Interface Inc (TILE)
Debt-to-capital ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.49 | 0.53 | 0.55 | 0.57 | 0.59 | 0.61 | 0.60 | 0.58 | 0.58 | 0.60 | 0.62 | 0.63 | 0.63 | 0.66 | 0.70 | 0.71 | 0.61 | 0.62 | 0.65 | 0.64 |
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 been fluctuating over the past eight quarters, ranging from 0.49 to 0.62. A decreasing trend can be observed from Q4 2022 to Q3 2023, where the ratio decreased from 0.59 to 0.53. However, there was a slight increase in Q4 2023 compared to the previous quarter.
The company's debt-to-capital ratio indicates that debt makes up a significant portion of its capital structure. A ratio above 0.5 suggests that more than half of the company's capital is financed through debt. While a higher debt-to-capital ratio can signify that the company is utilizing debt to finance its operations and growth opportunities, it also implies higher financial risk due to increased leverage.
It is crucial for Interface Inc. to carefully manage its debt levels to ensure it remains sustainable and can meet its financial obligations. Monitoring the trend of the debt-to-capital ratio over time can provide insights into the company's financial health and its ability to handle debt efficiently.
Peer comparison
Dec 31, 2023