Armstrong World Industries Inc (AWI)
Debt-to-equity 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-equity ratio | 0.66 | 0.95 | 1.22 | 1.17 | 1.53 |
December 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $502,600K ÷ $757,100K
= 0.66
Armstrong World Industries Inc's debt-to-equity ratio has shown a decreasing trend over the past five years. The ratio decreased from 1.53 in December 31, 2020, to 0.66 in December 31, 2024. This downward trend indicates that the company has been reducing its reliance on debt financing in relation to its equity, which may be seen as a positive sign. A decreasing debt-to-equity ratio could signal improved financial stability and lower financial risk for the company. However, it is essential to consider other factors such as the industry benchmarks and overall financial health of the company to get a more holistic view of its financial position.
Peer comparison
Dec 31, 2024