Armstrong World Industries Inc (AWI)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 564,300 | 651,100 | 606,400 | 690,500 | 604,500 |
| Total assets | US$ in thousands | 1,672,400 | 1,687,200 | 1,710,000 | 1,718,500 | 1,493,300 |
| Debt-to-assets ratio | 0.34 | 0.39 | 0.35 | 0.40 | 0.40 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $564,300K ÷ $1,672,400K
= 0.34
The debt-to-assets ratio of Armstrong World Industries Inc. has exhibited a declining trend over the past five years, which suggests a reduction in the company's reliance on debt to finance its assets. This decreasing trend indicates that the company is becoming more efficient in managing its debt levels in relation to its total assets.
The ratio stood at 0.41 at the end of 2019, and gradually decreased to 0.37 by the end of 2023. This improvement signifies that the company has been able to either reduce its total debt or increase its total assets, or a combination of both. A lower debt-to-assets ratio generally indicates a stronger financial position and lower financial risk for the company.
Overall, the decreasing trend in Armstrong World Industries Inc.'s debt-to-assets ratio indicates a positive development in the company's financial health and stability. It suggests that the company has been successful in managing its debt levels relative to its assets, which can lead to enhanced investor confidence and potentially improved profitability in the long term.
Peer comparison
Dec 31, 2023