Armstrong World Industries Inc (AWI)
Operating return on assets (Operating ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 345,600 | 363,900 | 339,600 | 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 |
| Total assets | US$ in thousands | 1,842,700 | 1,804,000 | 1,691,500 | 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 |
| Operating ROA | 18.76% | 20.17% | 20.08% | 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% |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $345,600K ÷ $1,842,700K
= 18.76%
The operating return on assets (operating ROA) of Armstrong World Industries Inc has shown fluctuations over the analyzed period.
- The operating ROA started strong at 21.25% as of December 31, 2019, indicating efficient utilization of assets to generate operating income.
- The ratio continued its positive trend, peaking at 21.30% as of March 31, 2020, showing sustained profitability and asset efficiency.
- However, from June 30, 2020, to December 31, 2020, there was a steady decline in operating ROA, dropping from 20.33% to 14.83%. This decrease may raise concerns about asset productivity and profitability.
- The downward trend continued into the first half of 2021, hitting a low of 13.58% as of March 31, 2021. This could signify challenges in efficiently utilizing assets to generate operating income.
- From June 30, 2021, to September 30, 2021, there was a slight recovery in the operating ROA, indicating some improvement in asset utilization and profitability.
- During the latter part of 2021 and into 2022, the operating ROA gradually increased from 15.20% as of December 31, 2021, to 16.93% as of March 31, 2023. This suggests enhanced asset efficiency and improved profitability.
- The operating ROA reached its peak at 20.17% as of September 30, 2024, showcasing strong performance in generating operating income relative to assets.
- However, by December 31, 2024, there was a slight decline in the operating ROA to 18.76%, indicating a dip in asset productivity and profitability compared to the previous quarter.
Overall, the operating ROA trend of Armstrong World Industries Inc demonstrates periods of fluctuation but generally reflects the company's ability to efficiently utilize assets to generate operating income, with some quarters showing stronger performance than others. Maintaining a stable or increasing trend in operating ROA is crucial for sustainable profitability and effective asset management.
Peer comparison
Dec 31, 2024