Interface Inc (TILE)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jul 5, 2020 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 114.22 | 125.71 | 127.27 | 135.19 | 124.16 | 124.45 | 121.35 | 129.88 | 129.98 | 137.28 | 138.91 | 147.25 | 126.04 | 128.41 | 134.71 | 170.83 | 159.22 | 194.06 | 207.96 | 145.59 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 51.17 | — |
| Cash conversion cycle | days | 114.22 | 125.71 | 127.27 | 135.19 | 124.16 | 124.45 | 121.35 | 129.88 | 129.98 | 137.28 | 138.91 | 147.25 | 126.04 | 128.41 | 134.71 | 170.83 | 159.22 | 194.06 | 156.79 | 145.59 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 114.22 + — – —
= 114.22
The cash conversion cycle of Interface Inc, which represents the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales, has shown fluctuations over the period under review.
Starting at 145.59 days on June 30, 2020, the company saw an increase in its cash conversion cycle, peaking at 194.06 days on September 30, 2020. This extended cycle may indicate inefficiencies in managing inventory, receivables, and payables.
However, Interface Inc managed to improve its cash conversion cycle, reaching a low of 121.35 days on June 30, 2023. This signifies the company's ability to streamline its operations and collect cash more efficiently.
The trend continued positively, with the cash conversion cycle staying below 130 days in subsequent periods up to December 31, 2024, with the cycle reaching its lowest point of 114.22 days. This improvement suggests better inventory management, faster collection of receivables, or extended payment terms with suppliers.
Overall, Interface Inc has made notable progress in optimizing its cash conversion cycle, indicating enhanced working capital management and potentially improved financial performance and liquidity.
Peer comparison
Dec 31, 2024