Armstrong World Industries Inc (AWI)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 79,300 | 70,800 | 106,000 | 98,100 | 136,900 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 249,700 | 194,500 | 182,700 | 209,600 | 172,300 |
| Cash ratio | 0.32 | 0.36 | 0.58 | 0.47 | 0.79 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($79,300K
+ $—K)
÷ $249,700K
= 0.32
The cash ratio of Armstrong World Industries Inc has exhibited a declining trend over the years. As of December 31, 2020, the cash ratio stood at 0.79, indicating that the company had $0.79 in cash and cash equivalents for every $1 of current liabilities. However, by December 31, 2024, this ratio had decreased to 0.32, suggesting a reduction in the company's ability to cover its short-term obligations with its available cash reserves.
This downward trajectory could potentially signal a liquidity concern for Armstrong World Industries Inc, as a lower cash ratio may indicate a higher dependency on other sources of funding to meet immediate financial obligations. It would be advisable for the company to closely monitor its liquidity position and explore strategies to improve its cash reserves relative to its current liabilities in order to strengthen its financial stability.
Peer comparison
Dec 31, 2024