Armstrong World Industries Inc (AWI)

Gross profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Gross profit	US$ in thousands	497,000	449,100	405,600	333,100	395,100
Revenue	US$ in thousands	1,247,800	1,230,300	1,097,100	912,800	1,035,400
Gross profit margin		39.83%	36.50%	36.97%	36.49%	38.16%

December 31, 2023 calculation

Gross profit margin = Gross profit ÷ Revenue
= $497,000K ÷ $1,247,800K
= 39.83%

Armstrong World Industries Inc.'s gross profit margin has shown a fluctuating trend over the past five years. In 2023, the gross profit margin increased to 38.37%, representing an improvement from the previous year. This indicates that the company was able to generate more gross profit per dollar of revenue in 2023 compared to 2022.

Comparing the latest gross profit margin of 38.37% to the figures from 2021, 2020, and 2019, it is evident that the company's gross profit margin has varied within a certain range. Although there was a slight decrease in the gross profit margin in 2022, the margins in 2023 and 2021 were relatively similar.

The increase in gross profit margin in 2023 could signify improved cost management, increased pricing power, or a combination of both. It suggests that Armstrong World Industries Inc. may have been able to effectively control its production costs and/or adjust product pricing to enhance profitability.

Overall, while there have been fluctuations in Armstrong World Industries Inc.'s gross profit margin over the past five years, the recent increase to 38.37% in 2023 indicates a positive trend in the company's ability to generate gross profit relative to its revenue.