Armstrong World Industries Inc (AWI)
Debt-to-assets ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 assets | US$ in thousands | 1,672,400 | 1,713,800 | 1,712,300 | 1,687,900 | 1,687,200 | 1,739,400 | 1,734,000 | 1,708,100 | 1,710,000 | 1,704,900 | 1,716,700 | 1,715,300 | 1,718,500 | 1,633,700 | 1,544,300 | 1,590,300 | 1,493,300 | 1,509,700 | 1,890,000 | 1,942,600 |
| Debt-to-assets ratio | 0.34 | 0.35 | 0.37 | 0.39 | 0.39 | 0.38 | 0.37 | 0.36 | 0.35 | 0.35 | 0.38 | 0.40 | 0.40 | 0.40 | 0.39 | 0.43 | 0.40 | 0.43 | 0.39 | 0.39 |
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 remained relatively stable over the past eight quarters, fluctuating within a narrow range of 0.37 to 0.40. This indicates that the company has maintained a consistent level of debt relative to its total assets during this period.
A debt-to-assets ratio of less than 1 (or 100%) suggests that the company relies more on equity financing rather than debt to fund its operations and investments. In this case, Armstrong World Industries Inc. has consistently maintained a ratio below 0.5, which indicates a conservative approach to debt management.
A declining trend in the debt-to-assets ratio could signal improved financial health and reduced risk for the company, while an increasing trend may suggest a higher reliance on debt financing. However, the small fluctuations in Armstrong World Industries Inc.'s ratio indicate a stable and balanced capital structure.
Overall, based on the consistent level of the debt-to-assets ratio observed in the quarterly data, Armstrong World Industries Inc. appears to have a prudent debt management strategy and a solid financial position in terms of leveraging its assets to generate value for its stakeholders.
Peer comparison
Dec 31, 2023