Armstrong World Industries Inc (AWI)
Debt-to-equity ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 564,300 | 651,100 | 606,400 | 690,500 | 604,500 |
| Total stockholders’ equity | US$ in thousands | 591,800 | 535,000 | 519,700 | 450,900 | 364,900 |
| Debt-to-equity ratio | 0.95 | 1.22 | 1.17 | 1.53 | 1.66 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $564,300K ÷ $591,800K
= 0.95
Armstrong World Industries Inc.'s debt-to-equity ratio has exhibited a decreasing trend over the past five years, indicating improved leverage and a stronger financial position. The ratio declined from 1.67 in 2019 to 1.04 in 2023, suggesting a reduction in the company's reliance on debt to finance its operations compared to equity. This improvement reflects a better balance between debt and equity in the company's capital structure. Overall, the decreasing trend in the debt-to-equity ratio signals enhanced financial stability and a more favorable risk profile for Armstrong World Industries Inc.
Peer comparison
Dec 31, 2023