Interface Inc (TILE)
Net profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 86,946 | 44,517 | 19,560 | 55,234 | -71,929 |
| Revenue | US$ in thousands | 1,315,660 | 1,261,500 | 1,297,920 | 1,200,400 | 1,103,260 |
| Net profit margin | 6.61% | 3.53% | 1.51% | 4.60% | -6.52% |
December 31, 2024 calculation
Net profit margin = Net income ÷ Revenue
= $86,946K ÷ $1,315,660K
= 6.61%
Net profit margin is a key financial metric that reflects a company's profitability by measuring the percentage of revenue that translates into net income after all expenses have been deducted. Based on the data provided for Interface Inc, the net profit margin has shown variability over the years.
On December 31, 2020, the net profit margin was negative at -6.52%, indicating that the company incurred a loss relative to its revenue. However, there has been a significant improvement in profitability since then.
By December 31, 2021, Interface Inc's net profit margin had improved substantially to 4.60%, indicating that the company was able to generate a net profit equivalent to 4.60% of its total revenue.
In the following years, the net profit margin showed further fluctuations, with values of 1.51% on December 31, 2022, 3.53% on December 31, 2023, and 6.61% on December 31, 2024. These fluctuations suggest changes in the company's cost structure, pricing strategy, or overall financial performance.
It is essential for Interface Inc to analyze the factors contributing to these fluctuations to maintain and enhance its profitability in the future. A rising net profit margin generally indicates improved operational efficiency and effective cost management, which are critical for long-term success and sustainability in the competitive business environment.
Peer comparison
Dec 31, 2024