Armstrong World Industries Inc (AWI)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 591,800 | 535,000 | 519,700 | 450,900 | 364,900 |
| ROE | 37.82% | 37.93% | 35.25% | -21.98% | 58.78% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $223,800K ÷ $591,800K
= 37.82%
Armstrong World Industries Inc.'s return on equity (ROE) has displayed fluctuation over the past five years. In 2023, the ROE stood at 37.80%, slightly down from 37.87% in 2022. The company's ROE remained relatively stable around the mid-30% range in 2021, but there was a significant increase in 2020, reaching 143.18%. This surge in ROE in 2020 could be attributed to various factors such as improved operational efficiency, increased profitability, or capital structure changes.
However, the ROE dropped back to 58.65% in 2019. It is essential to investigate the reasons behind such fluctuations in ROE to determine the company's overall performance and sustainability of returns generated for its shareholders. A high ROE indicates that the company is effectively utilizing its shareholders' equity to generate profits, while a low ROE may suggest inefficiency or reduced profitability. Further analysis of Armstrong World Industries Inc.'s financial statements and business operations is necessary to provide a more comprehensive understanding of the factors influencing its ROE over the years.
Peer comparison
Dec 31, 2023