Armstrong World Industries Inc (AWI)

Net profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	264,900	223,800	202,900	183,200	-99,100
Revenue	US$ in thousands	1,442,900	1,247,800	1,230,300	1,097,100	912,800
Net profit margin		18.36%	17.94%	16.49%	16.70%	-10.86%

December 31, 2024 calculation

Net profit margin = Net income ÷ Revenue
= $264,900K ÷ $1,442,900K
= 18.36%

Armstrong World Industries Inc's net profit margin has shown significant improvement over the past few years, reflecting the company's ability to generate profits relative to its revenue. In December 2020, the net profit margin was negative, indicating a loss-making period. However, the company turned things around swiftly, achieving a net profit margin of 16.70% in December 2021. This positive trend continued into the following years, with net profit margins of 16.49% in 2022, 17.94% in 2023, and 18.36% in 2024.

The increasing trend in net profit margins suggests that Armstrong World Industries Inc has been effectively managing its costs and improving operational efficiency, resulting in higher profitability. This improvement in profitability ratios is favorable for investors and indicates the company's ability to generate stronger returns on its sales. Overall, the upward trajectory of the net profit margin indicates a positive financial performance for Armstrong World Industries Inc.