Interface Inc (TILE)
Receivables 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 |
| Receivables | US$ in thousands | 163,386 | 182,807 | 171,676 | 139,869 | 177,482 |
| Receivables turnover | 7.50 | 6.91 | 6.82 | 7.68 | 7.42 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $1,225,740K ÷ $163,386K
= 7.50
Interface Inc.'s receivables turnover has exhibited some fluctuation over the past five years. The turnover ratio indicates how efficiently the company is managing its accounts receivable by converting them into cash. A higher turnover ratio is generally preferable as it signifies that Interface Inc. is collecting receivables more quickly.
In 2023, the receivables turnover ratio increased to 7.72 from 7.10 in 2022, reflecting an improvement in the efficiency of collecting receivables. This suggests that Interface Inc. has been able to collect its outstanding receivables at a faster rate in 2023 compared to the previous year.
Although the ratio dipped slightly in 2022 to 7.10 from 6.99 in 2021, it rebounded in 2021 to 7.89, signaling improved efficiency in collecting receivables. The trend in the receivables turnover ratio over these years indicates that Interface Inc. has been effective in managing its accounts receivable and converting them into cash efficiently.
Overall, Interface Inc.'s receivables turnover ratios have remained relatively stable and at a healthy level over the past five years, indicating effective credit management and collection practices within the company. The increasing trend in recent years suggests that Interface Inc. has been successful in optimizing its accounts receivable processes.
Peer comparison
Dec 31, 2023