Interface Inc (TILE)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,167,640 | 1,229,800 | 1,104,700 | 1,154,250 | 1,218,920 |
| Payables | US$ in thousands | 62,912 | 78,264 | 85,924 | 58,687 | 75,687 |
| Payables turnover | 18.56 | 15.71 | 12.86 | 19.67 | 16.10 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,167,640K ÷ $62,912K
= 18.56
The payables turnover ratio for Interface Inc. has shown a fluctuating trend over the past five years. In 2023, the payables turnover ratio increased to 13.04, reflecting an improvement in the company's ability to efficiently manage its accounts payable. This suggests that Interface Inc. is paying its suppliers more frequently during the year compared to previous years.
In contrast, the payables turnover ratio was lower in 2022 at 8.93 and 2019 at 10.80, indicating that the company took longer to pay its suppliers during those periods. The highest payables turnover ratio was observed in 2021 at 11.80, showing a strong performance in managing payables that year.
Overall, an increasing payables turnover ratio is generally favorable as it indicates that the company is paying its suppliers more quickly, potentially improving its relationship with them and optimizing cash flow. However, it is essential to consider other factors such as industry norms and company-specific circumstances when interpreting this ratio.
Peer comparison
Dec 31, 2023