Interface Inc (TILE)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | — | 94,459 | 69,037 | 97,453 | -57,463 |
| Interest expense | US$ in thousands | 23,205 | 31,787 | 29,929 | 29,681 | 29,244 |
| Interest coverage | 0.00 | 2.97 | 2.31 | 3.28 | -1.96 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $—K ÷ $23,205K
= 0.00
Interface Inc's interest coverage ratio has shown a fluctuating trend over the past five years. In 2020, the ratio was negative at -1.96, indicating that the company's operating earnings were insufficient to cover its interest expenses. However, there was a significant improvement in 2021, with the interest coverage ratio reaching 3.28, suggesting that the company's operating profits were more than sufficient to cover its interest obligations.
In the subsequent years, Interface Inc's interest coverage ratio remained above 2, indicating a relatively healthy ability to meet its interest payments. However, the ratio decreased slightly in 2022 to 2.31 before increasing again to 2.97 in 2023. Notably, in 2024, the interest coverage ratio dropped to 0.00, which may raise concerns about the company's ability to generate enough earnings to cover its interest expenses.
Overall, Interface Inc's interest coverage ratio has shown some variability in recent years, with improvements in some periods and a concerning decline to zero in the most recent year. It would be important for stakeholders to monitor the company's financial performance closely to ensure its sustainability in meeting interest obligations.
Peer comparison
Dec 31, 2024