Armstrong World Industries Inc (AWI)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 313,000 | 356,500 | 321,900 | 311,800 | 244,400 |
| Total current liabilities | US$ in thousands | 194,500 | 182,700 | 209,600 | 172,300 | 155,200 |
| Current ratio | 1.61 | 1.95 | 1.54 | 1.81 | 1.57 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $313,000K ÷ $194,500K
= 1.61
The current ratio of Armstrong World Industries Inc. has exhibited fluctuations over the past five years. In 2023, the current ratio stands at 1.61, indicating that the company may have slightly less liquidity to cover its short-term obligations compared to the previous year. However, the ratio remains above 1, suggesting that Armstrong World Industries Inc. still has more current assets than current liabilities, although to a lesser extent.
In 2022, the company had a higher current ratio of 1.95, indicating stronger short-term liquidity compared to 2023. This suggests that Armstrong World Industries Inc. had more current assets relative to current liabilities in 2022, which may indicate a more favorable financial position in terms of short-term obligations.
In 2021, the current ratio was 1.54, reflecting a decrease in short-term liquidity compared to the previous year. The ratio of 1.81 in 2020 was higher than that in 2021, indicating an improvement in the company's ability to cover its short-term obligations.
In 2019, the current ratio was 1.57, slightly lower than in 2020, suggesting that the company had a slightly lower capacity to meet its short-term liabilities relative to the previous year.
Overall, while there have been fluctuations in the current ratio of Armstrong World Industries Inc. over the past five years, the company has generally maintained a current ratio above 1, indicating a reasonable ability to cover its short-term obligations with its current assets.
Peer comparison
Dec 31, 2023