Interface Inc (TILE)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 36.71% | 34.96% | 33.73% | 36.05% | 37.21% |
| Operating profit margin | 10.22% | 8.29% | 8.47% | 8.73% | 6.02% |
| Pretax margin | 8.63% | 5.05% | 3.23% | 6.05% | -7.20% |
| Net profit margin | 6.61% | 3.53% | 1.51% | 4.60% | -6.52% |
Interface Inc's gross profit margin has shown a slight decrease from 37.21% in December 31, 2020, to 36.05% in December 31, 2021, but then experienced a more significant decline to 33.73% in December 31, 2022, before recovering to 34.96% in December 31, 2023, and further improving to 36.71% in December 31, 2024.
The operating profit margin of Interface Inc increased steadily from 6.02% in December 31, 2020, to 10.22% in December 31, 2024. This indicates that the company has been more efficient in controlling its operating expenses and generating operating profits over this period.
Interface Inc's pretax margin fluctuated significantly during the period. It started with a negative margin of -7.20% in December 31, 2020, but improved to 8.63% by December 31, 2024. This indicates a substantial turnaround in the company's ability to generate profits from its core business operations before accounting for taxes.
The net profit margin of Interface Inc also showed improvement over the period, increasing from -6.52% in December 31, 2020, to 6.61% in December 31, 2024. This indicates that the company has managed to increase its bottom-line profitability by controlling costs and improving operational efficiency.
Overall, Interface Inc has demonstrated a positive trend in its profitability margins, with improvements in operating profit margin, pretax margin, and net profit margin over the period analyzed.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 11.48% | 8.50% | 8.68% | 7.88% | 5.09% |
| Return on assets (ROA) | 7.43% | 3.62% | 1.54% | 4.15% | -5.51% |
| Return on total capital | 0.00% | 22.18% | 19.10% | 26.82% | -17.60% |
| Return on equity (ROE) | 17.77% | 10.45% | 5.41% | 15.20% | -22.03% |
Interface Inc's profitability ratios show a positive trend over the years, indicating an improvement in performance.
1. Operating Return on Assets (Operating ROA): The company's Operating ROA has been increasing steadily from 5.09% in 2020 to 11.48% in 2024. This ratio indicates the company's operating profitability relative to its total assets, showing that Interface Inc is generating more operating income for each dollar of assets employed.
2. Return on Assets (ROA): Interface Inc's ROA turned positive in 2021 and continued to improve to 7.43% in 2024. This ratio measures the company's overall profitability by comparing its net income to its total assets. The upward trend suggests that the company is becoming more efficient in generating profits from its assets.
3. Return on Total Capital: The return on total capital for Interface Inc has shown fluctuation, reaching its highest at 26.82% in 2021 and decreasing to 0.00% in 2024. This ratio evaluates the company's ability to generate returns for both equity and debt holders. The drop in 2024 may indicate changes in the company's capital structure.
4. Return on Equity (ROE): Interface Inc's ROE has also shown improvement, rising from -22.03% in 2020 to 17.77% in 2024. ROE measures the company's profitability relative to its shareholders' equity, reflecting the efficiency of turning equity investments into profits. The increasing trend signifies that the company is effectively utilizing shareholder investments to generate returns.
Overall, Interface Inc's profitability ratios demonstrate a positive performance trajectory, with a focus on increasing efficiency and generating returns for both equity and debt holders. However, the fluctuation in some ratios signals the need for further analysis to understand the underlying factors impacting the company's profitability.