Armstrong World Industries Inc (AWI)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 264,900 | 223,800 | 202,900 | 183,200 | -99,100 |
| Total stockholders’ equity | US$ in thousands | 757,100 | 591,800 | 535,000 | 519,700 | 450,900 |
| ROE | 34.99% | 37.82% | 37.93% | 35.25% | -21.98% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $264,900K ÷ $757,100K
= 34.99%
Armstrong World Industries Inc's return on equity (ROE) has shown significant variability over the years based on the provided data. In 2020, the company experienced a negative ROE of -21.98%, indicating that the company's net income was not sufficient to cover its shareholders' equity. However, there has been a positive turnaround in the subsequent years.
In 2021, Armstrong's ROE improved substantially to 35.25%, reflecting a better utilization of equity to generate profits. This positive trend continued in the following years, with ROE reaching 37.93% in 2022, 37.82% in 2023, and 34.99% in 2024.
Overall, the increasing trend in ROE from 2020 to 2023 suggests that Armstrong World Industries Inc has been effectively leveraging its equity to generate higher returns for its shareholders. However, the slight decrease in ROE in 2024 compared to the previous year warrants further investigation to understand the factors influencing the company's profitability and efficiency in utilizing its equity investments.
Peer comparison
Dec 31, 2024