Armstrong World Industries Inc (AWI)
Debt-to-capital ratio
| Dec 31, 2024 | Sep 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 502,600 | 533,100 | 558,900 | 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 |
| Total stockholders’ equity | US$ in thousands | 757,100 | 717,000 | 626,800 | 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 |
| Debt-to-capital ratio | 0.40 | 0.43 | 0.47 | 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 |
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 gradual decline from 0.62 as of December 31, 2019, to 0.40 as of December 31, 2024. This indicates that the company has been reducing its reliance on debt financing compared to its capital structure over this period. A decreasing trend in the debt-to-capital ratio usually signifies a stronger financial position and reduced financial risk for the company. It suggests that Armstrong World Industries Inc is using a higher proportion of equity to finance its operations and growth, which can be seen as a positive indicator of financial health and stability.
Peer comparison
Dec 31, 2024