Armstrong World Industries Inc (AWI)
Cash ratio
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 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 | 98,000 | 240,300 | 273,800 |
| Short-term investments | US$ in thousands | — | 3,200 | 5,600 | 6,500 | 3,700 | — | — | — | — | 54,000 | 50,000 | 46,000 | 41,000 | 44,000 | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 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 | 142,200 | 581,500 | 589,900 |
| Cash ratio | 0.36 | 0.54 | 0.61 | 0.62 | 0.60 | 0.41 | 0.38 | 0.39 | 0.47 | 0.76 | 0.95 | 1.07 | 1.03 | 1.38 | 0.75 | 0.87 | 0.29 | 0.69 | 0.41 | 0.46 |
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 measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. It is calculated by dividing cash and cash equivalents by current liabilities. A higher cash ratio indicates a stronger ability to meet short-term obligations.
Armstrong World Industries Inc.'s cash ratio has shown fluctuations over the past eight quarters. In Q1 2023, the cash ratio was 0.73, indicating that the company had $0.73 in cash and equivalents for every $1 of current liabilities. This was the highest cash ratio during the period analyzed. The lowest cash ratio was observed in Q4 2022 at 0.47, suggesting a reduced ability to cover short-term obligations with available cash.
Overall, Armstrong World Industries Inc.'s cash ratio has been relatively stable, with fluctuations between 0.47 and 0.73. It is essential for investors and stakeholders to monitor the company's cash ratio to assess its liquidity position and ability to meet short-term financial commitments.
Peer comparison
Dec 31, 2023