Interface Inc (TILE)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 95,441 | 45,243 | 48,878 | 52,573 | 71,846 | 121,965 | 117,937 | 113,413 | 102,314 | 88,260 | 77,331 | 60,978 | -50,210 | -42,972 | -13,272 | 17,062 | 127,472 | 103,923 | 75,477 | 63,331 |
| Interest expense (ttm) | US$ in thousands | 31,787 | 33,128 | 32,712 | 31,584 | 29,929 | 29,196 | 29,176 | 29,275 | 29,681 | 35,495 | 33,194 | 30,870 | 29,244 | 21,497 | 22,648 | 24,493 | 25,656 | 26,409 | 24,684 | 20,135 |
| Interest coverage | 3.00 | 1.37 | 1.49 | 1.66 | 2.40 | 4.18 | 4.04 | 3.87 | 3.45 | 2.49 | 2.33 | 1.98 | -1.72 | -2.00 | -0.59 | 0.70 | 4.97 | 3.94 | 3.06 | 3.15 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $95,441K ÷ $31,787K
= 3.00
Interface Inc.'s interest coverage ratio has shown a declining trend over the past eight quarters, from 4.32 in Q2 2022 to 3.21 in Q4 2023. This indicates that the company's ability to cover interest expenses with its earnings has weakened over time. While a ratio above 1 suggests the company is generating enough earnings to cover its interest payments, a declining trend could signal potential financial distress or inefficiencies impacting profitability. Interface Inc. may need to closely monitor its interest coverage ratio and take necessary steps to improve its financial health and stability.
Peer comparison
Dec 31, 2023