Interface Inc (TILE)
Working capital 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 |
| Total current assets | US$ in thousands | 583,858 | 617,037 | 572,340 | 495,394 | 548,135 |
| Total current liabilities | US$ in thousands | 214,721 | 220,470 | 261,812 | 193,300 | 263,275 |
| Working capital turnover | 3.32 | 3.19 | 3.77 | 3.56 | 4.62 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,225,740K ÷ ($583,858K – $214,721K)
= 3.32
Interface Inc.'s working capital turnover has shown some fluctuation over the past five years. The working capital turnover ratio indicates how efficiently the company is utilizing its working capital to generate sales revenue. A higher ratio suggests that the company is effectively managing its working capital to support its operations.
The working capital turnover ratio was 3.42 in 2023, which indicates that for every dollar of working capital invested, the company generated $3.42 in sales revenue. This was a slight increase compared to the previous year when the ratio was 3.27.
In 2022, the working capital turnover ratio was 3.87, demonstrating an improvement in efficiency in utilizing working capital compared to the two previous years. However, in 2021, the ratio decreased to 3.65, indicating a slight decline in efficiency compared to the prior year.
The most significant change was observed in 2019 when the working capital turnover ratio was 4.71, reflecting a higher level of efficiency in utilizing working capital to generate sales revenue.
Overall, Interface Inc. has shown some variability in its working capital turnover ratio, with improvements and declines witnessed over the years. It is important for the company to continue monitoring and optimizing its working capital management to ensure efficient operations and profitability.
Peer comparison
Dec 31, 2023