Armstrong World Industries Inc (AWI)

Return on total capital

		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	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	333,600	336,800	312,000	295,800	287,700	272,000	267,800	274,700	263,500	243,200	245,000	232,700	-117,600	-91,300	-65,700	-49,900	310,000	302,900	304,500	295,900
Long-term debt	US$ in thousands	564,300	604,800	640,200	660,600	651,100	658,300	644,300	615,300	606,400	602,400	653,400	684,400	690,500	656,500	607,500	678,500	604,500	650,500	734,600	749,700
Total stockholders’ equity	US$ in thousands	591,800	585,500	566,700	544,800	535,000	521,200	527,800	537,600	519,700	522,200	498,300	473,600	450,900	442,600	402,900	370,400	364,900	367,300	243,100	245,100
Return on total capital		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%	29.76%	31.14%	29.74%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (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 consistent positive trend from Q1 2022 to Q4 2023, indicating improved operational efficiency and effective management of capital resources. The company's return on total capital increased steadily from 22.16% in Q1 2022 to 26.87% in Q4 2023.

The company's ability to generate higher returns on the total capital employed reflects favorable operational performance and effective utilization of resources. The upward trajectory in return on total capital suggests that Armstrong World Industries is effectively leveraging its capital investments to generate profitable returns for its shareholders.

Overall, the increasing trend in return on total capital signals a strong financial performance and efficient capital management by Armstrong World Industries Inc.