Interface Inc (TILE)

Liquidity ratios

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 Apr 5, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Current ratio 2.72 2.79 2.99 2.76 2.80 2.54 2.51 2.37 2.19 2.28 2.38 2.38 2.56 2.10 2.29 2.32 2.08 2.22 2.49 2.43
Quick ratio 1.28 1.25 1.33 0.46 1.27 0.33 0.37 0.31 1.03 0.40 0.45 0.49 0.53 0.42 0.39 0.32 0.31 0.33 0.36 0.29
Cash ratio 0.51 0.57 0.48 0.46 0.44 0.33 0.37 0.31 0.37 0.40 0.45 0.49 0.53 0.42 0.39 0.32 0.31 0.33 0.36 0.29

Interface Inc.'s liquidity ratios have shown fluctuating trends over the last eight quarters. The current ratio, which measures the company's ability to cover short-term liabilities with current assets, has displayed a generally positive trajectory, peaking in Q2 2023 at 2.99 and then slightly decreasing to 2.72 in Q4 2023. This indicates that Interface Inc. has maintained strong liquidity levels overall, with the ability to more than cover its current liabilities with its current assets.

The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has also been relatively stable, hovering around 1.41 to 1.51 over the same period. This suggests that Interface Inc. has a reasonable ability to meet its short-term obligations with its most liquid assets, such as cash and accounts receivable.

Looking at the cash ratio, which indicates the proportion of current liabilities that can be covered by cash and cash equivalents alone, Interface Inc. has shown some variability in its cash holdings. While the ratio has generally been above 0.50, indicating a healthy cash position, it dipped to 0.48 in Q3 2022 before gradually increasing to 0.73 in Q3 2023. This suggests improved liquidity in terms of cash reserves over the recent quarters.

Overall, Interface Inc. appears to have maintained a strong liquidity position, as indicated by its current ratio consistently above 2, a relatively stable quick ratio, and an improving cash ratio. However, a detailed analysis of the company's cash management practices and current liabilities structure may provide further insights into its liquidity management.

Additional liquidity measure

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 Apr 5, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Cash conversion cycle days 121.44 140.87 146.48 101.28 147.39 72.42 70.28 75.39 112.88 64.09 83.86 123.66 160.00 517.80 167.65 99.55 71.80 76.02 80.77 126.59

Interface Inc.'s cash conversion cycle, which measures the time it takes for a company to convert its resource inputs into cash flow from sales, has shown some fluctuations over the past eight quarters. The company's cash conversion cycle ranged from a low of 133.22 days in Q3 2023 to a high of 150.00 days in Q1 2022.

Overall, Interface Inc.'s cash conversion cycle has been relatively stable, with an average cycle of approximately 142 days during the period analyzed. A lower cash conversion cycle indicates that the company is able to efficiently convert its investments in inventory and accounts receivable into cash, which is a positive sign.

However, the company should continue to monitor and manage its cash conversion cycle effectively to ensure optimal working capital management. By reducing the number of days it takes to convert its resources into cash, Interface Inc. can improve its liquidity, financial health, and overall operational efficiency.