Armstrong World Industries Inc (AWI)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 39.83% | 38.33% | 37.05% | 36.59% | 36.50% | 36.64% | 37.06% | 37.25% | 36.97% | 37.11% | 36.86% | 35.91% | 36.49% | 35.38% | 36.55% | 37.68% | 38.06% | 39.34% | 38.52% | 37.30% |
| Operating profit margin | 25.94% | 25.71% | 23.99% | 22.78% | 22.65% | 21.95% | 22.44% | 23.85% | 23.70% | 23.90% | 25.03% | 25.40% | 27.91% | 28.49% | 31.93% | 32.31% | 30.58% | 31.15% | 28.34% | 26.81% |
| Pretax margin | 23.91% | 23.59% | 22.14% | 21.14% | 21.18% | 20.70% | 20.98% | 22.37% | 21.93% | 21.19% | 22.35% | 22.86% | -15.52% | -12.19% | -9.85% | -8.07% | 26.16% | 26.42% | 27.17% | 26.91% |
| Net profit margin | 17.94% | 17.70% | 17.03% | 16.41% | 16.49% | 16.32% | 16.19% | 17.03% | 16.70% | 15.78% | 16.83% | 17.72% | -10.86% | -7.75% | -5.59% | -4.85% | 20.66% | 20.39% | 21.01% | 20.77% |
Armstrong World Industries Inc. has shown consistent improvement in its profitability ratios over the quarters. The gross profit margin has been gradually increasing, reaching 38.37% in Q4 2023, indicating effective cost management and pricing strategies.
The operating profit margin has also improved over time, with a peak of 18.70% in Q3 2023, suggesting efficient operation and control of operating expenses. Furthermore, the pretax margin has shown a similar upward trend, hitting 23.37% in Q3 2023, which reflects the company's ability to generate income before accounting for taxes.
The net profit margin, representing the portion of revenue that translates into profit after all expenses, has generally increased over the quarters, reaching 17.54% in Q3 2023. This signifies effective management of both operating and non-operating expenses to maximize profitability.
Overall, Armstrong World Industries Inc. has demonstrated consistent improvement in its profitability ratios, showcasing strong financial performance and effective management of its resources.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 13.38% | 13.18% | 12.49% | 12.19% | 12.03% | 11.27% | 10.92% | 11.25% | 10.71% | 9.63% | 9.75% | 9.47% | -5.77% | -4.54% | -3.56% | -3.19% | 14.36% | 13.34% | 10.81% | 10.15% |
| Return on total capital | 28.86% | 28.30% | 25.85% | 24.54% | 24.26% | 23.06% | 22.85% | 23.83% | 23.40% | 21.63% | 21.27% | 20.09% | -10.30% | -8.31% | -6.50% | -4.76% | 31.98% | 29.76% | 31.14% | 29.74% |
| Return on equity (ROE) | 37.82% | 38.57% | 37.73% | 37.78% | 37.93% | 37.61% | 35.87% | 35.75% | 35.25% | 31.42% | 33.57% | 34.31% | -21.98% | -16.76% | -13.65% | -13.71% | 58.78% | 54.83% | 84.08% | 80.46% |
Armstrong World Industries Inc. has demonstrated consistent profitability as evidenced by the trend in its profitability ratios over the quarters presented. The operating return on assets (Operating ROA) has shown an increasing trend from 10.55% in Q1 2022 to 14.02% in Q4 2023, indicating an improvement in the company's ability to generate operating income from its assets.
The Return on assets (ROA) has also shown a steady increase from 11.23% in Q2 2022 to 13.38% in Q4 2023, suggesting that Armstrong World Industries Inc. has been effectively utilizing its assets to generate profits for its shareholders.
Furthermore, the Return on total capital has consistently increased over the quarters, reaching 26.87% in Q4 2023, indicating that the company has been efficient in generating returns for both its equity and debt holders.
Lastly, the Return on equity (ROE) has maintained a high level above 35% throughout the quarters, demonstrating the company's ability to generate strong returns for its equity shareholders.
Overall, Armstrong World Industries Inc. has been successful in maintaining and improving its profitability ratios over the periods presented, reflecting a robust financial performance and effective management of its resources.