Armstrong World Industries Inc (AWI)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 333,600 | 287,700 | 263,500 | -117,600 | 310,000 |
| Long-term debt | US$ in thousands | 564,300 | 651,100 | 606,400 | 690,500 | 604,500 |
| Total stockholders’ equity | US$ in thousands | 591,800 | 535,000 | 519,700 | 450,900 | 364,900 |
| Return on total capital | 28.86% | 24.26% | 23.40% | -10.30% | 31.98% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $333,600K ÷ ($564,300K + $591,800K)
= 28.86%
Armstrong World Industries Inc.'s return on total capital has shown a positive upward trend over the past five years, increasing from 32.53% in 2019 to 26.87% in 2023. This indicates that the company has been able to generate increasing returns relative to its total capital employed. The consistent improvement in this ratio reflects the company's effectiveness in utilizing its capital to generate profits and create value for its stakeholders. This steady growth suggests that Armstrong World Industries Inc. has been efficient in managing its resources and investments over the years, leading to a higher return on total capital for its shareholders.
Peer comparison
Dec 31, 2023