Interface Inc (TILE)
Return on total capital
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jul 5, 2020 | Apr 5, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 95,441 | 45,243 | 48,878 | 52,573 | 71,846 | 121,965 | 117,937 | 113,413 | 102,314 | 88,260 | 77,331 | 60,978 | -50,210 | -42,972 | -13,272 | 17,062 | 127,472 | 103,923 | 75,477 | 63,331 |
| Long-term debt | US$ in thousands | 408,641 | 435,899 | 465,348 | 490,901 | 510,003 | 507,094 | 530,716 | 506,803 | 503,056 | 509,912 | 541,395 | 547,395 | 561,251 | 548,827 | 589,130 | 596,423 | 565,178 | 594,581 | 641,106 | 610,895 |
| Total stockholders’ equity | US$ in thousands | 425,947 | 387,564 | 384,908 | 367,029 | 361,537 | 321,423 | 347,377 | 366,880 | 363,398 | 336,777 | 335,586 | 314,815 | 326,538 | 287,020 | 258,196 | 238,655 | 368,202 | 357,378 | 352,113 | 349,659 |
| Return on total capital | 11.44% | 5.49% | 5.75% | 6.13% | 8.24% | 14.72% | 13.43% | 12.98% | 11.81% | 10.42% | 8.82% | 7.07% | -5.66% | -5.14% | -1.57% | 2.04% | 13.66% | 10.92% | 7.60% | 6.59% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $95,441K ÷ ($408,641K + $425,947K)
= 11.44%
Interface Inc.'s return on total capital has shown a decreasing trend over the past eight quarters. In Q4 2023, the return on total capital was 12.10%, down from 14.89% in Q3 2022. This declining trend indicates that the company may be experiencing challenges in generating profits from its total invested capital. While the return on total capital was relatively stable in the range of 10-15% throughout the observed period, the recent decrease could raise concerns about the company's operational efficiency and profitability. Further analysis of the company's financial performance and capital management strategies may be necessary to address the declining trend in return on total capital.
Peer comparison
Dec 31, 2023