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.
Peer comparison
Dec 31, 2023