Interface Inc (TILE)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 104,522 | 75,398 | 104,797 | -39,287 | 130,903 |
| Total assets | US$ in thousands | 1,230,100 | 1,266,500 | 1,330,060 | 1,306,010 | 1,423,050 |
| Operating ROA | 8.50% | 5.95% | 7.88% | -3.01% | 9.20% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $104,522K ÷ $1,230,100K
= 8.50%
Interface Inc.'s operating return on assets (operating ROA) has fluctuated over the past five years. In 2023, the operating ROA was 8.29%, a slight decrease from the previous year's 8.97%. This indicates that the company generated 8.29 cents of operating income for every dollar of assets it possesses. Despite the decrease, the company's performance remains relatively stable compared to 2021, where the operating ROA was 8.15%.
In 2022, Interface Inc. experienced an improvement in its operating ROA, reaching 8.97%. This suggests that the company was able to increase its operating income relative to its assets compared to the previous year.
However, in 2021, the operating ROA was 5.92%, indicating a decline in the company's ability to generate operating income from its assets. This could suggest potential inefficiencies in the company's operations or a decrease in profitability during that period.
The highest operating ROA in the last five years was observed in 2019 at 10.11%, indicating that Interface Inc. was able to generate the highest level of operating income relative to its assets in that year.
Overall, Interface Inc.'s operating return on assets demonstrates some variability over the years, suggesting fluctuations in the company's operational efficiency and profitability. The company should continue monitoring and managing its assets effectively to improve its operating ROA in the future.
Peer comparison
Dec 31, 2023