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.