Armstrong World Industries Inc (AWI)
Operating return on assets (Operating ROA)
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 323,700 | 328,000 | 301,100 | 285,700 | 278,700 | 263,600 | 262,400 | 269,100 | 260,000 | 248,600 | 248,800 | 232,900 | 254,800 | 272,900 | 313,900 | 338,700 | 317,400 | 307,700 | 275,700 | 254,500 |
| Total assets | US$ in thousands | 1,672,400 | 1,713,800 | 1,712,300 | 1,687,900 | 1,687,200 | 1,739,400 | 1,734,000 | 1,708,100 | 1,710,000 | 1,704,900 | 1,716,700 | 1,715,300 | 1,718,500 | 1,633,700 | 1,544,300 | 1,590,300 | 1,493,300 | 1,509,700 | 1,890,000 | 1,942,600 |
| Operating ROA | 19.36% | 19.14% | 17.58% | 16.93% | 16.52% | 15.15% | 15.13% | 15.75% | 15.20% | 14.58% | 14.49% | 13.58% | 14.83% | 16.70% | 20.33% | 21.30% | 21.25% | 20.38% | 14.59% | 13.10% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $323,700K ÷ $1,672,400K
= 19.36%
Armstrong World Industries Inc.'s operating return on assets (ROA) has shown a generally increasing trend over the past eight quarters, indicating improved efficiency in generating operating profits from its assets. The Q4 2023 operating ROA of 14.02% is among the highest in the provided data series, demonstrating the company's ability to generate a solid return on its assets in the most recent quarter.
Comparing Q4 2023 to the same quarter in the prior year (Q4 2022), there has been a noticeable improvement from 12.57% to 14.02% in operating ROA. This suggests that Armstrong World Industries Inc. has become more efficient in generating operating profits relative to its asset base over the one-year period.
Furthermore, the steady increase in operating ROA from Q1 2022 to Q4 2023 indicates a positive performance trend, as the metric has consistently trended upwards over the past eight quarters. This sustained improvement signals that the company has been effectively utilizing its assets to generate operating income, which is a positive indicator of operational efficiency and productivity.
Overall, the upward trajectory of Armstrong World Industries Inc.'s operating ROA reflects a positive trend in its operational performance and suggests that the company is effectively leveraging its assets to drive profitability.
Peer comparison
Dec 31, 2023