Armstrong World Industries Inc (AWI)

Gross profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Gross profit	US$ in thousands	581,600	497,000	449,100	405,600	333,100
Revenue	US$ in thousands	1,442,900	1,247,800	1,230,300	1,097,100	912,800
Gross profit margin		40.31%	39.83%	36.50%	36.97%	36.49%

December 31, 2024 calculation

Gross profit margin = Gross profit ÷ Revenue
= $581,600K ÷ $1,442,900K
= 40.31%

The gross profit margin of Armstrong World Industries Inc has shown a relatively stable trend over the past five years, with slight fluctuations. The margin increased from 36.49% in December 2020 to 36.97% in December 2021, before decreasing slightly to 36.50% in December 2022. However, there was a notable improvement in the gross profit margin in the subsequent years, reaching 39.83% in December 2023 and further improving to 40.31% by December 2024.

This upward trend in the gross profit margin indicates that the company's ability to generate profits from its core business activities has been improving. The increase in the margin suggests that Armstrong World Industries Inc has effectively managed its production costs and maintained pricing power, resulting in a higher percentage of revenue being retained as gross profit.

Overall, the positive trend in the gross profit margin reflects well on the company's operational efficiency and pricing strategies, indicating a favorable performance in generating gross profit relative to its revenue over the five-year period.