Armstrong World Industries Inc (AWI)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 374,300 | 323,700 | 278,700 | 260,000 | 254,800 |
| Total assets | US$ in thousands | 1,842,700 | 1,672,400 | 1,687,200 | 1,710,000 | 1,718,500 |
| Operating ROA | 20.31% | 19.36% | 16.52% | 15.20% | 14.83% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $374,300K ÷ $1,842,700K
= 20.31%
Operating Return on Assets (ROA) measures a company's efficiency in generating operating profits relative to its total assets. In the case of Armstrong World Industries Inc, the trend of Operating ROA has been on an upward trajectory over the years, indicating improving operational efficiency and effectiveness in asset utilization.
Starting at 14.83% as of December 31, 2020, the Operating ROA increased steadily to 15.20% by December 31, 2021, demonstrating the company's ability to generate more operating income per dollar of assets employed. This trend continued as the Operating ROA further improved to 16.52% by December 31, 2022.
The most significant leap in Operating ROA was observed between December 31, 2022, and December 31, 2023, where the ratio surged to 19.36%, showcasing a substantial enhancement in operating profitability and efficiency in asset utilization. Maintaining this positive momentum, Armstrong World Industries Inc achieved an Operating ROA of 20.31% by December 31, 2024, reflecting the company's sustained focus on optimizing its operating performance and enhancing asset productivity.
Overall, the progressive increase in Operating ROA for Armstrong World Industries Inc signifies its ability to efficiently utilize its assets to generate operating income, highlighting a positive outlook for the company's operational performance and financial health in the analyzed period.
Peer comparison
Dec 31, 2024