Armstrong World Industries Inc (AWI)
Debt-to-capital ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 502,600 | 564,300 | 651,100 | 606,400 | 690,500 |
| Total stockholders’ equity | US$ in thousands | 757,100 | 591,800 | 535,000 | 519,700 | 450,900 |
| Debt-to-capital ratio | 0.40 | 0.49 | 0.55 | 0.54 | 0.60 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $502,600K ÷ ($502,600K + $757,100K)
= 0.40
The debt-to-capital ratio of Armstrong World Industries Inc has shown a decreasing trend from 0.60 as of December 31, 2020, to 0.40 as of December 31, 2024. This indicates that the company's reliance on debt financing in relation to its total capital has been on a downward trajectory over the years. A declining debt-to-capital ratio could suggest improved financial health and reduced financial risk for the company, as it indicates a lower proportion of debt in its capital structure. However, it is important to note that while a lower ratio can be positive, excessively low levels of debt may also limit the company's ability to leverage opportunities for growth or expansion. Overall, the decreasing trend in Armstrong World Industries Inc's debt-to-capital ratio signals a potentially more conservative approach to capital structure management.
Peer comparison
Dec 31, 2024