Interface Inc (TILE)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 832,710 | 820,429 | 860,186 | 767,665 | 692,688 |
| Inventory | US$ in thousands | 260,581 | 279,079 | 306,327 | 265,092 | 228,725 |
| Inventory turnover | 3.20 | 2.94 | 2.81 | 2.90 | 3.03 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $832,710K ÷ $260,581K
= 3.20
The inventory turnover of Interface Inc has shown a slight decrease over the past five years, from 3.03 in December 31, 2020, to 2.90 in December 31, 2021, and further to 2.81 in December 31, 2022. However, there was a slight improvement in the inventory turnover ratio to 2.94 in December 31, 2023, and then a more significant increase to 3.20 by December 31, 2024.
A decreasing inventory turnover ratio could indicate that Interface Inc is holding onto its inventory for a longer period, which may tie up working capital and indicate potential inefficiencies in managing inventory levels. On the other hand, an increasing inventory turnover ratio suggests that the company is selling its inventory more quickly, which could be a positive sign of effective inventory management and better liquidity.
Overall, Interface Inc's inventory turnover ratio has fluctuated over the years, and it would be important to further assess the company's inventory management practices and industry trends to gain a deeper understanding of its operational efficiency.
Peer comparison
Dec 31, 2024