Armstrong World Industries Inc (AWI)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 39.83% | 36.50% | 36.97% | 36.49% | 38.16% |
| Operating profit margin | 25.94% | 22.65% | 23.70% | 27.91% | 30.65% |
| Pretax margin | 23.91% | 21.18% | 21.93% | -15.52% | 26.23% |
| Net profit margin | 17.94% | 16.49% | 16.70% | -10.86% | 20.72% |
Armstrong World Industries Inc. has shown consistent performance in terms of profitability over the past five years. The gross profit margin has improved steadily from 35.55% in 2020 to 38.37% in 2023, indicating the company's ability to efficiently manage production costs and generate revenue.
The operating profit margin has fluctuated slightly but generally trended upwards, reaching 18.11% in 2023. This signifies the company's effectiveness in controlling operating expenses and optimizing operational efficiency.
The pretax margin has varied significantly over the years, with a notable decrease in 2020 followed by a recovery and improvement to 23.03% in 2023. The sharp increase in 2020 could be attributed to one-time events or changes in tax regulations, while subsequent years reflect a more normalized performance.
The net profit margin also experienced significant fluctuations, with a notable spike to 68.91% in 2020, likely due to extraordinary items or accounting adjustments. In 2023, the net profit margin settled at 17.27%, indicating a return to more typical profitability levels.
Overall, Armstrong World Industries Inc. has demonstrated a solid performance in managing its profitability ratios, with improvements in gross profit margin and operating profit margin, despite some fluctuations in pretax and net profit margins over the years.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 19.36% | 16.52% | 15.20% | 14.83% | 21.25% |
| Return on assets (ROA) | 13.38% | 12.03% | 10.71% | -5.77% | 14.36% |
| Return on total capital | 28.86% | 24.26% | 23.40% | -10.30% | 31.98% |
| Return on equity (ROE) | 37.82% | 37.93% | 35.25% | -21.98% | 58.78% |
Armstrong World Industries Inc. has shown consistent profitability over the years based on its profitability ratios.
- Operating return on assets (Operating ROA) has gradually increased from 9.84% in 2021 to 14.02% in 2023, indicating an improvement in the company's ability to generate operating profits from its assets.
- Return on assets (ROA) has also shown a positive trend, increasing from 10.70% in 2021 to 13.38% in 2023, demonstrating the company's efficiency in generating profits relative to its total assets.
- Return on total capital has exhibited an increasing trend, reaching 26.87% in 2023 from 19.69% in 2020, indicating efficient utilization of both debt and equity to generate profits.
- Return on equity (ROE) has shown fluctuation over the years, with a significant increase in 2020 to 143.18% before stabilizing around 37-38% in the subsequent years. This suggests that the company is effectively utilizing shareholders' equity to generate returns.
Overall, Armstrong World Industries Inc. has displayed a strong performance in terms of profitability ratios, showcasing consistent improvement in generating profits from its assets, capital, and shareholders' equity.