Interface (Interface) ROC (Joel Greenblatt) %

: 20.90% (As of Dec. 2023)

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Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. Interface's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 20.90%.

The historical rank and industry rank for Interface's ROC (Joel Greenblatt) % or its related term are showing as below:

TILE' s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -7.34 Med: 14.83 Max: 28.32
Current: 14.2

During the past 13 years, Interface's highest ROC (Joel Greenblatt) % was 28.32%. The lowest was -7.34%. And the median was 14.83%.

TILE's ROC (Joel Greenblatt) % is ranked worse than
56.33% of 1660 companies
in the Construction industry
Industry Median: 18 vs TILE: 14.20

Interface's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 0.00% per year.

Interface ROC (Joel Greenblatt) % Historical Data

The historical data trend for Interface's ROC (Joel Greenblatt) % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Interface Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC (Joel Greenblatt) %

20.22

-7.34

15.18

10.54

14.05

Interface Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROC (Joel Greenblatt) %																-9.51	4.61	17.22	14.74	20.90

Competitive Comparison

For the Building Products & Equipment subindustry, Interface's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Interface ROC (Joel Greenblatt) % Distribution

For the Construction industry and Industrials sector, Interface's ROC (Joel Greenblatt) % distribution charts can be found below:

* The bar in red indicates where Interface's ROC (Joel Greenblatt) % falls into.

Interface ROC (Joel Greenblatt) % Calculation

Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:

ROC (Joel Greenblatt) %

EBIT

Average of (Net fixed Assets

Net Working Capital)

EBIT stands for Earnings Before Interest and Taxes.

Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.

GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.

	Working Capital		(Q: Sep. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(143.884	+	289.32	+	33.003)	-	(190.868	+	0	+	0)
=	275.339

	Working Capital		(Q: Dec. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(163.386	+	279.079	+	30.895)	-	(102.235	+	0	+	91.567)
=	279.558

When net working capital is negative, 0 is used.

So ROC (Joel Greenblatt) % of Interface for the quarter that ended in Dec. 2023 can be restated as:

	ROC (Joel Greenblatt) %		(Q: Dec. 2023 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Sep. 2023		Q: Dec. 2023
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	134.98	/	( ( (358.005 + max(275.339, 0))	+	(378.659 + max(279.558, 0)) )	/	2 )
=	134.98	/	( ( 633.344	+	658.217 )	/	2 )
=	134.98	/	645.7805
=	20.90 %

Note: The EBIT data used here is four times the quarterly (Dec. 2023) EBIT data.

Interface (NAS:TILE) ROC (Joel Greenblatt) % Explanation

The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.

Joel Greenblatt uses his definition of Return on Capital and Earnings Yield (Joel Greenblatt) % to rank companies.

Interface ROC (Joel Greenblatt) % Related Terms

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Interface (Interface) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Interface Inc (NAS:TILE) » Definitions » ROC (Joel Greenblatt) %

Comparable Companies

Traded in Other Exchanges

IF6N:Germany IF6N:Germany

Address

1280 West Peachtree Street, Atlanta, GA, USA, 30309

Website

https://www.interface.com

Interface Inc is engaged in the designing, production, and sale of carpet tile. It also provides Luxury Vinyl tiles and rubber flooring. The company mainly targets corporate and noncorporate office markets, including government, education, healthcare, hospitality, and retailers. Its geographical segments include the Americas, Europe, and Asia-Pacific.

Executives

Stansfield Nigel	officer: VP & Chief Innovation Officer	2859 PACES FERRY ROAD, SUITE 2000, ATLANTA GA 30339
Robert T O'brien	director	1280 WEST PEACHTREE STREET NW, ATLANTA GA 30309
Laurel Hurd	officer: President & CEO	C/O NEWELL BRANDS INC., 6655 PEACHTREE DUNWOODY ROAD, ATLANTA GA 30328
James Poppens	officer: Vice President	1280 WEST PEACHTREE STREET NW, ATLANTA GA 30309
Robert Pridgen	officer: Chief Accounting Officer	1280 WEST PEACHTREE STREET NW, ATLANTA GA 30309
Christopher G Kennedy	director	C/O INTERFACE INC, 2859 PACES FERRY ROAD SUITE 2000, ATLANTA GA 30339
Gibson Dwight Audley Konrad	director	C/O SPX FLOW, 13320 BALLANTYNE CORPORATE PLACE, CHARLOTTE NC 28277
Joseph Keough	director	3715 NORTHSIDE PKWY NW, SUITE 4-600, ATLANTA GA 30327
Andreas Mueller	officer: VP & Chief Customer Officer	1280 WEST PEACHTREE ST. NW, ATLANTA GA 30309
Catherine M Kilbane	director
Daniel T Hendrix	director, officer: President and CEO	2859 PACES ROAD, ATLANTA GA 30339
Gregory J Bauer	officer: VP & Chief Accounting Officer	2859 PACES FERRY RD., STE 2000, ATLANTA GA 30339
Robert Coombs	officer: Vice President	2850 PACES FERRY RD, STE 2000, ATLANTA GA 30339
Jeffrey Chadwick Scales	officer: VP & Chief Innovation Officer	2859 PACES FERRY ROAD, SUITE 2000, ATLANTA GA 30339
Bruce Andrew Hausmann	officer: VP & CFO	2859 PACES FERRY ROAD, SUITE 2000, ATLANTA GA 30339