Armstrong World Industries Inc (AWI)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 323,700 | 278,700 | 260,000 | 254,800 | 317,400 |
| Total assets | US$ in thousands | 1,672,400 | 1,687,200 | 1,710,000 | 1,718,500 | 1,493,300 |
| Operating ROA | 19.36% | 16.52% | 15.20% | 14.83% | 21.25% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $323,700K ÷ $1,672,400K
= 19.36%
The operating return on assets (operating ROA) of Armstrong World Industries Inc. has shown fluctuating trends over the past five years. In 2023, the operating ROA improved to 14.02% compared to 12.57% in 2022, indicating the company's ability to generate operating income relative to its total assets increased. This could be a positive sign of improved operational efficiency or profitability.
Looking back to 2021, the operating ROA was at 9.84%, showing a noticeable increase from the previous year. However, in 2020, the operating ROA was fairly consistent at 9.88%, implying stable performance in utilizing assets to generate operational profits.
A notable observation is the significant drop in the operating ROA in 2019 to 14.79%, which was the highest among the years in consideration. This decrease could potentially indicate a shift in profitability or asset utilization strategies during that period.
Overall, the trend in Armstrong World Industries Inc.'s operating ROA suggests fluctuations over the years, with varying levels of operational efficiency and profitability in relation to its total assets. Further analysis would be required to understand the underlying factors contributing to these changes and to assess the company's overall financial performance.
Peer comparison
Dec 31, 2023