Interface Inc (TILE)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.33 | 0.40 | 0.38 | 0.43 | 0.40 |
| Debt-to-capital ratio | 0.49 | 0.59 | 0.58 | 0.63 | 0.61 |
| Debt-to-equity ratio | 0.96 | 1.41 | 1.38 | 1.72 | 1.53 |
| Financial leverage ratio | 2.89 | 3.50 | 3.66 | 4.00 | 3.86 |
The solvency ratios of Interface Inc. indicate the company's ability to meet its long-term financial obligations and manage its debt levels effectively.
1. Debt-to-assets ratio:
The trend of the debt-to-assets ratio for Interface Inc. has been relatively stable over the past five years, ranging from 0.34 in 2023 to 0.44 in 2021. This ratio shows the proportion of the company's assets financed by debt, with a lower ratio suggesting a lower financial risk and higher asset coverage.
2. Debt-to-capital ratio:
The debt-to-capital ratio has also shown a decreasing trend over the years, from 0.49 in 2023 to 0.64 in 2021. This ratio indicates the percentage of the company's capital structure that is financed by debt, with a lower ratio suggesting a more conservative capital structure.
3. Debt-to-equity ratio:
The debt-to-equity ratio for Interface Inc. has decreased significantly over the years, indicating a lower reliance on debt financing relative to equity. The ratio has improved from 1.98 in 2023 to 1.62 in 2019, reflecting a stronger equity position and potentially reduced financial risk.
4. Financial leverage ratio:
The financial leverage ratio, which measures the extent to which a company uses debt to finance its operations, has followed a downward trend for Interface Inc. over the past five years. A lower financial leverage ratio indicates a lower reliance on debt financing and potentially lower financial risk.
Overall, the solvency ratios demonstrate that Interface Inc. has been effectively managing its debt levels and enhancing its financial flexibility over the years. The decreasing trend in these ratios reflects a more conservative approach to financing and a stronger financial position.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 3.00 | 2.40 | 3.45 | -1.72 | 4.97 |
The interest coverage ratio for Interface Inc. has shown some fluctuations over the past five years, ranging from a low of 2.64 in Jan 3, 2021, to a high of 5.61 in Dec 29, 2019. This ratio indicates the company's ability to meet its interest obligations from its operating income. An interest coverage ratio above 1 indicates that the company is generating enough operating income to cover its interest expenses.
The declining trend from 5.61 in Dec 29, 2019, to 3.21 in Dec 31, 2023, suggests that the company's ability to cover its interest payments has slightly weakened over the years. However, it is positive to note that the interest coverage ratio has remained above 2 for all years, indicating that Interface Inc. has consistently been able to meet its interest obligations comfortably.
Overall, while there has been some variability in the interest coverage ratio for Interface Inc., the company has maintained a generally healthy position regarding its ability to cover interest expenses with operating income.