Armstrong World Industries Inc (AWI)

Gross profit margin

		Dec 31, 2024	Sep 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019
Gross profit (ttm)	US$ in thousands	551,800	549,300	509,200	497,000	489,000	465,100	459,000	449,100	440,100	433,300	420,300	405,600	385,900	366,400	329,300	333,100	338,900	359,400	395,000	395,100
Revenue (ttm)	US$ in thousands	1,360,400	1,338,600	1,263,600	1,247,800	1,275,800	1,255,300	1,254,300	1,230,300	1,201,100	1,169,200	1,128,400	1,097,100	1,040,000	994,100	917,000	912,800	958,000	983,200	1,048,400	1,038,100
Gross profit margin		40.56%	41.04%	40.30%	39.83%	38.33%	37.05%	36.59%	36.50%	36.64%	37.06%	37.25%	36.97%	37.11%	36.86%	35.91%	36.49%	35.38%	36.55%	37.68%	38.06%

December 31, 2024 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $551,800K ÷ $1,360,400K
= 40.56%

The gross profit margin of Armstrong World Industries Inc has shown fluctuations over the period from December 31, 2019, to December 31, 2024. The trend indicates that the gross profit margin initially decreased from 38.06% in December 2019 to 35.38% in September 2020. However, it started increasing gradually thereafter, reaching a peak of 41.04% as of September 30, 2024.

The company appears to have successfully managed its cost of goods sold relative to its revenue during this period, resulting in an improvement in the gross profit margin. This could be indicative of efficient cost control measures or possibly an increase in pricing power.

A rising gross profit margin is generally seen as a positive indicator as it suggests that the company is able to generate more profit from its core operations. However, it is essential to investigate further to understand the specific drivers behind the changes observed in Armstrong World Industries Inc's gross profit margin.