Interface Inc (TILE)
Interest coverage
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 102,761 | 133,953 | 122,754 | 111,574 | 96,877 | 48,839 | 47,670 | 57,817 | 77,482 | 133,335 | 131,794 | 124,104 | 111,361 | 108,169 | 93,549 | 77,357 | 72,464 | -58,388 | -167,148 | -142,928 |
| Interest expense (ttm) | US$ in thousands | 23,205 | 25,118 | 27,560 | 29,705 | 31,787 | 33,128 | 32,712 | 31,584 | 29,929 | 29,196 | 29,176 | 29,275 | 29,681 | 35,494 | 33,193 | 30,869 | 28,578 | 20,986 | 21,190 | 21,701 |
| Interest coverage | 4.43 | 5.33 | 4.45 | 3.76 | 3.05 | 1.47 | 1.46 | 1.83 | 2.59 | 4.57 | 4.52 | 4.24 | 3.75 | 3.05 | 2.82 | 2.51 | 2.54 | -2.78 | -7.89 | -6.59 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $102,761K ÷ $23,205K
= 4.43
Interface Inc's interest coverage ratio has fluctuated significantly over the past few years, based on the provided data. The interest coverage ratio measures a company's ability to pay its interest expenses on outstanding debt. A higher ratio indicates a company is more capable of meeting its interest obligations.
From June 30, 2020, to September 30, 2022, Interface Inc had negative interest coverage ratios, indicating that the company's operating income was insufficient to cover its interest expenses during those periods. This raised concerns about the company's financial health and ability to service its debt.
However, starting from December 31, 2022, the interest coverage ratio turned positive and showed steady improvement through December 31, 2024. This indicates that Interface Inc's operating income has improved sufficiently to cover its interest expenses. The upward trend in the interest coverage ratio suggests a positive shift in the company's financial performance and debt-servicing capabilities.
Overall, Interface Inc has made positive strides in improving its ability to cover interest expenses, moving from negative ratios to consistently positive ratios in recent periods. This suggests a strengthening financial position and potentially reduced risk of default on its debt obligations.
Peer comparison
Dec 31, 2024