Armstrong World Industries Inc (AWI)

Net 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
Net income (ttm)	US$ in thousands	245,800	253,100	236,400	223,800	225,800	213,800	205,800	202,900	196,000	189,300	192,200	183,200	164,100	167,300	162,500	-99,100	-74,200	-55,000	-50,800	214,500
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
Net profit margin		18.07%	18.91%	18.71%	17.94%	17.70%	17.03%	16.41%	16.49%	16.32%	16.19%	17.03%	16.70%	15.78%	16.83%	17.72%	-10.86%	-7.75%	-5.59%	-4.85%	20.66%

December 31, 2024 calculation

Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $245,800K ÷ $1,360,400K
= 18.07%

The net profit margin of Armstrong World Industries Inc has displayed fluctuating trends over the analyzed period. From December 2019 to March 2020, the company experienced a significant decline in net profit margin, turning negative to -4.85%. This negative trend continued into June 2020 and September 2020, with further decreases to -5.59% and -7.75% respectively.

Subsequently, there was a slight improvement in the net profit margin by the end of December 2020, although it remained negative at -10.86%. From March 2021 onwards, the net profit margin began to show positive growth, reaching 17.72% in March 2021. This positive momentum was mainly sustained throughout the following quarters, demonstrating a relatively stable performance in terms of profitability.

Notable fluctuations in net profit margin were observed in the analysis period, with slight ups and downs. Although there were some variations, the overall trend in recent periods indicates a gradual increase in profitability, with the net profit margin ranging from 16.19% to 18.91% as of the most recent data point of December 2024. This suggests that Armstrong World Industries Inc has been able to effectively manage its expenses and generate sufficient profits relative to its revenue, showcasing improved financial performance and stability over time.