Interface Inc (TILE)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.49 | 0.59 | 0.58 | 0.63 | 0.61 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $408,641K ÷ ($408,641K + $425,947K)
= 0.49
Interface Inc.'s debt-to-capital ratio has shown a decreasing trend from 0.62 in 2019 to 0.49 in 2023. This indicates that the company has been relying less on debt financing relative to its total capital over the years. A lower debt-to-capital ratio suggests a healthier financial position as the company is less leveraged, which could be seen as a positive sign by creditors and investors. However, it is important to note that while the ratio has decreased, it still remains relatively high at 0.49 in 2023, meaning that almost half of the company's capital structure is composed of debt. Further analysis of the company's debt structure and financial health should be conducted to fully understand the implications of this ratio.
Peer comparison
Dec 31, 2023