Armstrong World Industries Inc (AWI)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 348,900 | 357,700 | 330,700 | 313,000 | 350,100 | 362,000 | 362,000 | 356,500 | 351,800 | 344,400 | 318,100 | 321,900 | 310,300 | 317,500 | 316,300 | 311,800 | 323,300 | 320,000 | 345,400 | 244,400 |
| 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 |
| Current ratio | 1.40 | 1.64 | 1.79 | 1.61 | 1.88 | 2.05 | 2.18 | 1.95 | 1.66 | 1.66 | 1.65 | 1.54 | 1.60 | 1.79 | 2.02 | 1.81 | 2.44 | 2.04 | 2.03 | 1.57 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $348,900K ÷ $249,700K
= 1.40
Armstrong World Industries Inc's current ratio has shown fluctuations over the past few years, ranging from a low of 1.40 to a high of 2.44. The current ratio measures the company's ability to cover its short-term obligations with its current assets. A higher current ratio indicates a stronger liquidity position, as the company has more current assets to cover its current liabilities.
The current ratio peaked at 2.44 on September 30, 2020, suggesting a robust liquidity position at that time. However, the ratio has since decreased and fluctuated within a range between 1.40 and 2.18. The ratio dropped to 1.40 on December 31, 2024, indicating a potential liquidity challenge or increased reliance on short-term financing to meet obligations.
Overall, Armstrong World Industries Inc's current ratio has experienced variability, which may be influenced by changes in its current assets or liabilities. It would be prudent to further investigate the reasons behind the fluctuations in the current ratio to assess the company's liquidity management and financial health accurately.
Peer comparison
Dec 31, 2024