Interface Inc (TILE)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,315,660 | 1,261,500 | 1,297,920 | 1,200,400 | 1,103,260 |
| Total current assets | US$ in thousands | 564,297 | 583,858 | 617,037 | 572,340 | 495,394 |
| Total current liabilities | US$ in thousands | 216,717 | 214,721 | 220,470 | 261,812 | 193,300 |
| Working capital turnover | 3.79 | 3.42 | 3.27 | 3.87 | 3.65 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,315,660K ÷ ($564,297K – $216,717K)
= 3.79
Interface Inc's working capital turnover has shown fluctuations over the past five years. The ratio increased from 3.65 in December 31, 2020, to 3.87 in December 31, 2021, indicating that the company was able to generate 3.87 times its working capital in sales revenue during the year. However, there was a slight decline in the ratio to 3.27 in December 31, 2022, which may suggest a decrease in efficiency in utilizing working capital.
Subsequently, the ratio improved to 3.42 in December 31, 2023, indicating that the company managed to enhance its working capital turnover. The ratio further increased to 3.79 in December 31, 2024, signaling an even better utilization of working capital to generate sales.
Overall, the trend in Interface Inc's working capital turnover reflects varying levels of efficiency in converting working capital into sales revenue. It is important for the company to closely monitor and manage its working capital to ensure optimal usage and maintain a healthy balance between liquidity and operational efficiency.
Peer comparison
Dec 31, 2024