Armstrong World Industries Inc (AWI)

Debt-to-capital 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 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
Debt-to-capital ratio		0.49	0.51	0.53	0.55	0.55	0.56	0.55	0.53	0.54	0.54	0.57	0.59	0.60	0.60	0.60	0.65	0.62	0.64	0.75	0.75

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $564,300K ÷ ($564,300K + $591,800K)
= 0.49

The debt-to-capital ratio of Armstrong World Industries Inc. has exhibited a slight decrease from 0.56 in Q4 2022 to 0.51 in Q4 2023. This indicates that the company's financial leverage has improved as a lower ratio suggests that a smaller portion of the company's capital structure is funded by debt.

Over the past year, the debt-to-capital ratio has fluctuated within a relatively narrow range between 0.51 and 0.57, indicating stability in the company's capital structure. However, it is worth noting that the ratio in Q4 2023 is at its lowest point in the period provided, which may suggest that the company has been paying down debt or raising additional equity capital.

Overall, the trend of decreasing debt-to-capital ratio reflects a positive financial position for Armstrong World Industries Inc., as it indicates a lower reliance on debt financing to support its operations and investments.