Interface Inc (TILE)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 134,406 | 104,522 | 109,991 | 104,797 | 66,456 |
| Total assets | US$ in thousands | 1,170,820 | 1,230,100 | 1,266,500 | 1,330,060 | 1,306,010 |
| Operating ROA | 11.48% | 8.50% | 8.68% | 7.88% | 5.09% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $134,406K ÷ $1,170,820K
= 11.48%
Interface Inc's operating return on assets (Operating ROA) has shown a positive trend over the past five years. Beginning at 5.09% on December 31, 2020, the Operating ROA increased steadily to 7.88% by December 31, 2021. This upward trajectory continued as the ratio further improved to 8.68% by December 31, 2022, and then slightly dipped to 8.50% by December 31, 2023. Notably, by December 31, 2024, Interface Inc achieved a significant increase in Operating ROA, reaching 11.48%.
The consistent improvement in the Operating ROA indicates the company's ability to generate more operating income relative to its total assets over time. This trend could be a result of effective operational management, cost control measures, increased efficiency, or improved asset utilization. The notable spike in the Operating ROA in 2024 suggests that Interface Inc made significant strides in boosting profitability and operational efficiency during that year.
Overall, the positive trend in Interface Inc's Operating ROA reflects the company's strong operational performance and efficiency in utilizing its assets to generate operating earnings. This metric is important for investors and stakeholders as it provides insights into the company's ability to effectively generate profits from its assets, ultimately contributing to its overall financial health.
Peer comparison
Dec 31, 2024