Armstrong World Industries Inc (AWI)
Cash ratio
| Dec 31, 2024 | Sep 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 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 79,300 | 73,700 | 69,600 | 70,800 | 96,600 | 101,600 | 96,000 | 106,000 | 86,800 | 79,300 | 76,100 | 98,100 | 94,300 | 119,000 | 121,600 | 136,900 | 138,800 | 117,100 | 146,900 | 45,300 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 249,700 | 218,400 | 184,400 | 194,500 | 185,800 | 176,800 | 166,300 | 182,700 | 212,400 | 207,200 | 192,800 | 209,600 | 194,300 | 177,600 | 156,200 | 172,300 | 132,300 | 156,900 | 169,800 | 155,200 |
| Cash ratio | 0.32 | 0.34 | 0.38 | 0.36 | 0.52 | 0.57 | 0.58 | 0.58 | 0.41 | 0.38 | 0.39 | 0.47 | 0.49 | 0.67 | 0.78 | 0.79 | 1.05 | 0.75 | 0.87 | 0.29 |
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 shown fluctuations over the period from December 31, 2019, to December 31, 2024. The cash ratio, which measures the company's ability to cover its current liabilities with its cash and cash equivalents, started at 0.29 on December 31, 2019.
Thereafter, the ratio increased steadily, reaching its peak at 1.05 on September 30, 2020. This level above 1 indicates that the company had more than enough cash to cover its short-term obligations at that point.
However, the ratio then experienced a decline, dropping to 0.47 on December 31, 2021, and further decreasing to 0.32 by December 31, 2024. These lower ratios suggest that Armstrong World Industries Inc may have had a reduced ability to cover its current liabilities solely with its cash holdings during these periods.
Overall, the cash ratio trend indicates some variability in the company's liquidity position, with periods of stronger cash coverage followed by declines. Further analysis of the company's cash management practices and overall liquidity position would be beneficial to understand the implications of these fluctuating ratios.
Peer comparison
Dec 31, 2024