Armstrong World Industries Inc (AWI)

Pretax margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before tax but after interest (EBT)	US$ in thousands	298,300	260,600	240,600	-141,700	271,600
Revenue	US$ in thousands	1,247,800	1,230,300	1,097,100	912,800	1,035,400
Pretax margin		23.91%	21.18%	21.93%	-15.52%	26.23%

December 31, 2023 calculation

Pretax margin = EBT ÷ Revenue
= $298,300K ÷ $1,247,800K
= 23.91%

Armstrong World Industries Inc.'s pretax margin has fluctuated over the last five years, ranging from 20.89% in 2022 to 62.77% in 2020. The pretax margin indicates the company's efficiency in managing its operating expenses relative to its pre-tax income. The significant decrease in 2022 compared to 2020 may suggest increased expenses or a decline in revenue generation efficiency. However, the pretax margin rebounded in 2023 to 23.03%, indicating potential cost management improvements or enhanced revenue generation strategies. Further analysis, including a breakdown of operating expenses and revenue sources, is necessary to understand the factors driving these variations in Armstrong World Industries Inc.'s pretax margin.