Interface Inc (TILE)

Solvency ratios

	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
Debt-to-assets ratio	0.33	0.36	0.38	0.39	0.40	0.41	0.40	0.39	0.38	0.40	0.41	0.42	0.43	0.42	0.45	0.46	0.40	0.42	0.44	0.43
Debt-to-capital ratio	0.49	0.53	0.55	0.57	0.59	0.61	0.60	0.58	0.58	0.60	0.62	0.63	0.63	0.66	0.70	0.71	0.61	0.62	0.65	0.64
Debt-to-equity ratio	0.96	1.12	1.21	1.34	1.41	1.58	1.53	1.38	1.38	1.51	1.61	1.74	1.72	1.91	2.28	2.50	1.53	1.66	1.82	1.75
Financial leverage ratio	2.89	3.10	3.17	3.41	3.50	3.86	3.78	3.57	3.66	3.83	3.94	4.11	4.00	4.55	5.04	5.39	3.86	3.99	4.13	4.02

Based on the solvency ratios of Interface Inc. for the past eight quarters, we can observe the following trends:

1. Debt-to-assets ratio: This ratio measures the proportion of a company's assets that are financed by debt. Interface Inc. has shown a declining trend in this ratio from 0.41 in Q4 2022 to 0.34 in Q4 2023. This indicates that the company has been able to reduce its reliance on debt to finance its assets over the period.

2. Debt-to-capital ratio: This ratio reflects the proportion of a company's capital that is funded by debt. Interface Inc. has also shown a decreasing trend in this ratio, decreasing from 0.59 in Q4 2022 to 0.49 in Q4 2023. The decreasing trend indicates that the company has been successful in reducing its debt relative to its total capital.

3. Debt-to-equity ratio: This ratio compares a company's total debt to its total equity, reflecting the level of leverage employed by the company. Interface Inc. has exhibited a declining trend in this ratio, decreasing from 1.44 in Q4 2022 to 0.98 in Q4 2023. The decreasing trend suggests that the company has been able to decrease its debt relative to its equity over the period.

4. Financial leverage ratio: This ratio measures the extent to which a company relies on debt to finance its operations. Interface Inc. has shown a decreasing trend in this ratio from 3.50 in Q4 2022 to 2.89 in Q4 2023. The decreasing trend indicates that the company has reduced its financial leverage over the period, potentially reducing its financial risk.

Overall, the decreasing trends in all the solvency ratios indicate that Interface Inc. has been successful in managing its debt levels and improving its financial stability over the past eight quarters. It suggests a positive financial performance and a more sustainable capital structure for the company.

Coverage ratios

	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
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

Interface Inc.'s interest coverage ratio has shown some fluctuations over the past eight quarters. The interest coverage ratio measures the company's ability to meet its interest obligations with its operating income. A higher ratio indicates a stronger ability to cover interest expenses.

For Interface Inc., the interest coverage ratio has ranged from a low of 2.62 in Q2 2023 to a high of 4.32 in Q2 2022. Overall, the company's interest coverage has generally been above 3, which suggests that Interface Inc. has been able to comfortably cover its interest expenses with its operating income.

However, it is important to note the slight downward trend in the interest coverage ratio from Q1 2022 to Q2 2023, indicating a potential decrease in the company's ability to cover interest expenses. Further monitoring of Interface Inc.'s financial performance and management of interest expenses may be warranted to ensure continued financial stability and sustainability.