Interface Inc (TILE)

Liquidity ratios

	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
Current ratio	2.60	2.57	2.76	2.73	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	2.29
Quick ratio	0.46	0.49	0.44	0.43	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	0.39
Cash ratio	0.46	0.49	0.44	0.43	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	0.39

Interface Inc's current ratio has been quite stable over the past few years, ranging from 2.10 to 2.99. This indicates that the company has consistently maintained a healthy level of current assets relative to current liabilities, suggesting a strong ability to meet its short-term obligations.

On the other hand, the quick ratio, which excludes inventory from current assets, has shown more variability, fluctuating between 0.31 and 0.57. While the quick ratio is generally lower compared to the current ratio, it still indicates that Interface Inc has an adequate level of readily available assets to cover its short-term liabilities without relying heavily on inventory.

Additionally, the cash ratio, which only considers cash and cash equivalents, follows a similar trend to the quick ratio, reflecting Interface Inc's ability to cover its immediate liabilities using its cash reserves. The cash ratio has ranged from 0.31 to 0.57, showing that the company has maintained a solid level of liquid assets throughout the periods analyzed.

In summary, Interface Inc's liquidity ratios, including the current ratio, quick ratio, and cash ratio, suggest that the company has maintained a strong liquidity position, ensuring its ability to meet short-term obligations efficiently.

Additional liquidity measure

		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
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

Interface Inc's cash conversion cycle measures the time it takes for the company to convert its investments in inventory, accounts receivable, and accounts payable back into cash. A shorter cash conversion cycle indicates a more efficient management of working capital.

Looking at the data provided, Interface Inc's cash conversion cycle has shown some fluctuation over the periods. It ranged from a high of 194.06 days on September 30, 2020, to a low of 114.22 days on December 31, 2024. Generally, a downward trend in the cash conversion cycle is positive as it signifies that the company is managing its working capital effectively and is able to generate cash more quickly.

It's worth noting that a shorter cash conversion cycle can be attributed to streamlined operations, efficient inventory management, prompt collection of receivables, and extended payment terms with suppliers. Conversely, a longer cash conversion cycle may indicate potential issues with inventory management, slow collection of receivables, or shorter payment terms with suppliers.

Overall, Interface Inc's downward trend in the cash conversion cycle shows improvement in its working capital management efficiency, which could lead to better liquidity and financial performance. However, it is important for the company to continuously monitor and optimize its cash conversion cycle to ensure sustainable financial health.