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.