Interface Inc (TILE)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,225,740 | 1,263,670 | 1,170,720 | 1,074,020 | 1,317,370 |
| Property, plant and equipment | US$ in thousands | 283,904 | 292,131 | 323,254 | 352,898 | 324,585 |
| Fixed asset turnover | 4.32 | 4.33 | 3.62 | 3.04 | 4.06 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,225,740K ÷ $283,904K
= 4.32
Interface Inc.'s fixed asset turnover ratio has exhibited fluctuations over the past five years, ranging from 3.07 to 4.36. The ratio measures the company's efficiency in generating sales revenue from its investment in fixed assets. A higher fixed asset turnover ratio indicates that the company is utilizing its fixed assets more effectively to generate sales.
In the most recent period, as of December 31, 2023, Interface Inc. achieved a fixed asset turnover ratio of 4.33, which suggests that the company generated $4.33 in sales revenue for every dollar invested in fixed assets. This represents a slight decrease from the previous year's ratio of 4.36.
The variability in Interface Inc.'s fixed asset turnover ratio over the past five years may indicate fluctuations in the company's operational efficiency and asset utilization. A consistently high ratio, such as the one observed in January 2023, could signify that the company is effectively managing and utilizing its fixed assets to drive sales growth.
Overall, Interface Inc. should closely monitor its fixed asset turnover ratio to ensure that it remains at optimal levels and continues to improve its operational efficiency and asset utilization over time.
Peer comparison
Dec 31, 2023