Interface Inc (TILE)
Return on assets (ROA)
| 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 |
| Total assets | US$ in thousands | 1,170,820 | 1,230,100 | 1,266,500 | 1,330,060 | 1,306,010 |
| ROA | 7.43% | 3.62% | 1.54% | 4.15% | -5.51% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $86,946K ÷ $1,170,820K
= 7.43%
Interface Inc's return on assets (ROA) has shown a fluctuating trend over the past five years. The ROA was negative at -5.51% as of December 31, 2020, indicating that the company was not efficiently utilizing its assets to generate profit. However, there was a significant improvement in ROA to 4.15% by December 31, 2021, suggesting a better management of assets leading to increased profitability.
Subsequently, the ROA decreased to 1.54% by December 31, 2022, indicating a slight drop in asset efficiency. However, there was an improvement in ROA to 3.62% by December 31, 2023, reflecting an enhanced profitability relative to the assets employed.
Notably, the most recent data of December 31, 2024, shows a significant increase in ROA to 7.43%, indicating that Interface Inc has been able to significantly improve its profitability in relation to its assets, possibly through more effective asset management strategies or higher revenue generation.
Overall, Interface Inc's ROA has shown fluctuations over the years, but the latest figure of 7.43% shows a positive trend in asset utilization efficiency and profitability. It will be crucial for the company to sustain or improve upon this performance to ensure long-term financial health and success.
Peer comparison
Dec 31, 2024