec. 2024, Tennant Co has a Sloan Ratio of 6.08%, indicating the company is in the safe zone and there is no funny business with accruals.


Tennant Co Sloan Ratio % Related Terms

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Tennant Co Business Description

Traded in Other Exchanges
Address
10400 Clean Street, Eden Prairie, MN, USA, 55344
Tennant Co is a manufacturer of floor cleaning equipment, wood flooring, and wood products. It operates in four geographic business units including North America; Latin America; Europe, Middle East, Africa; and Asia Pacific. The company offers products and solutions consisting of mechanized cleaning equipment, detergent-free, and other sustainable cleaning technologies, aftermarket parts and consumables, equipment maintenance and repair service, specialty surface coatings, and business solutions such as financing, rental and leasing programs, and machine-to-machine asset management solutions.
Executives
Barb Balinski officer: SVP, Innovation & Technology 10400 CLEAN STREET, EDEN PRAIRIE MN 55344
Azita Arvani director 1522 LOMA DRIVE, HERMOSA BEACH CA 90254
Richard H. Zay officer: Senior VP, The Americas 701 N. LILAC DRIVE, MINNEAPOLIS MN 55422
Kristin A. Stokes officer: Interim General Counsel 701 N. LILAC DRIVE, MINNEAPOLIS MN 55422
Carol S Eicher director ROHM AND HAAS COMPANY, 100 INDEPENDENCE MALL WEST, PHILADELPHIA PA 19106
Donal L Mulligan director ONE GENERAL MILLS BLVD, MINNEAPOLIS MN 55426
David Windley director 701 N. LILAC DRIVE, MINNEAPOLIS MN 55422
Steven Alan Sonnenberg director EMERSON PROCESS MANAGEMENT - ROSEMOUNT, 8200 MARKET BOULEVARD, CHANHASSEN MN 55317
David W. Huml officer: Sr. VP, Global Marketing 701 N. LILAC DRIVE, MINNEAPOLIS MN 55422
Carol E. Mcknight officer: Senior VP and CAO 701 N. LILAC DRIVE, MINNEAPOLIS MN 55422
Andrew P. Hider director 10400 CLEAN STREET, EDEN PRARIE MN 55344
Chris Killingstad director, officer: President and CEO C/O TENNANT COMPANY, 701 N. LILAC DRIVE, MINNEAPOLIS MN 55422
Fay West officer: Senior VP, CFO 1011 WARRENVILLE ROAD, SUITE 600, LISLE IL 60532
Timothy R. Morse director C/O YAHOO! INC., 701 FIRST AVENUE, SUNNYVALE CA 94089
David S Wichmann director BOSTON SCIENTIFIC CORPORATION, 300 BOSTON SCIENTIFIC WAY, MARLBOROUGH MA 01752