Armstrong World Industries Inc (AWI)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 40.56% | 41.04% | 40.30% | 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% |
| Operating profit margin | 25.40% | 27.19% | 26.88% | 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% |
| Pretax margin | 23.57% | 25.28% | 24.90% | 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% |
| Net profit margin | 18.07% | 18.91% | 18.71% | 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% |
Armstrong World Industries Inc has shown improvement in its profitability ratios over the years. The Gross Profit Margin has been increasing steadily, reaching 40.56% by December 31, 2024, indicating the company's ability to control production costs and generate more revenue from sales.
The Operating Profit Margin, although fluctuating, has generally shown a positive trend, with a slight decrease by the end of 2024 compared to the peak in September 30, 2024. This margin reflects the company's efficiency in managing its operating expenses and generating profits from core business activities.
The Pretax Margin has also shown improvement from negative values in 2020 to positive values in subsequent years, reaching 25.28% by September 30, 2024. This highlights the company's ability to generate profits before accounting for taxes and indicates better financial performance and operational efficiency.
The Net Profit Margin has exhibited a similar positive trend, increasing from negative values in 2020 to 18.07% by December 31, 2024. This ratio signifies the company's overall profitability after all expenses, including taxes and interest payments, have been accounted for.
In conclusion, Armstrong World Industries Inc has demonstrated improving profitability metrics over the years, reflecting effective cost management, revenue generation, and overall financial health.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 13.34% | 14.03% | 13.98% | 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% |
| Return on total capital | 28.42% | 30.02% | 29.54% | 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% |
| Return on equity (ROE) | 32.47% | 35.30% | 37.72% | 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% |
Armstrong World Industries Inc's profitability ratios exhibit varying trends over the reported quarters. The Operating return on assets (Operating ROA) showed a consistent improvement from 21.25% in December 2019 to 19.36% in December 2023, signifying the company's efficient utilization of assets to generate operating profits.
Similarly, the Return on assets (ROA) improved from -3.19% in March 2020 to 14.03% in September 2024. The positive ROA values indicate the company's ability to generate profits relative to its total assets, thereby reflecting better financial health.
The Return on total capital also showed an improving trend, rising from -4.76% in March 2020 to 30.02% in September 2024, indicating effective utilization of both debt and equity capital to generate returns.
On the other hand, Return on equity (ROE) exhibited fluctuations, with an increase from -21.98% in December 2020 to a peak of 38.57% in September 2023. However, there was a slight decline to 32.47% by December 2024. This variation suggests changes in the company's profitability in relation to shareholders' equity over the reported periods.
In conclusion, Armstrong World Industries Inc has shown positive trends in its profitability ratios over the reporting periods, indicating enhanced efficiency in generating profits relative to assets and capital employed. However, fluctuations in ROE suggest the need for continuous monitoring and strategic decision-making to maintain sustainable profitability levels.