Interface Inc (TILE)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.39 | 2.89 | 3.50 | 3.66 | 4.00 |
Interface Inc's solvency ratios indicate a consistently strong financial position in terms of debt management and leverage over the years. The debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio remained at 0.00 for all years from 2020 to 2024, suggesting that the company has no debt obligations relative to its total assets, capital, and equity. This signifies a low risk of financial distress due to debt.
Furthermore, the financial leverage ratio experienced a decreasing trend from 4.00 in 2020 to 2.39 in 2024. A decreasing financial leverage ratio indicates that the company is relying less on debt to finance its operations and investments compared to its equity. This decreasing trend reflects a strengthening solvency position and improved financial stability for Interface Inc over the years.
Overall, the company's solvency ratios demonstrate prudent financial management practices, low levels of debt, and a healthy capital structure, which contribute to a solid foundation for long-term financial sustainability and resilience.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 0.00 | 2.97 | 2.31 | 3.28 | -1.96 |
Interface Inc's interest coverage ratio has fluctuated over the years based on the data provided.
In December 31, 2020, the interest coverage ratio was negative at -1.96, indicating that the company's operating income was insufficient to cover its interest expenses, raising concerns about the company's ability to meet its debt obligations.
By December 31, 2021, the interest coverage ratio improved to 3.28, suggesting that the company's operating income was more than sufficient to cover its interest expenses. This improvement is a positive sign as it indicates that the company's financial health may have strengthened.
In December 31, 2022, the interest coverage ratio decreased to 2.31, but still remained above 1, which is typically considered the minimum acceptable level. However, the slight decline may signal a potential decrease in the company's ability to cover interest payments.
By December 31, 2023, the interest coverage ratio rose to 2.97, indicating a partial recovery from the previous year and a better ability to meet its interest obligations.
Lastly, in December 31, 2024, the interest coverage ratio became 0.00, suggesting that the company's operating income was unable to cover its interest expenses. This could be a cause for concern as it indicates a significant strain on the company's financial resources.
Overall, the fluctuating trend in Interface Inc's interest coverage ratio over the years highlights the importance of monitoring the company's ability to meet its interest obligations and manage its debt effectively.