Interface Inc (TILE)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 95,441 | 71,846 | 102,314 | -50,176 | 127,472 |
| Long-term debt | US$ in thousands | 408,641 | 510,003 | 503,056 | 561,251 | 565,178 |
| Total stockholders’ equity | US$ in thousands | 425,947 | 361,537 | 363,398 | 326,538 | 368,202 |
| Return on total capital | 11.44% | 8.24% | 11.81% | -5.65% | 13.66% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $95,441K ÷ ($408,641K + $425,947K)
= 11.44%
Interface Inc.'s return on total capital has been relatively stable over the past five years, ranging from 8.56% to 14.92%. The return on total capital measures the company's ability to generate profits from the total capital invested in the business.
In 2023, the return on total capital was 12.10%, showing a slight decrease compared to the previous year. This could indicate that the company's profitability relative to its total capital investment has slightly declined.
Although the return on total capital fluctuated over the years, it remained above 8.56%, indicating that Interface Inc. has been able to generate positive returns on its total capital. However, there may be potential room for improvement to increase the efficiency of capital utilization and enhance overall profitability.
Peer comparison
Dec 31, 2023