Interface Inc (TILE)

Short-term

Turnover ratios

Interface Inc's activity ratios provide insight into the efficiency of the company's operations.

1. Inventory Turnover:
- The inventory turnover ratio indicates how effectively a company is managing its inventory.
- Interface Inc's inventory turnover has fluctuated over the past five years, ranging from 2.81 to 3.20.
- A higher turnover ratio suggests that the company is selling goods quickly, while a lower ratio may indicate excess inventory or slow sales.

2. Receivables Turnover:
- There is missing data for receivables turnover, which indicates that specific information on how quickly the company is collecting on its receivables is not available.
- Receivables turnover measures how efficiently a company is collecting on credit sales.

3. Payables Turnover:
- Similar to receivables turnover, there is no data available for payables turnover, so it is unknown how quickly Interface Inc is paying its suppliers.
- Payables turnover ratio assesses how efficiently a company is managing its trade payables.

4. Working Capital Turnover:
- The working capital turnover ratio shows how efficiently a company is utilizing its working capital to generate sales.
- Interface Inc's working capital turnover has varied between 3.27 and 3.87 over the past five years.
- A higher turnover indicates that the company is generating more revenue with less working capital, which is a positive sign of efficiency.

Overall, analyzing these activity ratios can provide valuable insights into Interface Inc's operational efficiency, inventory management, and the utilization of working capital.

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Average number of days

Interface Inc's Days of Inventory on Hand (DOH) has been gradually increasing over the years, from 120.52 days as of December 31, 2020, to 114.22 days as of December 31, 2024. This indicates that the company is taking longer to sell its inventory, which may tie up capital and increase storage costs.

The Days of Sales Outstanding (DSO) and Number of Days of Payables data are not available for analysis, suggesting that there is no information provided on how quickly the company collects its accounts receivable or pays its suppliers.

Overall, Interface Inc's activity ratios suggest that the management of inventory levels may need attention to improve efficiency and liquidity. Further information on accounts receivable and payables turnover would provide a more comprehensive picture of the company's working capital management.

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Long-term

Interface Inc's long-term activity ratios show a positive trend over the years. The Fixed Asset Turnover ratio, which measures how efficiently the company is using its fixed assets to generate revenue, has been increasing steadily from 2.41 in 2020 to 3.42 in 2022. This indicates that Interface Inc has been able to generate more sales relative to its investment in fixed assets.

Similarly, the Total Asset Turnover ratio, which reflects the company's ability to generate sales from its total assets, has also improved consistently. The ratio has increased from 0.84 in 2020 to 1.12 in 2024. This suggests that Interface Inc has been effective in utilizing its total assets to produce revenue, thereby improving its overall efficiency in asset utilization.

Overall, the increasing trend in both Fixed Asset Turnover and Total Asset Turnover ratios signifies that Interface Inc has been successful in optimizing its asset utilization and generating revenue efficiently over the years.