Armstrong World Industries Inc (AWI)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 70,800 | 106,000 | 98,100 | 136,900 | 45,300 |
| Short-term investments | US$ in thousands | — | 3,700 | — | 41,000 | — |
| Receivables | US$ in thousands | 111,000 | 112,400 | 109,100 | 78,300 | 85,100 |
| Total current liabilities | US$ in thousands | 194,500 | 182,700 | 209,600 | 172,300 | 155,200 |
| Quick ratio | 0.93 | 1.22 | 0.99 | 1.49 | 0.84 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($70,800K
+ $—K
+ $111,000K)
÷ $194,500K
= 0.93
The quick ratio of Armstrong World Industries Inc. has fluctuated over the past five years. In 2023, the quick ratio was 1.04, indicating that the company has $1.04 in liquid assets available to cover each $1 of current liabilities. This ratio decreased compared to 2022 when it was 1.32.
The quick ratio in 2023 may suggest a slight decline in the company's ability to meet its short-term obligations using its most liquid assets. However, a quick ratio of 1.04 is still considered acceptable as it shows that Armstrong World Industries Inc. has sufficient liquid assets to cover its current liabilities. Compared to 2021 and 2019, the quick ratio in 2023 is relatively similar, indicating stability in the company's liquidity position.
Overall, while there has been a decrease in the quick ratio from the previous year, Armstrong World Industries Inc. still demonstrates a reasonable ability to meet its short-term financial obligations with its liquid assets as of December 31, 2023.
Peer comparison
Dec 31, 2023