Armstrong World Industries Inc (AWI)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 79,300 | 70,800 | 106,000 | 98,100 | 136,900 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 134,400 | 111,000 | 112,400 | 109,100 | 78,300 |
| Total current liabilities | US$ in thousands | 249,700 | 194,500 | 182,700 | 209,600 | 172,300 |
| Quick ratio | 0.86 | 0.93 | 1.20 | 0.99 | 1.25 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($79,300K
+ $—K
+ $134,400K)
÷ $249,700K
= 0.86
The quick ratio of Armstrong World Industries Inc has shown some fluctuations over the past five years. As of December 31, 2020, the quick ratio was a healthy 1.25, indicating that the company had $1.25 in liquid assets available to cover each dollar of current liabilities. However, by the end of 2021, the quick ratio had decreased to 0.99, suggesting a potential strain on the company's short-term liquidity.
In 2022, the quick ratio improved to 1.20, indicating that Armstrong World Industries Inc had strengthened its ability to meet short-term obligations with liquid assets. However, this improvement was short-lived, as the quick ratio declined to 0.93 by the end of 2023, raising concerns about the company's liquidity position.
The most recent data point, as of December 31, 2024, reflects a quick ratio of 0.86, signaling a further deterioration in the company's ability to cover short-term liabilities with readily available assets. Overall, the trend in Armstrong World Industries Inc's quick ratio over the past five years indicates fluctuations in liquidity, with a general downward trajectory, which may warrant closer monitoring and management attention to ensure the company's short-term financial health and stability.
Peer comparison
Dec 31, 2024