Interface Inc (TILE)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,230,100 | 1,266,500 | 1,330,060 | 1,306,010 | 1,423,050 |
| Total stockholders’ equity | US$ in thousands | 425,947 | 361,537 | 363,398 | 326,538 | 368,202 |
| Financial leverage ratio | 2.89 | 3.50 | 3.66 | 4.00 | 3.86 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,230,100K ÷ $425,947K
= 2.89
Interface Inc.'s financial leverage ratio has shown a declining trend over the past five years, indicating a decreasing reliance on debt to finance its operations. The ratio decreased from 3.86 in 2019 to 2.89 in 2023, reflecting a substantial reduction in the company's financial leverage. This suggests that Interface Inc. has been able to decrease its debt levels relative to its equity, potentially reducing its financial risk and improving its overall financial stability. However, it is important to note that a lower financial leverage ratio may also indicate reduced potential for leveraging opportunities that could enhance returns. Overall, the decreasing trend in financial leverage ratio for Interface Inc. signals a positive shift towards a more conservative capital structure.
Peer comparison
Dec 31, 2023