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.
Peer comparison
Dec 31, 2023