Interface Inc (TILE)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 44,517 | 19,560 | 55,234 | -71,929 | 79,200 |
| Total stockholders’ equity | US$ in thousands | 425,947 | 361,537 | 363,398 | 326,538 | 368,202 |
| ROE | 10.45% | 5.41% | 15.20% | -22.03% | 21.51% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $44,517K ÷ $425,947K
= 10.45%
Interface Inc.'s return on equity (ROE) has exhibited significant fluctuation over the past five years. In 2023, the ROE stood at 10.45%, representing an improvement compared to the prior year's 5.41%. Despite this increase, the ROE remains below the levels seen in 2022 and 2019, where it was 15.20% and 21.51%, respectively.
The sharp decline in ROE to -22.03% in 2021 indicates a period of financial distress or inefficiency within the company, which led to a negative return for shareholders. The subsequent recovery in 2022 and 2023 suggests that Interface Inc. has taken steps to address the underlying issues and improve its profitability.
Overall, Interface Inc.'s ROE performance indicates a mixed track record in generating returns for shareholders, with the company experiencing both positive and negative trends in recent years. It is important for investors and stakeholders to closely monitor the company's financial health and management strategies to assess its future profitability and sustainability.
Peer comparison
Dec 31, 2023