Interface Inc (TILE)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,170,820 | 1,230,100 | 1,266,500 | 1,330,060 | 1,306,010 |
| Total stockholders’ equity | US$ in thousands | 489,148 | 425,947 | 361,537 | 363,398 | 326,538 |
| Financial leverage ratio | 2.39 | 2.89 | 3.50 | 3.66 | 4.00 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,170,820K ÷ $489,148K
= 2.39
Interface Inc's financial leverage ratio has been steadily decreasing over the years, indicating a reduction in the company's reliance on debt to finance its operations. The ratio declined from 4.00 as of December 31, 2020, to 2.39 as of December 31, 2024.
A decreasing financial leverage ratio is generally considered positive as it suggests that the company is becoming less risky in terms of its debt obligations. This trend may indicate that Interface Inc is managing its debt levels more effectively or generating sufficient internal funds to support its operations without relying heavily on borrowed funds.
A lower financial leverage ratio can also imply improved financial stability and flexibility for the company, as lower debt levels reduce the risk of financial distress or default. Overall, the decreasing trend in Interface Inc's financial leverage ratio reflects a strengthening financial position and may be viewed positively by investors and creditors.
Peer comparison
Dec 31, 2024