Armstrong World Industries Inc (AWI)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 70,800 | 106,000 | 98,100 | 136,900 | 45,300 |
| Short-term investments | US$ in thousands | — | 3,700 | — | 41,000 | — |
| Total current liabilities | US$ in thousands | 194,500 | 182,700 | 209,600 | 172,300 | 155,200 |
| Cash ratio | 0.36 | 0.60 | 0.47 | 1.03 | 0.29 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($70,800K
+ $—K)
÷ $194,500K
= 0.36
The cash ratio for Armstrong World Industries Inc. has fluctuated over the past five years as follows: 0.47 in 2023, 0.70 in 2022, 0.56 in 2021, 0.87 in 2020, and 0.35 in 2019. The cash ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a greater ability to cover short-term obligations.
Armstrong World Industries Inc.'s cash ratio has shown some variability over the years, with a notable decrease from 2020 to 2021 and another decline in 2023. The lower cash ratio in 2023 compared to previous years may suggest a decreased ability to cover short-term liabilities with available cash and cash equivalents. This trend warrants further investigation into the company's liquidity position and cash management practices to ensure the ability to meet short-term obligations.
Peer comparison
Dec 31, 2023