Armstrong World Industries Inc (AWI)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 223,800 | 202,900 | 183,200 | -99,100 | 214,500 |
| Total assets | US$ in thousands | 1,672,400 | 1,687,200 | 1,710,000 | 1,718,500 | 1,493,300 |
| ROA | 13.38% | 12.03% | 10.71% | -5.77% | 14.36% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $223,800K ÷ $1,672,400K
= 13.38%
Armstrong World Industries Inc.'s return on assets (ROA) has exhibited variability over the past five years. In 2023, the ROA stood at 13.38%, representing an increase from the previous year's 12.01%. This improvement suggests that the company is effectively generating profits from its assets.
Comparing the current ROA to historical values, it appears that the company's performance in 2023 was stronger than in 2022 and 2021 when the ROA was 12.01% and 10.70% respectively. However, the ROA of 13.38% in 2023 falls below the exceptionally high ROA of 37.57% recorded in 2020, suggesting a potential decline in asset efficiency compared to that exceptional year.
When juxtaposed with 2019's ROA of 14.33%, the 2023 figure may be viewed as a return to a more normalized level of profitability. Overall, while the company's ROA has fluctuated over the years, the performance in 2023 indicates that Armstrong World Industries Inc. remains effective in generating returns from its asset base, albeit not reaching the peak levels seen in 2020.
Peer comparison
Dec 31, 2023